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| financial_regulation [2025/08/24 03:45] – created xiaoer | financial_regulation [2025/09/03 18:12] (current) – xiaoer |
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| ====== financial_regulation ====== | ====== Financial Regulation ====== |
| ===== The 30-Second Summary ===== | ===== The 30-Second Summary ===== |
| * **The Bottom Line:** **Financial regulation is the set of rules that acts as the traffic system for the entire market, designed to protect investors and maintain economic stability, while also creating powerful competitive advantages—and significant risks—that a diligent value investor must understand.** | * **The Bottom Line:** **Financial regulation is the set of rules that governs the financial system, acting as both a critical shield that protects investors from chaos and a powerful force that can create or destroy a company's long-term competitive advantage.** |
| * **Key Takeaways:** | * **Key Takeaways:** |
| * **What it is:** The official rulebook for banks, brokers, and public companies, enforced by government agencies like the SEC to ensure fairness, transparency, and stability. | * **What it is:** The official "rules of the game" for companies, banks, and stock markets, enforced by government bodies like the SEC. |
| * **Why it matters:** It dictates the quality of information we receive, shapes a company's [[economic_moat|competitive moat]], and directly impacts long-term profitability and [[risk_management]]. | * **Why it matters:** It provides the transparency (e.g., required financial reports) essential for analysis and creates stability, taming market extremes. For certain industries, it builds powerful [[economic_moat|economic moats]]. |
| * **How to use it:** Analyze the specific regulations governing a company's industry to assess its long-term risks, competitive advantages, and the durability of its earnings power. | * **How to use it:** A value investor doesn't just acknowledge regulation; they actively analyze it as a key risk factor and a potential source of durable profitability for any company they study. |
| ===== What is Financial Regulation? A Plain English Definition ===== | ===== What is Financial Regulation? A Plain English Definition ===== |
| Imagine driving in a city with no traffic lights, no speed limits, no road signs, and no police. It would be chaos. Some drivers might get to their destination faster, but accidents would be rampant, gridlock would be common, and you’d never be sure if the bridge you're crossing is even safe. This chaotic city is a market without financial regulation. | Imagine trying to drive through a major city during rush hour, but with no traffic lights, no speed limits, no lane markings, and no police. It would be utter chaos. The biggest, most aggressive drivers might get through, but crashes would be constant, progress would be unpredictable, and the average person would be terrified to even get on the road. |
| **Financial regulation**, in simple terms, is the complete set of traffic laws for money. It's the rulebook that governs how the financial world operates. These rules are created and enforced by government bodies—think of them as the Department of Transportation and the highway patrol for the economy. In the United States, the most famous of these is the **Securities and Exchange Commission (SEC)**. In the UK, it's the **Financial Conduct Authority (FCA)**, and across Europe, you have bodies like the **European Securities and Markets Authority (ESMA)**. | **Financial regulation is the traffic control system for the world of investing.** |
| Their job is to install the traffic lights, paint the lane lines, and post the speed limits to achieve three main goals: | It’s the collection of laws and rules that brings order to the chaotic rush of money. Agencies like the Securities and Exchange Commission (SEC) in the U.S. or the Financial Conduct Authority (FCA) in the U.K. are the traffic engineers and the police force, all in one. They install the "traffic lights" by: |
| 1. **Protect Investors:** This is about ensuring you, the investor, aren't being lied to or scammed. It’s why companies must publish detailed financial reports and why brokers must act in your best interest. It's the rule that says, "You can't sell someone a car after rolling back the odometer." | * **Mandating disclosures:** Forcing companies to publish regular, audited financial reports (the `[[sec_filings|10-K and 10-Q]]` reports) is like requiring every car to have a transparent dashboard showing its true speed and fuel level. It allows you, the investor, to look under the hood before you buy. |
| 2. **Ensure Market Integrity:** This is about making sure the game is fair. Regulations combat "insider trading" (trading on non-public information) and market manipulation to ensure that stock prices reflect public information, not just the whims of a powerful few. | * **Preventing "reckless driving":** Rules against insider trading, market manipulation, and predatory lending are the speed limits and drunk driving laws of finance. They aim to prevent bad actors from causing catastrophic pile-ups that harm everyone. |
