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Hedge Fund Letter Consensus
Q3 2016

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The goal of this newsletter is simple: collect as many hedge fund letters to investors as I can get my hands on and find consensus topics of discussion.

This is the initial prototype issue for the newsletter. A total of 41 letters were used for this report. Forty-one letters is too small a number to extract a real consensus, but I hope to acquire a much larger number of letters for future issues.

Letters are first annotated and undergo natural language processing (NLP) to identity named entities and coreferences (among other tasks) and are then pumped into a text search engine to find consensus topics among all funds. This same text search engine is available to readers to use for possibly finding additional topics of interest. Part of the annotation includes identifying new buys/sells, and existing holdings, fund performance, cash allocation, and key opinions.

Why Hedge Fund Letters?

Hedge funds with over $100 million in investable assets in the U.S. are required to filing quarterly 13F holdings reports to the SEC. These filings provide great insight and should be a part of everyone's research. You can use WhaleWisdom.com to get detailed analysis of 13F holdings and find consensus picks.

13F Limitations: 13F filings have some limitations however. For starters 13F filings aren’t due until 45-days after the quarter close date. Letters to investors are typically more timely than this. 13F filings are limited to long positions in US equities, call/put options/convertible notes and ADRs. So no disclosure of cash positions, international holdings, shorts, real estate, distressed debt, etc. You are missing the complete picture of a fund’s true investment exposure.

Hedge Fund letters don’t necessarily include all investments either, but oftentimes big stakes are disclosed in the letter along with the fund's rationale for choosing them. Hedge Fund Letters also include opinions from the manager on the overall direction of the market and on new investments.

These are the best investors in the world. Reading their letters gives us a glimpse into their thinking and methodology. We can leverage hedge funds' vast resources and knowledge without the associated cost.

The issue is that passive funds make up over 34% of discretionary assets today – a figure that continues to rise at an astronomical rate. If the trend continues, the majority of investable assets in the world will be passively invested in a little more than a decade."

"In the last 20 years, the amount of money invested in passive products have risen 7,270%, to over $4 Trillion today. Passive funds now own 11.6% of S&P 500 companies, compared to 4.6% only eleven years ago."

"The risk with this is that ETFs and other tracking products don’t take into account the most important aspect of investing: valuation."

"the original rational for passive investing – that markets are efficient so trying to beat it is useless – would fail."

"if the trends in passive investing continue at their current pace, we will be close within the next decade or two. At that point, I suspect active investing will be the new “fad” in investing, just as passive investing is today." - Hayden Capital

Capital is rotating out of traditional large hedge funds and into “me-too” ETFs, indexing and retails models. This puts added pressure on the top 10% of the market that is closely watched and picked over. As the saying goes, you can’t outperform the market if you are the market. - JDP Capital
During recent years, the most expensive stocks attracted a dominant share of investment dollars and upward price momentum, while the most undervalued stocks lagged behind. - Euclidean
the modern-ized practice of indexation has distorted “defensive” equity investing. - Horizon Kinetics

This movement away from hedge funds and into actively managed long-only funds and index funds today is another significant warning sign of a possible market top."

"The stock market is at all-time highs and in the eighth year of a bull market. Now, investors are piling out of hedge funds and into index funds? It’s almost certainly the time for investors to be doing the exact opposite!" - Crescat

"There is no doubt that the financial firms that provide passive and indexation financial products have seen boom times like no other."

"The size of the net asset flows out of active strategies and into passive strategies during this bull market is simply staggering."

"at the current junction of this +7½-year bull market, prudence—along with future prospective outperfomance—may well call for firing one’s passive manager and hiring more active managers"

"So what could it be in the current investing environment whereby portfolios that historically exhibit both better growth and profitability have failed miserably to keep pace with the benchmarks, which have posted poorer fundamentals? First, the near -50% collapse in interest rates over the past three years, and the concomitant chase for yield by investors in both the bond market and the stock market, which has pushed higher dividend yielding stocks" "to historically out-sized valuations. And second, is that the typical late-cycle bull market flood out of active investing strategies and into valuation agnostic passive strategies has been a self-fulfilling prophecy, as it were, propelling indices to ever higher valuations and outperformance, which in turn attracts even more performance-chasing asset flows - Wedgewood

The Move into Index Funds and out of Managed Funds

A commonly discussed topic this quarter with the consensus (naturally) being that investors are better off going with actively managed funds, especially at this point in the business-cycle. There is concern that continued inflows into index funds have led to an over-valuation at the top despite declining fundamentals.

