§ 01
AAPL — Operating Margin, ROE, Revenue Growth. Open AAPL on the Ledge to see current values.
§ 02
| Question to Ask | Economic Concept | Where to Check |
|---|---|---|
| Can this company raise prices? | Elasticity / pricing power | Gross margin trends |
| What happens if revenue drops 20%? | Cost structure / operating leverage | Fixed vs variable cost mix |
| Is this industry attractive? | Market structure / competition | Number of players, margin spread |
| Does this company have a moat? | Barriers to entry / monopoly power | ROIC consistency over 5+ years |
| What could go wrong politically? | Externalities / regulation | ESG ratings, regulatory news |
§ 03
The best stock analysts are applied economists. They do not just read financial statements. They understand the economic forces that determine whether those numbers will improve or deteriorate.
§ 04
Pick your favorite company. Run through the 5 questions in the table above using the **Ticker** view. Write your findings in the scratchpad.
§ 05
§ 06
An industry has 5 producers at similar scale, homogeneous product, commodity pricing. One producer has 2% cost advantage. Long-term implication for its stock?
Five questions · AI feedback
Sit with the ideas.
You analyze two companies. Company A: 70% gross margin, stable for 10 years, no close competitors, 25% ROE. Company B: 15% gross margin, declining over 5 years, many competitors, 8% ROE. Company B trades at a lower P/E. Which is the better investment?
Why: