As noted in Part 1, the goal of this series is to find value across the EV supply chain. In this section, I dig into the battery manufacturers, as it is one of the largest cost contributors to EVs.

Summary: I analyzed the 6 largest EV battery manufacturers for this analysis, controlling nearly 90% of the market today (LG Chem, CATL, Panasonic, Samsung SDI, BYD, and SK Innovation). Just for reference, I also included Tesla, Volkswagen, and QuantumScape, but note these are not included in the battery-specific comps.

Ultimately, I believe LG Chem is the best investment opportunity to take…


There’s a somewhat famous story about Samuel Brannan and Levi Strauss making millions off the California gold rush of the 1850s without mining for a single piece of gold. Meanwhile, several gold miners went home empty handed. The main lesson here is that in a vertical supply chain, it can be tougher to make a profit within an over-hyped market. There are likely better opportunities by acting as a supplier to the “hyped business”.

A more recent example of this phenomenon is comparing the cannabis hype in 2018 vs. their suppliers; primarily agricultural chemicals. Although this is quite a crude…


>Thesis:

As of about a month ago, I thought Bitcoin was still too speculative, volatile, and generally risky to be considered a serious asset. The day Tesla announced their purchase of $1.5bn of Bitcoin, I knew it was time to reconsider.

The catalyst from day 1 was widespread, institutional acceptance. Without this, it’s still retail speculation and way too much enthusiasm. How would Bitcoin be used as a means for payment without it? How would it be a significant store of value, if most of the world’s wealth was still held in gold and hard currencies? This is why institutional…


>Intro

After Gamestop’s eye watering rally Friday Jan 22 and Monday Jan 25, several discussions have occurred in the financial newsletter circles (Nope, it's Lily, Kris Sidial, Benn Eifert, Matt Levine, among many others). Particularly regarding gamma squeezes, short squeezes, and Schelling points. Each of those listed above has done an incredible job outlining what happened, so please take a look at their articles as well.

The general consensus of the price movement seems to be that a short squeeze was somewhat a factor, but not the driver. And that the driver was actually a gamma squeeze. And that for…

Levi Helms

Views my own. Not investment advice...

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