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2015-07-28

  • beltrancaceres commented on Grahamites's article 07-28 22:18
    Spotting Creation of Value - Additions to The List
    In my previous article on Spotting Creation of Value, I listed the number of ways I have personally observed that a company can create value for...
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    beltrancaceres 07-28 23:18
    • thanks for this, great write up.

      i will have to get this summary -- and recite this as mantra on a daily basis, to ensure it seeps through my bones, so every time i read financial statements, annual reports, transcripts, i'm always on a lookout for evidence of those you listed.
  • beltrancaceres commented on The Science of Hitting's article 07-28 22:12
    Berkshire's GEICO Investment: "Bet Big" (Part 2)
    (This article picks up where I left off last time; see part one here) “It’s not given to human beings to have such talent that they can just...
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    beltrancaceres 07-28 23:12
    • Science of Hitting --thanks for that. that makes so much sense. 

      Snowballbuilder, thanks for summing it up so succinctly.

      on a separate note, I haven't come across a convincing argument of the merits of investing in Valeant for the really long run (notwithstanding the returns it has given so far of course, which is quite amazing), from the point of view of the Value Investing Tradition.

      In fact, Munger does not have kind words to it. I think one way to approach it (and Ackman takes this view) is as a platform strategy -- which explains Transdigm's success thus far. of course, the way the shareholders strip it of equity just to ensure minimum of 15% private-equity-like returns (and thus resulting to negative equity), does not give much comfort. Of course, i haven't seriously looked into it -- maybe you have good resources you can point us to?

       

2015-07-27

  • beltrancaceres commented on Grahamites's article 07-27 22:16
    The Power of Words - Part I
    If all my possessions and powers were taken from me with one exception, I would choose to keep the power of words, because by them I would recover...
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    beltrancaceres 07-27 23:16
    • "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact" the wit, the play on word here is very very interesting, especially for first time readers of Buffett. the 1st time i read it, i was like -- "Say that again...?"

       
  • beltrancaceres commented on The Science of Hitting's article 07-27 22:09
    Berkshire's GEICO Investment: "Bet Big" (Part 2)
    (This article picks up where I left off last time; see part one here) “It’s not given to human beings to have such talent that they can just...
    View all 1 comment
    beltrancaceres 07-27 23:09
    • thanks for that constant reminder, and constant inspiration from Warren Buffett (Trades, Portfolio). the market share increase is surely a massive value boost to Berkshire, and there's likely a good runway ahead of it still.

      One thing to note though is that -- this runway, indeed the idea of auto-insurance, could need rethinking at some point. Google's (and a host of other self-driving software efforts) self-driving project, called Google Chaffeur is touted to be live in 5 years, after some years of test-driving on the road. Google is saying it has never caused any accident, i.e. the self-driving software is 100% accurate -- although the self-driving car met a number of accidents, all of which caused by cars with human drivers that it met on the road (including one incidence where the Google employee shifted to manual driving, and caused an accident).

      GEICO's source of moat are essentially from the fact that: pricing power and regulatory requirement by nearly all states to have some minimum insurance for drivers. the second fact would be in question in case self-driving technology flourishes. But still too much unknown at this point.

2015-07-26

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