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Here Is Why I Bought Vivendi

May 17, 2012 | About:
Chandan Dubey

Chandan Dubey

97 followers

About the author:

Chandan Dubey
I invest because I want to be free by the time I reach 40 years of age i.e., 2025. My investment style is to find a small number of bets with large margins of safety. I pay a lot of attention to management and their incentive. Ideally, I like to buy owner operator businesses. I am fortunate to have a strong inclination towards studying. I aid my financial understanding by extensive reading in psychology, economic, social sciences etc.

Rating: 4.5/5 (25 votes)

Comments

yams4112
Yams4112 - 2 years ago
chandan, how old are you?

you say you want to have invested income by age 40.

I am 28 and I would also like to have financial independence.

i'm just curious.
Josh Zachariah
Josh Zachariah premium member - 2 years ago
Great article and I agree with you on the cheapness of the stock, but just to play devil's advocate the SFR business is probably not worth €18 billion today. When Vivendi purchased Vodaphone's stake I don't think the parties expected Iliad (SFR competitor) to perform as well as it has of late.

Josh Zacharah
cdubey
Cdubey premium member - 2 years ago
@Yams: I am 28 too !

@Pepper: Probably. But as you point out, I do not have to be correct. I am sure the value of Canal+ and Universal music will cover the gap and some more.

donale
Donale - 2 years ago
I'am also long vivendi (nice CF, nice dividend)

but im not a fan of levy's work...

while he sold some non-cores he managed to make more debt.

he bought SFR at a way to high price, and is struggeling now with FREE's low-price politic.

(FREE from Iliad has the same Moat as GEICO at BH - low price)

SFR is about 38% (!) of the EBITDA of vivendi ... and they look to me, as they realy dont know how to handle competiton ...

Levy fired the CEO and set hisself in charge. looks a bit narcissistic to me... but ok...

Good thing is, a Vodafon Manager whil be the CEO of SFR next.

on the other hand side, if everything would be nice and bright, the price wouldnt be that low
cdubey
Cdubey premium member - 2 years ago
It will be interesting to find out why Iliad has such a low price. Orange, Bouygues and Vivendi are all struggling because of the upstart. I should look into the business model of Iliad in more detail. Given that the other three have a very diverse business (well except maybe Orange), I don't see why they can't compete with Iliad.
balajisridharan
Balajisridharan - 2 years ago
It is interesting to see everyone justifying Vivendi after Seth Klarman reveals a stake...
cdubey
Cdubey premium member - 2 years ago
@Balaji: There is no shame in coat-tailing after doing your own research ... :)
zwiphy
Zwiphy - 2 years ago


Henry Schacht was there before Seth Klarman...

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