Dollar-Based Net Retention Ratio in SaaS Companies

In the SaaS (software-as-a-service) world, we have many ways to measure the impact of customers churning or leaving the platform. In a recurring revenue model, we can use a dollar-based net revenue retention rate (DBNR), also known as net retention rate, to help us out.  These ratios are SaaS’s most commonly cited metrics to measure […]

The Rise, Fall, and Rise Again of Warren Buffett’s GEICO Investment

Warren Buffett’s GEICO investment was pivotal for two of the greatest investors of all-time. The history of GEICO’s stock is fascinating, with many ups and downs. This post will discuss the rise, fall, and rise again of GEICO’s stock. It will talk about how Warren Buffett’s mentor, Benjamin Graham, bought GEICO and saw it become […]

Should I Invest in Companies with Good Gross Margins?

To make money, you need to spend money. Companies have to operate on the same principle and successful businesses find a way to generate revenues with fewer costs, creating profits. One way we, as investors, measure profitability is the gross margin. Gross margins can help us determine how well a company manages its costs. We […]

The Circuit City Bankruptcy: Hubris and Aggressive Overextension

With hindsight, the Circuit City bankruptcy looked like a similar story to Blockbuster’s. It was innovation, new concepts and businesses, defeating the old. However, there were clear red flags before this sudden collapse. We can see them by looking deeper at the accounting and financial statements of Circuit City. Circuit City collapsed very, very quickly. […]

Applying the Lessons of Enron’s Mark-to-Market Accounting Scandal Today

It may be surprising, but companies today are still using the same mark-to-market accounting that led to Enron’s fraud and bankruptcy in 2001. Mark-to-market accounting is a special way to record assets on a balance sheet. I will try to explain the basics as simply as possible. While it’s hard for any investor to predict […]

What is Tapering in Finance and the Taper Tantrum of 2013?

The word tapering is getting mentioned a lot in the news these days as central banks are starting to tighten monetary policy. What does it mean when a central bank discusses tapering and how might it affect markets? What was the Taper Tantrum of 2013 I keep hearing being mentioned? This article will take a […]

What is Banking As A Service (BaaS)? Finally the Future of Banking?

One of the hottest scenes in the market today is fintech, with $266 billion in new investments in the first half of 2021 alone. The rise of fintech such as PayPal, Square, Affirm, Adyen, Stripe, and many others is driving many innovations in banking, leading to fantastic valuations and huge gains in the market. Banking […]

How Payment Processing Works: A Guide for Beginners

How many of you still carry cash, or how many of us still pay for anything with cash? If you are like me, not many of us. The use of credit cards, debit cards, and online payment processing has exploded over the last ten years. But do any of us understand how payment processing works? […]

The Fascinating History of Visa and the Credit Card Industry

Visa is arguably one of the world’s most recognizable logos and brands. Fun fact: they took the name because it is simple enough to sound the same in every language. Visa enables electronic fund transfers worldwide, processing upwards of 1,700 transactions per second. It is the world’s second-largest payment organization, behind China Union Pay, which […]