| 3. **Prevent Systemic Risk:** This is the big one. It's about preventing a single bank or institution from failing so catastrophically that it takes the entire economy down with it, like a massive multi-car pile-up on the financial highway. The regulations that came after the 2008 financial crisis, which require banks to hold more [[capital_adequacy_ratio|emergency cash]], are a direct example of this. | * **Setting "rules of the road":** Regulations determine how stock exchanges must operate, how investment funds can advertise, and what kind of capital cushion banks must hold to absorb losses. |
| For a value investor, regulation isn't just boring legal text. It's the architecture of the entire playing field. It determines what you can see, who you can trust, and what makes a business truly durable. | Just like traffic laws, financial regulations can sometimes feel burdensome or slow things down. But without them, the entire system would grind to a halt in a fiery wreck. For the patient, long-term value investor, this regulated environment isn't a nuisance; it's the stable, predictable roadway on which you can safely drive towards your financial goals. |
| > //"There is a need for regulation, but it's a tough balancing act to get that right. If you have too much, you’re going to stifle entrepreneurship. If you have too little, you can have these systemic problems." - Warren Buffett// | > //"You need a good referee in a game. You don't want the referee to decide the game, but you need one. You want a cop on the beat. You want a regulator. But you don't want them running your business." - Warren Buffett// |
| ===== Why It Matters to a Value Investor ===== | ===== Why It Matters to a Value Investor ===== |
| For a value investor who thinks like a business owner, financial regulation isn't a peripheral topic—it's central to the investment process. It directly influences a company's intrinsic value and the margin of safety you can expect. Here's why it's so critical. | For a speculator chasing short-term price swings, regulation is often just noise. But for a value investor, who approaches buying a stock as buying a piece of a real business, financial regulation is a fundamental pillar of the entire investment process. It's not a side issue; it's woven into the very fabric of value analysis. |
| * **Regulation as a Source of a Powerful [[economic_moat|Economic Moat]]:** A moat is a durable competitive advantage that protects a company's profits from competitors. Some of the widest and deepest moats are dug and maintained by government regulation. | **1. The Bedrock of Analysis: Transparency** |
| * **Banking:** You can't just decide to open a bank in your garage. You need a banking charter, which is incredibly difficult to obtain. This regulatory barrier to entry protects established banks like JPMorgan Chase or Bank of America from a flood of new competitors. | Benjamin Graham and Warren Buffett's entire approach depends on the ability to analyze a company's financial health and calculate its [[intrinsic_value]]. Where does this information come from? Regulation. The legal requirement for public companies to release detailed, audited financial statements is the single most important gift regulation gives to the value investor. Without these mandatory disclosures, investing would be a guessing game, not a discipline. It turns a potential gamble into a solvable puzzle. |
| * **Pharmaceuticals:** The Food and Drug Administration (FDA) grants patents that give a drug company the exclusive right to sell a new medicine for years. This is a government-granted monopoly, a truly powerful moat that allows companies like Pfizer and Merck to recoup billions in research costs. | **2. The Architect of Economic Moats** |
| * **Utilities:** Your local electric company operates as a regulated monopoly. The government grants it an exclusive service area, and in return, regulators control the prices it can charge. This creates a highly predictable, though not high-growth, business. | A value investor's holy grail is a business with a deep, durable [[economic_moat]]—a sustainable competitive advantage that protects it from rivals. In many cases, regulation is the very thing that digs that moat. |
| * **The Foundation of [[fundamental_analysis|Fundamental Analysis]]:** Value investing is built on a deep dive into a company's financial health. Where does that information come from? Mandated regulatory filings. The SEC requires all public companies to file quarterly reports (Form 10-Q) and annual reports (Form 10-K). These documents are the value investor's treasure map. Without regulations forcing this transparency, we would be investing blind, relying on company press releases and rumor—the domain of the speculator, not the investor. | * **Banking:** Think about starting a new bank. You can't just rent an office and start taking deposits. You face a mountain of regulatory hurdles, from capital requirements to FDIC insurance. This high barrier to entry protects established, well-run banks. |
