Links🔗: Food for Thought #14

Below you find the most interesting investment-related content and thought-provoking articels I stumbled about in the recent past. Enjoy reads about: streaming, Yodogawa Steel, Online Chess business models and Play Magnus Group,

Must read: Howard Marks with his new memo Coming into focus. Most of the content was already known to me, from reading his book Mastering The Market Cycle (find my book-review here). This fact only reinforces the value of his book(s), since the content (concepts, ways to think, general patterns) stays relevant for many years and decades after the book is written or read. That is in contrast of many daily news (or noise) we read all day.

Re-featured: I recently started to read Seth Klarman’s book Margin of Safety (reviewed in February) for hte second time. I’d like to share the following sentence from the book with you because of its high relevancy nowadays (again). I added some words in brackets.

If a historically accepted investment yardstick [i.e. P/E ratio] proves to be overly restrictive, the path of least resistance is to invent a new standard [i.e. sales multiples].

Margin of Safety, by Seth Klarman

Joachim Klement on Investing about the very special Hong Kong property market in my beloved city where Haunted Houses play an important role for everyone involved.

Swen Lorenz with his newest weekly dispatch about crisis investing skill. (if you want to become a paying member to his world-class content please use my affiliate link)

Marc Rubinstein from netinterest with a new piece buy now and pay later about Klarna, Nutmeg and Kapsi.

Peridot Capital rightfully asks Is Insurance Really a Subscription Service? Nowadays, every IR department wants to sell the company to (potential) investors as a subscription(-like) business asking for subscription(-like) valuation multiples on earnings on (forward) revenue. Such developments call for our highest scepticism.

Valueandopportunity about granting himself the freedom of doing some trading ideas in his portfolio and his new idea Play Magnus Group (online chess).

Value stock geek knows that price and margin of safety still matters, even though buying at low prices did not matter for the last decade.

Undervaluedjapan identifies Yodogawa Steel as a really cheap stock due to hidden assets.

UK Value Investor about the covid lottery and individual stocks performance due to (unforeseen) covid factors.

Prof Galloway about Airbnb.

Valuation metrics: Lawbitrage on Financial stability ratios within its how-to-calculate series. Additionally, lawbitrage looks at valuation metrics with regard to IFRS 16 (leases) — I looked at the matter in my mini-series but this is a very well written article and a reminder to keep in mind while looking at headline figures.

Valuation methods: The footnotes analyst with DCFs and pensions.

Company news

  • Tencent-led group is planning to increase its stake in UMG (exercise its option). Related analyzed companies are
  • Progressive (PGR) reported Q3 results, EpS beat estimates, healthy growth continues.
    • Bloomerg Automation first reported ‘Progressive Third Quarter EPS Misses Estimates‘ and corrected it a few mins later
    • Credit Suisse research concludes, that customers are more stisfied with PGR’s services than with Lemonade’s

Best and happy investing, s4v


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