$UBER Deep Dive w/ Abdullah, Mostly Borrowed Ideas (Episode 44)

Sep 25, 2020

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***Disclaimer: Nothing you hear on this podcast is in any way, shape or form to be construed as investment advice. The guest on this podcast may hold positions in any/all names mentioned during the podcast. This is not investment advice and investors should always conduct personal due diligence before investing in any security. Past performance of any funds mentioned are not indicative of future returns.***

Abdullah runs the Mostly Borrowed Ideas newsletter and Twitter account. He's one of the sharpest value investors on Twitter and I look forward to his emails every month. Abdullah got his start as an equity analyst and realized he wanted to create his own newsletter and achieve financial freedom. The ability to work anywhere and do what he loves. You can hear his passion in the way he talks about business models, valuation and investing.

We spend the early part of the show discussing Abdullah's background and general investment philosophy. After that, we dive deep into Abdullah's latest research report: Uber (U).

There's a lot of information in this podcast, so you might want to listen twice. Abdullah walks through the bullish thesis, Uber's specific risk points/competitive challenges and valuation. What I loved about Abdullah's research is that he ended the report not bullish on the company.

Pay close attention to his thoughts on valuation and how he backs into it using an Expectations Investing approach.

Here's the time-stamp:

[3:23] Intro Questions
[9:13] Why did you start a newsletter ?
[16:34] Uber Deep Dive
[22:04] Why People Use Uber
[28:06] The Troubling Economics of Uber
[39:26] Driver & Customer Incentive Structures
[42:18] Uber Eats Unit Economics
[53:15] The Consumer Disincentive for Uber Eats
[63:12] Performance-Based RSU’s
[69:34] Closing Questions

If you want to learn more about Abdullah and his newsletter, check out the following links: