Husband, Father, Investor, Founder Briarcliff Capital, Co-founder @LeverageVC, Lifetime Learner
Woodmere, NY
Joined July 2015
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David Rabinovici retweeted
Some of the best qualities in a person:
- genuinely happy about other people’s wins
- high agency
- gets excited over little things
- curious not judgmental
- owns their own mistakes & poor choices
- kind to people who can do nothing for them
- authentic even when it’s hard
- does what they say they’re going to do or more
- values how life feels > how life looks
- okay with being disliked
Thank you @extremesb for being a wonderful host! Had a great time and @RosiesBurgers_ is a tremendous brand. The hunt for quality companies and the best management teams in the world is hard, but the joy in finding one is tremendous. $HBFG has all the ingredients of an amazing long term investment. Excited to be a small part of the journey.
Also……….@itshealwellness is off the charts phenomenal. The best açaí bowl ever hands down. 👇
David Rabinovici retweeted
The whole point of partnering with exceptional management is they create multiple ways for shareholders to win.
You are often just one *unexpected* press release away from the stock gapping up and going on a huge run.
Wonderful write up on a business early in its journey. Thank you @JoaoZambardino
I see more attention coming $HBFG way. Finally. I expect the next year to two years to be big for HBGF as they inflect to profitable, prove that they can build numerous brands, smash the unity economics, show their returns on capital and margin profile as they scale. Much of the infrastructure has been put in place and it’s working.
Best part is the guys running the show are all execution and no talk. So rare to find such integrity and quality at a small Canadian microcap. Overvalued at a quick glance but so so undervalued once you understand the company.
I see you Sean and Shawn (@extremesb and @shawnmoniz) 👀
Great time to buy $SKYH and get in early on a high quality company with a strong moat and a long runway….as it expands into profitability and beyond!
Sky Harbour $SKYH
Lately, shares of SKYH have been declining, primarily due to a short report published on Value Investors Club, which contains numerous fundamental errors severely distorting the company's actual economic and operational situation.
The report claims SKYH has extraordinarily high operating costs per square foot (around $44.30/sq ft), arguing that margins are unsustainable and the company's future projects cannot be economically viable. It also asserts that revenue projections per square foot are overly optimistic and unrealistic, and questions the financial structure and the feasibility of completing key developments, notably the Miami-Opa-Locka hangars.
However, the short report contains several critical mistakes:
Mistake in calculating operating costs per square foot:
The company's actual operating costs are roughly $7/sq ft, not $44.30/sq ft. This significant error arose from misunderstanding and confusing development-stage property costs (still unstabilized) with fully operational and stabilized property expenses. The original figure dramatically exaggerates the real cost.
Ignoring the triple-net lease (NNN) structure:
The report overlooked that SKYH uses triple-net leases, meaning tenants cover significant operating expenses, including taxes, insurance, and maintenance costs. This substantially reduces actual operating costs borne by the company itself.
Severe underestimation of additional service-related revenues:
The report notably underestimated the company's real revenue potential per square foot by failing to include extra income streams such as fuel fees and other operational service charges.
Specific calculation errors related to Miami-Opa-Locka development:
Detailed analysis shows the short report erroneously inflated operating costs and disregarded critical additional revenue streams, ultimately leading to deeply flawed conclusions regarding the project’s true profitability.
In summary, the short thesis is built upon fundamental accounting and operational misunderstandings, leading to incorrect conclusions about SKYH. I strongly recommend reviewing the corrected figures and detailed clarifications before making hasty decisions based on this inaccurate analysis.
Wonderful company $NRP.
So rare to find a management team with discipline.
So rare to find a management team making consistent strong capital allocation decisions over an extended period of time.
Warrants gone, preferreds gone, debt will be gone soon. Before interest payments (which will soon be gone) $NRP made $24 of FCF per share in 2023 and $20 in 2024. The management team has done a brilliant job here simplifying this business. Well done
Great concise thread on $DNP.WA
Dino Polska $DNP.WA published their Q4 results after-hours. Here is our take!
1. Dino opened +116 stores in Q4, which means they opened 283 new stores in 2024 (250 in 2023). Management delivered on their promise to open more stores this year compared to 2023, good sign!
Well put!
Gently, softly, calmly, let’s talk about what’s happening in DC right now.
Friends, have you ever been through a ZBB process? If not, let me give you my take. So, in a corporation where expenses are out of control, you have to put the entire company through a zero based budgeting process. It is one of the most painful things that people in a company experience.
You basically have to justify every. single. expense. And you also cut a bunch, and then only add back after you’ve gone through a proper ZBB cycle.
The US government is going through a ZBB right now. And that is necessary because spending is out of control. The complexity is so vast that I expect it will take AI to decipher.
You cannot tell me that a government that accidentally wires hundreds of millions of dollars to the Taliban has its finances in order. That signals an underlying disaster. That signals bad stewardship of resources.
In fact, it is a disaster. Over the last 20 fiscal years, the US government has made ~$2.7 trillion in "improper payments," according to the US Government Accountability Office. Trillion! With a T!
That financial management disaster was not caused by @elonmusk. And there is no painless way to clean it up.
Elon is doing what any executive would do walking into a giant mess. You ZBB and then build back.
So, I don’t believe that America is going to be on the wrong side of global right and wrong, as some are saying. I don’t believe that America is going to be permanently isolationist. I do believe that unwatched finances will get out of control in any human system, and that the GAO has been trying to ring this bell for years, and that scaled complexity requires scaled financial management.