| * **A Key Component of [[risk_management|Risk Management]]:** Understanding the regulatory environment is a crucial part of assessing risk. A change in the rules of the game can cripple a business overnight. | * **Utilities:** Your local power company often operates as a government-sanctioned monopoly. Regulation prevents competitors from building a second set of power lines down your street, granting the incumbent a massive, permanent moat in exchange for price controls. |
| * **Environmental Regulations:** A power company heavily reliant on coal could see its profits evaporate if new carbon taxes are implemented. | * **Healthcare:** A pharmaceutical company's most valuable asset is often its patent on a blockbuster drug—a temporary, government-granted monopoly, which is a form of regulation. |
| * **Data Privacy Laws:** A social media company like Meta (Facebook) faces enormous risk from new data privacy regulations (like GDPR in Europe), which can limit its ability to target ads, its primary source of revenue. | **3. The Tamer of [[mr_market|Mr. Market]]'s Manias** |
| * **Financial Regulations:** For a "Buy Now, Pay Later" company, the single biggest risk might be a new regulation that forces it to operate under the same strict rules as credit card companies. | Value investors thrive on rationality. They seek to buy when the market is pessimistic and sell when it's euphoric. Regulations like "circuit breakers" (which temporarily halt trading during a market crash) and restrictions on leverage are designed to pump the brakes on widespread panic or speculative frenzy. While they can't eliminate volatility, they can reduce the frequency of market meltdowns, giving the rational investor a more stable field on which to operate. |
| * **Defining Your [[circle_of_competence|Circle of Competence]]:** Warren Buffett famously advises investors to stay within their "circle of competence." If you don't understand the complex regulatory landscape of an industry—be it banking, healthcare, or telecommunications—then you cannot accurately assess its future earnings power. That industry is, by definition, outside your circle. Acknowledging this is a hallmark of a disciplined investor. | **4. A Critical Component of Risk Assessment** |
| In short, regulation isn't just background noise. It can be the very reason a business is a wonderful, long-term investment, or the hidden iceberg waiting to sink it. | Regulation isn't always a positive force. A shift in the political winds can bring about new rules that decimate an industry's profitability. For a tobacco company, the primary risk is regulatory. For a tech giant, the primary risk is a potential antitrust lawsuit. A prudent value investor must assess "regulatory risk" with the same diligence they use to analyze a balance sheet. Understanding this risk is a key part of staying within your [[circle_of_competence]]. |
| ===== How to Apply It in Practice ===== | ===== How to Apply It in Practice ===== |
| You don't need a law degree to analyze the impact of regulation, but you do need to know where to look and what questions to ask. As a value investor, your goal is to determine if regulation is a tailwind (helping the business) or a headwind (hurting it). | Analyzing financial regulation isn't about reading thousands of pages of legal text. It's about developing a strategic mindset to assess how the "rules of the game" impact the long-term cash flows of a business. Here is a practical checklist for incorporating regulatory analysis into your investment process. |
| === The Method === | === The Regulatory Checklist for the Prudent Investor === |
| Here is a practical, four-step process to incorporate regulatory analysis into your investment research. | **Step 1: Identify the Regulatory Landscape** |
| - **Step 1: Identify the Key Regulators and the "Rules of the Game"** | First, categorize the company. Is it operating in a... |
| Before investing in any company, ask: "Who polices this industry?" The answer will tell you a lot about the company's risks and opportunities. | * **Heavily Regulated Zone?** (e.g., Banking, Utilities, Insurance, Healthcare, Telecom). Here, regulation is a central feature of the business model. |
| * **Airlines:** The Federal Aviation Administration (FAA) governs safety, a huge fixed cost and barrier to entry. | * **Moderately Regulated Zone?** (e.g., Automotive, Food & Beverage, Airlines). Here, regulations focus on safety, environmental, and labor standards. |
| * **Biotech:** The Food and Drug Administration (FDA) controls the entire product lifecycle, from trials to market approval. Its decisions mean life or death for these companies. | * **Lightly Regulated Zone?** (e.g., Software-as-a-Service, Retail, Consulting). Here, regulations are more general, but the risk of //new// regulation is a key factor (see social media). |
| * **Banks:** A whole alphabet soup of agencies (The Fed, FDIC, OCC) dictate how much capital banks must hold and how much risk they can take. | **Step 2: Assess Regulation as a Moat or a Millstone** |
