Food for Thought #47 // Links🔗

This time the most interesting content I stumbled over includes: stock exchanges, biases, Nick Sleep, Great Investors, Argentinian cement play,

I picked that stock, so it won’t go down is a well researched investment bias, highlighted by KoI.

NeckarValue’s learnings from the letters of Nick Sleep and Zak Zakaria’s Nomad Partnership in a thread.

AsianCentury answers 11 Questions about stock exchanges, incl. HKEx, SGX.

Chris Mayer with What Makes A Great Investor? There can be many answers to that Question, one is to make one great investment and holding on to it for a long time (needed: trust).

Swen Lorenz with his newest weekly dispatch* on Loma Negra, an Argentinian cement play.

Versus with a great German post Vom Wert der Zeit – Hypoport, Pandora, SNP. It is about the walker (value) and the dog (price). Value should ideally increase over time with high probability, price can fluctuate wildly around value.

Junto with a big Checklist.

Adam Mead sees Capital Intensity As A Source Of Competitive Advantage. I think it is a factor for Mo-BRUK (MBR PW).

Marc Rubinstein from netinterest about a new Brazilian Bank in A Nu Dawn, A Nu Day.

Best and happy investing, s4v


* marks an affiliate: if you want to become a paying member to Swen’s world-class content please use my link. hte price for you is the same. I might receive a referral bonus (money).

5 thoughts on “Food for Thought #47 // Links🔗

  1. Loma Negra looks interesting just not sure I could ever invest in Argentina with currency risk. I own cement in China if of interest.

    You might like the latest Pabrai video as he talks about the Tencent and it’s 2 bazookas. I never like Tencent as in games but Pabrai shows they can move away from China gaming and point investments outside China. They burn all cash on investments so might compound?

    Liked by 1 person

  2. ‘burn all cash on investments so might compound’?
    Investing in Argentina/China (or Russia) might not be that different after all. We perceive the risks very differently, mostly because of recency bias I believe, but is might all be an investment/gamble/bet with Russian roulette (see recent blog post) attributes… 🤔
    With Argentina, we all are at least (too?) aware of the many risks

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  3. In the current low interest rate environment burning cash on investments is good for longterm compounding. Tencent does a better job as this cash is invested in other companies (spawner) rather than planes/trucks like Amazon. Companies like Apple can’t even invest the cash so not doing well at scale compared to Tencent. Yes this thinking is dangerous as in a downturn there is no buffer but if still have heaps a cash from operations and debt not crazy this is better than cash on balance sheet?

    Argentina is hard for me as on average currency collapses ever 10-20 years while China/Russia are risky also just not that extreme. This can be the best opportunity like Pabrai in Turkey. If a company in Argentina gets paid in USD/EUR the risk isn’t bad or it will survive a collapse and you can hold you will do well. I am told there is some German business culture in parts of the country so I would look there first.

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  4. Thanks for explaining.
    I think we can agree on earning cash is great, not burning it. Sometimes burning some might be needed to earn a lot more of it though, but the faslct that it did work wonders for some in the past, is not a guarantee that it will work every time.

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  5. Investing is a complicated process but there are various ways to go about it. Some people prefer to do it themselves while others hire a financial adviser. While the latter approach offers more security for you and your family, the former makes it easier to handle money on your own terms. Whatever you decide, one thing is certain. finding an investor that fits your needs can be difficult.

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