Market Outlook

Almost all agree that the overall market is over-valued and that it is getting tougher to find undervalued investments

We are clearly in the late stages of a business cycle following an eight year (tepid) expansion - Third Point LLC
If our assessment of the situation is correct, the market – as a whole – is expensive. If and when market participants come to the same conclusion (like they did during the dot-com bubble and the great financial crisis), many would try to go through a narrow door all at the same time - FPA Capital
There is some evidence that we are emerging from the longest period in recent history of growth outperforming value. - Euclidean
with interest rates at historic lows, it’s unlikely that the market’s P/E ratio will expand much further. This means that future gains will need to come from growth in the “E” portion of the equation. - Hayden Capital
The data continues to indicate the market is at or near all-time high valuations, which translates to low return expectations for the average investor going forward 5-10 years. - Meson Capital
I continue to believe that our economy will muddle along and interest rates will likely rise. - Greenhaven
As interest rates are at historical lows, they have only one way to go. And as we know, rising interest rates are not conducive to rising valuations. So it isn’t beyond the realm of possibility that we could be at the beginning of a long period of multiple contraction in the indexes. - Starvine
With QE, Brexit, euro banking weakness, strife in the Middle East, and a distinct shift to populist politicians (President Trump, anyone?), investing long term savings for the next decade looks to us like a risky endeavour. - Kennox

The equity markets are being driven by a search for yield"

"What we are truly experiencing in the current zero yield market environment is an expression of emotion rather than an expression of intellectual understanding. Investors globally are telling us that they are too fearful, skeptical and indelibly scarred to put capital at risk. - T11

much of the focus in the U.S. large cap growth space has been on a reach for yield that can lead to high valuations - Jensen
As interest rates declined to historically low levels and investors searched for yield in the equity market, defensive stocks with “bond-like” characteristics outperformed the more cyclical stocks. - Dodge and Cox
investors continue to prefer equities over low-to-negative yielding fixed income instruments. - Tweedy Browne
Yield-hungry investors and ETFs/index funds have bid up the prices of stable cash-producing companies to the point where there is no margin of safety, - Greenhaven
Record low interest rates engineered by the world’s leading central banks have created an almost desperate search for yield. This monetary stimulus has caused supposedly defensive, higher dividend-yielding stocks to become dangerously overvalued. - Vulcan Value Partners
The Fed’s decision to once again postpone any interest rate hikes has helped to set off yet another wave of yield seeking from investors. - Polen

The Search for Yield

Investors search for yield has led to over-valuation in many high-yielding sectors such as Utilities and Telecom and is forcing more risk-taking.

Negative Interest Rates

There was a lot of discussion on this topic. Is it the new normal? the BOJ introduced negative interest rates, Germany and Switzerland began to sell negative-yielding bonds, interest rates around the world are near zero. Hedge fund managers are trying to make sense of it all.

Our concern remains that all-time low interest rates have artificially inflated a broad array of asset prices - Cowan
The lack of market volatility and low risk-free rates of return, as evidenced by negative yielding government bonds, has created a tricky environment to invest in. - Greenhaven

In the 5,000- or so year-history of interest rates, now is the first time we have experienced negative rates."

"We are not convinced that these experiments will end well"

"We worry that the growth in money printing and credit availability, combined with a lack of growth in GDP and high asset valuations, is like a powder keg with a fuse of unknown length." - FPA Capital

"low/negative yields erode and in some cases destroy historical business models which foster savings/investment and ultimately economic growth."