| * A quick search for "[Industry Name] regulatory bodies" will give you the names you need to know. | Once you know the landscape, ask the critical question: Do the rules primarily **help** or **hinder** the company? |
| - **Step 2: Scrutinize the "Risk Factors" Section of the Annual Report** | * **Moat Indicator:** Do regulations create high barriers to entry? (e.g., requiring billions in capital for a bank, or years of clinical trials for a drug). Does the company benefit from patents, licenses, or exclusive government contracts? |
| The best place to start is the company's own disclosure. In the [[sec_filings|10-K (annual report)]], there is a section titled **"Risk Factors."** This is where the company's lawyers list everything that could possibly go wrong. Read this section carefully. The company is legally required to disclose significant regulatory risks. Look for phrases like: | * **Millstone Indicator:** Do regulations impose heavy, margin-eroding compliance costs? Is the company subject to price caps that limit its profitability? Is it constantly fighting lawsuits related to regulatory breaches? |
| * //"Changes in government regulation could materially impact our business."// | **Step 3: Quantify the Costs of Compliance** |
| * //"Our business is subject to complex and evolving U.S. and foreign laws and regulations regarding privacy and data protection."// | Look for clues in the company's `[[sec_filings|10-K]]` report. In the "Risk Factors" section, management is required to discuss how regulation could adversely affect their business. Look for line items related to legal expenses, environmental cleanup costs, or investments made to meet new standards. While not always a separate line item, these costs eat into the gross and operating margins. Compare these to less-regulated peers to see the true impact. |
| * //"Failure to obtain, or delays in obtaining, required regulatory approvals could..."// | **Step 4: Analyze Future Regulatory Threats and Tailwinds** |
| This section is a roadmap to the company's primary vulnerabilities. | Investing is a forward-looking game. You must think about what's coming next. |
| - **Step 3: Determine if Regulation is a Moat or a Millstone** | * **Threats:** Are politicians or the public calling for a crackdown on the industry (e.g., Big Tech antitrust, price controls on drugs, windfall taxes on oil companies)? A change in government can completely alter an investment thesis. |
| Now, synthesize what you've learned. Is regulation primarily helping or hurting this specific business? A simple table can help you organize your thoughts. | * **Tailwinds:** Is the government actively promoting the industry? (e.g., tax credits for renewable energy, subsidies for semiconductor manufacturing, infrastructure spending that benefits construction firms). These regulatory tailwinds can provide a powerful, multi-year boost to a company's prospects. |
| ^ Feature ^ Regulation as a Moat (Tailwind) ^ Regulation as a Millstone (Headwind) ^ | |
| | **Entry Barriers** | High licensing requirements (e.g., banking, telecom) keep new competitors out. | Low barriers allow a flood of competition; future regulation is a threat. | | |
| | **Pricing Power** | Regulated monopoly status (e.g., utilities) allows for a guaranteed, stable return. | Price caps or anti-trust oversight limit a company's ability to raise prices. | | |
| | **Compliance Costs** | Costs are high, but the large incumbent can afford them while smaller players can't. | Costs are a significant drain on profits and stifle innovation (e.g., high environmental compliance costs). | | |
| | **Product Lifecycle** | Patents (e.g., pharma) grant a long-term, government-protected monopoly. | The threat of a product being banned or restricted (e.g., tobacco, certain chemicals) is constant. | | |
| - **Step 4: Monitor for Regulatory Change** | |
| Regulation is not static. A new administration, a public outcry, or a technological shift can change the landscape. As a long-term owner of the business, you must stay informed. This doesn't mean trading on headlines. It means understanding how a proposed rule change could affect the company's [[intrinsic_value]] over the next decade. Good sources include industry-specific news outlets (e.g., American Banker for finance), the investor relations section of the company's website, and the websites of the regulatory agencies themselves. | |
| === Interpreting the Landscape === | |
| When you look at the regulatory world, recognize that not all environments are created equal. | |
| * **Stable vs. Shifting:** An investor in a utility company like Consolidated Edison can be reasonably sure the regulatory framework will look very similar in five years. This stability allows for more predictable earnings. Conversely, an investor in a cryptocurrency exchange is betting on a future where the regulatory framework is completely unknown. This is a much higher-risk proposition. | |
| * **Over-regulation vs. Under-regulation:** Both extremes are dangerous. Over-regulation can suffocate an industry with high costs and bureaucracy, preventing growth. Under-regulation can lead to a "Wild West" environment where fraud is rampant and catastrophic blow-ups (like Enron or the collapse of Lehman Brothers) are possible. A healthy, moderately regulated industry is often the sweet spot for a value investor. | |
