#lauruslabs #Q3marketupdates #Q3investorpresentations
Q3fy21/20 in crs
Rev 1288/730 ,up 76%
Ebidta 433/150
PAT 273/73 ,up 274%
EPS 5.1/1.4

Generic API growth 103% yoy
ARVs up 175% yoy
Generic FDF up 47%
Custom synthesis up 63% yoy
Onco API growth 36%

My Chads, institutions and retail are entering the DeFi space at unprecedented volume. One of the key primitives in DeFi will be the securitization and tranching of DeFi and is still massively undervalued. Enter https://t.co/Gx4H3hIzNg ( $SFI ).

Don't worry, let me ELI5.

1/ Alright so securitization and tranching, that's a mouthful. 👅💦

Let's take a step back. If you look at any financial activity within DeFi, whether it is yield farming, lending or liquidity providing, there are risks involved.

2/ As an honest farmer / liquidity provider, the rewards are yield, and the risk is losing your funds due to e.g. smart contract risk and (potentially) IL.

As an honest lender, the rewards are interest, and risk is default of the borrower.

3/ 99% of the current retail participants don't use portfolio risk management in their DeFi activities. We farm a bit, IL a bit, loan and borrow a bit and hope we make gains at the end of the day. For institutions, portfolio management is much different.

4/ The problem for institutions to enter such DeFi activities as yield farming, liquidity providing and lending/borrowing, is that it's inherently risky and not quantifiable with variable rewards. We early adopters don't mind this risk, but this prevents adoption by institutions.

Weird feeling. After 10.5 years and roughly £21,000 of debt- I finally paid off the last instalment of my student loan today.

Next month, for the first time- I’ll receive my full post tax salary, for the first time since I graduated.

Sharing as an example of how the system works in practice. In truth I only seriously started paying off the capital in the last few years, when I started to earn a good salary, paying roughly £400 a month off. I suspect many will never significantly eat into the capital.

That’s especially the case for those those under the new regime, who have over £50k of debt. I was lucky in a) lower fees (3k not 9k) and maintenance grant (not loan) still existed.

Indeed IFS forecasts that 83% of students from PST 2012 reforms won’t fully pay back their loan.

Of course those who don’t pay off their fees, the cost will eventually have to be absorbed by the Treasury. Having 17% pay back all and the rest some will still be cheaper for HMT than no loans at all. But we should recognise the a) odd conceit that we have a system of loans...

...which the vast maj will never pay back and that instead b) that graduates are paying in effect a topped up rate of income tax for many, many years.

This is value investor, Allan Mecham.

He dropped out of college at age 22 to start his fund, Arlington Value.

From 2008-2016, they did a CAGR of 30% over 8.5 years!

And in his fund letters, he shared his best frameworks for investing in companies.

Here's a breakdown of each:

1. Adopt a mindset for longevity

He focuses on variables that affect a business' durability.

Stuff like valuation doesn't matter if the business quality is misjudged.

Since a company's value is determined by its future cash flows...

Hence evaluating its future is key

2. Stay within your circle of competence

Allan is aware that his CoC is tiny!

Thus, he rarely buys companies that he:

• Hasn't researched
• Hasn't followed for at least a few years.

Because the best way to study a business is to observe its execution overtime.

3. Embrace volatility as a gift

Public markets offer you amazing deals you will never get in the private markets!

It's all about being patient.

The underlying value of a business is much more stable than the stock.

So you can buy great businesses that are mispriced!

4. Avoid noise and news

More information can give you a false sense of confidence.

It can create an illusion of "knowledge", and make you think many things are important.

The key is to know what are the 3-5 main variables in the company, and focus on those.

Ignore the rest.