⚡️ Sharpfokus Brief — October 3, 2025
Patriot bonds? Equity investors do it too
We’ve smiled at the new “Patriot” bonds yielding 2%, while Indonesia’s 10-year government bond — our local risk-free rate — is about 6%.
But stock investors often do something similar — without noticing.
Take NVIDIA (NVDA):
• Cashflow return on assets (CFROA) ≈ 35%
• Market value implies a return ≈ 133%
If you translate that into a cashflow yield on today’s $4.6 trillion valuation, you get about 1.1% — far below the risk-free 10-year U.S. Treasury yield of 4.1% and even further below Indonesia’s 6%.
Sometimes we laugh at low-yield bonds… but keep buying even lower-yield equities.
Upgrade → sharpfokus.com/subscribe
Data, not advice ✅
Patriot bonds? Equity investors do it too
We’ve smiled at the new “Patriot” bonds yielding 2%, while Indonesia’s 10-year government bond — our local risk-free rate — is about 6%.
But stock investors often do something similar — without noticing.
Take NVIDIA (NVDA):
• Cashflow return on assets (CFROA) ≈ 35%
• Market value implies a return ≈ 133%
If you translate that into a cashflow yield on today’s $4.6 trillion valuation, you get about 1.1% — far below the risk-free 10-year U.S. Treasury yield of 4.1% and even further below Indonesia’s 6%.
Sometimes we laugh at low-yield bonds… but keep buying even lower-yield equities.
Upgrade → sharpfokus.com/subscribe
Data, not advice ✅