Because the US has the largest budget in the world, it will now go through the single most complex ZBB ever undertaken in the history of the world.
Some states do ZBB, but it's never been done at the federal level. President Jimmy Carter tried, but the bureaucratic systems were too complex, and President Ronald Reagan abandoned the attempt.
So, if there is one person in the world chosen to lead this Grand Canyon of projects, we would hope for the president to choose one of the best capital allocators on the planet. Better if that human is also one who can leverage AI and technical talent to manage the massive complexity.
Anyone who has lived through a ZBB at the corporate level will tell you that it’s hell and everyone hates it. This is why I feel really bad for federal workers -- I have a lot of empathy for civil servants and people doing a great job every day for the United States. No doubt, the uncertainty is trying and stressful for many. It's an unfortunate situation.
So, that's my take. I don't want to speak beyond what I know and can observe from the other side of the country. I've worked both in the private sector and the public sector -- the cultures are different. And an Elon-Musk-style culture is going to be the most hard core of them all. No doubt, it's jarring. It's gonna be a lot.
But what I also know is that every time I have ever doubted Elon, I ended up being the one who was wrong.
David Rabinovici retweeted
Here is to peace in Europe and the Middle East early in 2025 and the safe return of all of the hostages!
Happy New Year!
In my experience excellent capital allocator and excellent operator is where you need to be. Returns can be tremendous. Haw certainly checks both boxes.
6. Haw is a rare combination of being both an excellent operator and capital allocator.
As one source put it: “Unlike most people in finance he understands how to make things. The combination of understanding how the product is made and capital allocation is a deadly force in business and 99% of CEOs don't have both. He has the ability to really understand customers and manufacturing processes…He comes from a small town where you fix things, not bring to someone to fix it.”
2024 resolution: Read 52 books. One a week. 4 down and starting No. 5.
So far:
1. Poor Charlie’s Almanack
2. Lessons From Century Club Companies: Managing for Long Term Success
3. Benjamin Franklin (Carl Van Doren)
4. Zen and the Art of Motorcycle Maintenence
36. Traction (Wickman)
37. Rocket Fuel (Wickman)
38. 7 Powers (Helmer)
39. The Intelligent Option Investor (Kobayashi-Solomon)
40. Selfish Gene (Dawkins)
41. Competitive Strategy (Porter)
42. Twilight in the Desert (Simmons)
43. How the World Really Works (Smil)
David Rabinovici retweeted
September 27th is the most important day in the Middle East since the Abraham Accords breakthrough.
I have spent countless hours studying Hezbollah and there is not an expert on earth who thought that what Israel has done to decapitate and degrade them was possible.
This is significant because Iran is now fully exposed. The reason why their nuclear facilities have not been destroyed, despite weak air defense systems, is because Hezbollah has been a loaded gun pointed at Israel. Iran spent the last forty years building this capability as its deterrent.
President Trump would often say, “Iran has never won a war but never lost a negotiation.” The Islamic Republic’s regime is much tougher when risking Hamas, Hezbollah, Syrian and Houthi lives than when risking their own. Their foolish efforts to assassinate President Trump and hack his campaign reek of desperation and are hardening a large coalition against them.
Iranian leadership is stuck in the old Middle East, while their neighbors in the GCC are sprinting toward the future by investing in their populations and infrastructure. They are becoming dynamic magnets for talent and investment while Iran falls further behind. As the Iranian proxies and threats dissipate, regional security and prosperity will rise for Christians, Muslims and Jews alike.
Israel now finds itself with the threat from Gaza mostly neutralized and the opportunity to neutralize Hezbollah in the north. It’s unfortunate how we got here but maybe there can be a silver lining in the end.
Anyone who has been calling for a ceasefire in the North is wrong. There is no going back for Israel. They cannot afford now to not finish the job and completely dismantle the arsenal that has been aimed at them. They will never get another chance.
After the brilliant, rapid-fire tactical successes of the pagers, radios, and targeting of leadership, Hezbollah’s massive weapon cache is unguarded and unmanned. Most of Hezbollah fighters are hiding in their tunnels. Anyone still around was not important enough to carry a pager or be invited to a leadership meeting. Iran is reeling, as well, insecure and unsure how deeply its own intelligence has been penetrated. Failing to take full advantage of this opportunity to neutralize the threat is irresponsible.
I have been hearing some amazing stories about how Israel has been collecting intelligence over the past 10 months with some brilliant technology and crowdsourcing initiatives.
But today, with the confirmed killing of Nasrallah and at least 16 top commanders eliminated in just nine days, was the first day I started thinking about a Middle East without Iran’s fully loaded arsenal aimed at Israel. So many more positive outcomes are possible.
This is a moment to stand behind the peace-seeking nation of Israel and the large portion of the Lebanese who have been plagued by Hezbollah and who want to return to the times when their country was thriving, and Beirut a cosmopolitan city. The main issue between Lebanon and Israel is Iran; otherwise there is a lot of benefit for the people of both countries from working together.
The right move now for America would be to tell Israel to finish the job. It’s long overdue. And it’s not only Israel’s fight.
More than 40 years ago, Hezbollah killed 241 US military personnel, including 220 Marines. That remains the single deadliest day for the U.S. Marine Corps since the Battle of Iwo Jima. Later that same day, Hezbollah killed 58 French paratroopers.
And now, over the past six weeks or so, Israel has eliminated as many terrorists on the US list of wanted terrorists as the US has done in the last 20 years. Including Ibrahim Aqil, the leader of Hezbollah’s Islamic Jihad Organization who masterminded the 1983 killing of those Marines.