| ===== A Practical Example ===== | ===== A Practical Example ===== |
| Let's compare two hypothetical companies to see how a value investor would analyze their different regulatory worlds. | Let's compare two hypothetical companies through the lens of financial regulation to see how it shapes them as potential value investments. |
| * **Company A: "American Heartland Power" (AHP)** | ^ **Feature** ^ **"Dominion Utility Group" (DUG)** ^ **"Trendr" (Social Media Platform)** ^ |
| * **Business:** A traditional electric utility serving a major Midwestern state. It owns power plants (a mix of natural gas and renewables) and the transmission lines that deliver electricity to homes and businesses. | | **Business Model** | Generates and distributes electricity to a captive region. | Operates a global social network, revenue from digital advertising. | |
| * **Regulatory Environment:** AHP is a regulated monopoly. Its primary regulator is the state's Public Utility Commission (PUC). The PUC sets the electricity rates AHP can charge its customers. The goal is to allow AHP to cover its costs and earn a "fair" [[return_on_equity|return on its invested capital]]—typically in the 9-10% range. It is also regulated by the EPA for environmental standards. | | **Regulatory Landscape** | **Heavy.** State Public Utility Commission (PUC) sets the prices DUG can charge its customers. | **Light but evolving.** Facing intense scrutiny over data privacy, content moderation, and antitrust concerns. | |
| * **Value Investor Analysis:** | | **Regulation as a Moat?** | **Yes, a massive one.** DUG has a legal monopoly. The PUC makes it virtually impossible for a competitor to enter its territory. | **No.** Regulation is currently the single biggest threat to its business model. A new privacy law could cripple its ad-targeting engine. | |
| * **Moat:** The regulated monopoly is a massive moat. No one can build a competing power grid. This leads to extremely predictable revenue and cash flow. | | **Earnings Predictability** | **Very High.** The PUC allows DUG to earn a stable, predictable return on its invested capital. Earnings are "bond-like." | **Very Uncertain.** Future profitability is heavily dependent on unknown future regulations. A large fine or a forced breakup could erase billions in value. | |
| * **Risks:** The primary risk is regulatory. If a new, less business-friendly commission is appointed, they might deny a needed rate increase, squeezing AHP's profit margins. New, costly EPA rules (a millstone) could also require billions in new investment, which the PUC might not let them fully recover through higher rates. | | **Value Investor's Takeaway** | DUG is a "boring" but highly predictable business. Its moat is carved out of regulation. The [[margin_of_safety]] lies in buying it at a price that offers a fair return relative to its low risk. You're betting on stability. | Trendr may have high growth potential, but it carries immense, unquantifiable regulatory risk. A value investor would demand a huge discount to its estimated [[intrinsic_value]] to compensate for this uncertainty. Many would simply place it in the "too hard" pile. | |
| * **Conclusion:** AHP is a low-risk, low-to-moderate reward investment. Its upside is capped by regulation, but its downside is also protected. Its value is relatively easy to calculate because its future earnings are so predictable. | This example shows that regulation is not inherently "good" or "bad." For Dominion Utility, it's the source of its strength. For Trendr, it's the source of its greatest weakness. |
| * **Company B: "PayLater Finance Inc." (PLFI)** | |
| * **Business:** A fast-growing financial technology ("FinTech") company that offers "Buy Now, Pay Later" (BNPL) services at online checkouts. | |
| * **Regulatory Environment:** This is a new industry that currently exists in a regulatory gray area. PLFI is not regulated like a bank or a credit card company. It does not have to perform the same stringent ability-to-repay checks, and its fee structures are not as heavily scrutinized. However, regulators like the Consumer Financial Protection Bureau (CFPB) are actively investigating the industry. | |
| * **Value Investor Analysis:** | |
| * **Moat:** The current moat is weak and based on brand and technology, not regulation. The lack of regulation is the //reason// for its rapid growth. | |
| * **Risks:** The regulatory risk is enormous and existential. If the CFPB decides to regulate BNPL firms under the same rules as credit card companies, PLFI's business model could be fundamentally broken. Its costs would skyrocket, its ability to approve customers would shrink, and its growth would slam to a halt. | |
| * **Conclusion:** PLFI is a high-risk, potentially high-reward speculation. It's impossible to confidently calculate its [[intrinsic_value]] because the future "rules of the game" are a complete unknown. A value investor would likely avoid PLFI, or at the very least, demand an enormous [[margin_of_safety]] to compensate for the massive uncertainty. | |
