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Here Is Why I Bought Vivendi

May 17, 2012 | About:
Chandan Dubey

Chandan Dubey


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)


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 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 - 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 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 - 2 years ago
It is interesting to see everyone justifying Vivendi after Seth Klarman reveals a stake...
Cdubey premium member - 2 years ago
@Balaji: There is no shame in coat-tailing after doing your own research ... :)
Zwiphy - 2 years ago

Henry Schacht was there before Seth Klarman...

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