Scorecard # 39 – Get a Grip
As the Oracle of Omaha himself so aptly put it, value investing is simple, but not easy
Scorecard # 37 – The Golden Rule
“Buy quality companies when they are on sale. Avoid leverage, folly and big mistakes that set you back. It is simple, but not easy.”
Scorecard # 25 – Booking.yeah
We made our initial investment in Booking Holdings (Nasdaq:BKNG) in late 2017 and recently added to our position. While we have previously disclosed that we owned the stock, we have not discussed its business in any detail. Here is a snapshot of our investment thesis.
Scorecard #20 – A Money Making Machine
… Value Fund holding Visa, Inc. is the world leader in retail electronic payments. Visa, along with competitor MasterCard, form a global duopoly in the sector. Visa is an incredible business. The company grows steadily without much capital reinvestment required, adds value to both consumers and retailers and is very difficult to compete against. Visa is truly a money-making machine.
Scorecard #19 – Twin Pandemics
… Value Fund holding Novo Nordisk (NYSE:NVO) is the world leader in diabetes care with a global market share of 27% by value (46% by insulin volume). The company was founded in 1925 and is headquartered in Denmark. However, its origins have a uniquely Canadian connection…
Moats
… Moats come in various forms and Morningstar® has done a good job of organizing them into a few helpful
categories
Scorecard #17 – Avoiding Stupidity
… We were inspired to write about Amazon after reading a recent newspaper article touting the stock. The author acknowledged that the company generates razor-thin profit margins and that the stock trades at a “ridiculously high” price-to-earnings multiple (171x to be exact).
Scorecard #16 – Do the Right Thing
… Incentives drive behavior and the senior management of any business is responsible for putting the proper incentives in place and defining a company’s culture by setting the tone at the top.
Scorecard #14 – Inamatus Corus
… Media stocks remain under pressure these days. It all started back in the fall of 2015 with the selloff in Walt Disney Company’s stock (NYSE:DIS) due to subscriber declines in its ESPN division. The stocks of other media companies quickly followed suit.
Scorecard #6 – Apples and Oranges
… The hardest part about value investing is having the discipline to be extremely patient. Attractive opportunities to buy shares of excellent companies on the cheap don’t come along very often. Market panics are a good source but far too infrequent. More often they come in the form of companies that are encountering a temporary problem and the market overreacts.