Links🔗: Food for Thought (#11)

Below you find the most interesting investment-related content and thought-provoking articels I stumbled about in the recent past. Enjoy reads about: wonderful companies, capital allocation, pre-mortems, Grenke, stakeholder value, Nikola, Pandora A/S, SES SA, etc …

Must read: The capital allocation guide for CEOs.

If you missed it: I started a series of Quickies on new companies, take a look! 😉

Broyhill Asset Management with valuable insights regarding investment risk and the illusion of Investing with perfect confidence. I will give their ‘pre-mortem‘ a shot within my investment process, which

(…) means identifying risks in advance and brainstorming potential reasons for failure from the outset.  The easiest way to do this is to simply fast forward across your time horizon, and imagine you’ve lost half of your investment.  Then ask yourself a single question. “What happened?”

Value and opportunity with his Grenke follow up.

Kuppy is Playing the housing recovery.

The footnotes analyst argues for using probabbilty weighted (expected) values instead of most likely outcomes in Most likely profit may not be the most relevant profit.

If you like comparisons between investing/sports/poker: Liv Boeree gave a nice short Ted talk 3 lessons on decision-making from a poker champion. Related:

• Am I a Gambler🎲? And Striking Similarities between Gambling and Investing!
• One of my favorite memos from Howard Marks: You bet!

According to valuestockgeek Many wonderful companies were to be had at wonderful prices.

Ensemble Capital with a second post at intrinsicinvesting.com about stakeholder value.

Nikola founder Trevor Milton to voluntarily step down as executive chairman

Morgan Housel from Collaborative with A few rules and What they’re reading.

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Company updates

Pandora A/S have jumped >60% this year, heading the OMX Copenhagen index, which leads country indexes globally, according to Bloomberg. I like 🙂
(You can find all my Pandora posts HERE)

SES SA released their new investor presentation, including re-profiled investment profile with (deferred CapEx) and updated H2 guidance due to corona headwinds. And:

• SES becomes Microsoft Azure orbital founding connectivity partner.
  I believe that is (very) positive for the long term.
• Some rumors about issuing further (expensive) hybrid bonds to stay below the 3.3x leverage ratio. That would be a negative I guess, but maybe worth it for issuing low-interest senior bonds.

Have a nice weekend and happy investing, s4v

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