| This comparison highlights the core issue: for AHP, regulation creates certainty; for PLFI, the //lack// of regulation creates profound uncertainty. | |
| ===== Advantages and Limitations ===== | ===== Advantages and Limitations ===== |
| It's helpful to step back and look at the pros and cons of financial regulation from a macro, investor-focused perspective. | ==== Strengths ==== |
| ==== Strengths (of a well-regulated market) ==== | (The benefits of a regulated environment for investors) |
| * **Investor Protection & Trust:** The primary benefit is a reduction in fraud, deception, and outright theft. This builds trust in the market, encouraging more people to invest their capital for the long term, which benefits everyone. | * **Promotes Transparency:** Mandated, audited financial disclosures are the bedrock of fundamental analysis. Without them, value investing would be nearly impossible. |
| * **Enhanced Transparency:** Mandated, standardized financial reporting (like GAAP or IFRS) allows for apples-to-apples comparisons between companies. This transparency is the lifeblood of [[fundamental_analysis]]. | * **Enhances Systemic Stability:** Rules on bank capital, leverage, and market structure reduce the odds of a catastrophic 2008-style financial crisis, protecting long-term investors from systemic chaos. |
| * **Systemic Stability:** Rules requiring banks to hold adequate capital and limit leverage act as a crucial shock absorber for the economy. For the long-term investor, economic stability is far more valuable than short-term, unregulated growth that ends in a crash. | * **Creates Durable Moats:** In certain sectors, regulation erects nearly insurmountable barriers to entry, creating the kind of predictable, long-term businesses that value investors cherish. |
| * **Creation of Durable Moats:** As discussed, regulation can create powerful and long-lasting competitive advantages, leading to the kind of stable, predictable companies that value investors cherish. | * **Protects Against Outright Fraud:** While not perfect, regulatory oversight and enforcement by bodies like the SEC significantly reduce an investor's chances of putting money into a completely fraudulent enterprise. |
| ==== Weaknesses & Common Pitfalls ==== | ==== Weaknesses & Common Pitfalls ==== |
| * **High Compliance Costs:** Regulation is not free. Companies spend billions of dollars on lawyers, accountants, and compliance officers. This money could otherwise be invested in R&D or returned to shareholders. These costs can also disproportionately harm small businesses, entrenching large incumbents. | (The risks and downsides of regulation for investors) |
| * **Regulatory Capture:** This is a significant and insidious risk. It occurs when a regulatory agency, created to act in the public interest, ends up being influenced or controlled by the very industry it is supposed to regulate. This can lead to weak rules that favor big companies and create a false sense of security for investors. | * **Stifles Innovation and Growth:** The "permission slip" culture of heavy regulation can slow down dynamic companies. Compliance costs act as a tax on the business, reducing capital available for innovation and expansion. |
| * **Stifling Innovation:** Heavy-handed regulation can slow down innovation and prevent new, helpful products and services from reaching the market. The perfect balance between safety and progress is difficult to strike. | * **Risk of "Regulatory Capture":** This is a subtle but critical danger where a company or industry becomes too cozy with its regulator, influencing the rules to benefit itself at the expense of competitors and the public. This can create a fragile, uncompetitive environment. |
| * **Unpredictable Political Nature:** Regulations can change with the political winds. An election can bring in a new government with a completely different philosophy, creating uncertainty for industries like energy, healthcare, and finance. This political risk is difficult to quantify but must be considered. | * **Creates Abrupt and Unpredictable Risk:** A single piece of legislation or a court ruling can fundamentally alter an industry's profitability overnight. This "stroke-of-the-pen" risk is difficult to model and can destroy even the most well-researched investment thesis. |
| | * **Fosters a False Sense of Security:** Never assume a company is a "safe" investment simply because it's in a regulated industry. Regulated companies can still be poorly managed, take on too much debt, or fail spectacularly. ((Lehman Brothers was a highly regulated entity before its collapse in 2008.)) |
| ===== Related Concepts ===== | ===== Related Concepts ===== |
| * [[economic_moat]] | * [[economic_moat]] |
| | * [[margin_of_safety]] |
| * [[risk_management]] | * [[risk_management]] |
| * [[circle_of_competence]] | |
| * [[sec_filings]] | * [[sec_filings]] |
| * [[annual_report]] | * [[circle_of_competence]] |
| * [[corporate_governance]] | * [[intrinsic_value]] |
| * [[systemic_risk]] | * [[mr_market]] |