"As central bank purchases grow, and negative/ zero interest rate policies persist, they will increasingly inhibit capitalism"

"Central bankers have fostered a casino like atmosphere where savers/investors are presented with a Hobson’s Choice, or perhaps a more damaging Sophie’s Choice of participating (or not) in markets previously beyond prior imagination. Investors/savers are now scrappin’ like mongrel dogs for tidbits of return at the zero bound. This cannot end well." - Bill Gross

Abnormally low interest rates diminish banks’ profits, have a negative effect on their capital strength, and thereby reduce their willingness and ability to lend money."

"Some might even like the situation as negative interest rates allow for reducing debt generally, but this will be paid for dearly by eroding the real value of people’s savings."

"Today’s level of interest rates is markedly damaging the economy and hindering its growth. Abnormally low interest rates decrease consumption as they force people to save larger portions of their incomes because returns from savings are low."

"Abnormally low interest rates decrease interest costs on national debt and therefore provide governments with a false sense of security and comfort."

"The longer rates remain at an artificially maintained low level the more damage they cause." - VLTAVA FUND

Hidden by the great bubbles of 2000 and 2007, another, much slower-burning but perhaps even more powerful force, has been exerting itself: a 35-year downward move in rates, which, with persistent help from the Fed over the last 20 years and a shift in the global economy, has led to a general drop in the discount rate applied to almost all assets."

"The current fad for the Fed and central banks trying to influence the economy through lower rates is also unlikely to go away entirely, even over 20 years." - GMO

Increasingly, in economies around the world, the price of money is being distorted. - First Eagle
We are more than seven years into an economic recovery, yet central bankers behave as if we’re still in crisis. Not only are experimental emergency policies being maintained, they are being expanded despite little evidence that they are needed or helpful. - Greenlight

Global central bank monetary stimulus has only served to date in creating the biggest financial asset bubble of our lifetimes."

"We will soon be entering a period of rising inflation and perhaps even rising interest rates. Inflation is ultimately the only way that the world can reconcile the unsustainable Global Debt to GDP Bubble as well as the Financial Asset to Income Bubble."

"In the current environment of negative real interest rates, investors will need to take risk, not only to build wealth, but just to preserve capital by staying ahead of inflation." - Crescat

Monetary Supply Growth

Related to the problems brought on by negative interest rates, the Money supply is being distorted. The Global Monetary Supply continues to grow diluting holders of debt

U.S. Election Thoughts

Most fund managers stayed clear of expressing opinions on politics and the U.S. election. Niels Jensen of Absolute Return Partners did not and offered some very interesting points.

we may see surprises on Election Day. - Third Point
Populism and anti-globalization forces have spread like wildfire, and for some odd reason, the world believes complicated topics are somehow best left up to voters relying on 10-second sound clips to make a decision. - Greenwood Investors
I am not saying that all Americans are stupid – only that one of the presidential candidates is! How can you take a man, who plans to build a 2,000 mile (3,200 km) long wall between Mexico and the US, seriously? - Absolute Return Partners
As the US economy already benefits immensely from very business-friendly laws when compared to other developed markets, one shouldn’t really expect it to make a massive difference, whether Clinton or Trump wins. That - Absolute Return
the inclination amongst many US voters to vote for Trump looks to me to be a vote against the establishment over there. People have simply had enough of the elite, who continue to grab whatever they can get away with. Absolute Return
Selecting Trump as the next US president would be a cry for change, just like the Brexit referendum was a plea for change in the UK, - Absolute Return
Assuming his current policy programme is implemented, debt-to-GDP will rise quite dramatically under Trump’s leadership, but Clinton’s programme isn’t exactly inexpensive either so, in that respect, the two candidates don’t really offer anything meaningfully different. - Absolute Return
the actual cost of Trump’s policy programme appears to be a great deal higher than he is prepared to admit - Absolute Return
Could the Americans be about to make the same mistake? Could the Americans possibly go for Trump, not because they think he is the best thing since sliced bread, but because Clinton - if at all possible – is even less popular, and because they (mistakenly?) think that a life with Trump will be better? - Absolute Return
A Trump victory would almost certainly lead to rising interest rates and a falling US dollar - Absolute Return
Wells has suffered deep reputational damage and we will keep a watchful eye on the remedies proposed by management , but we believe Wells remains an attractive franchise with a low valuation. - Ruane, Cunniff & Goldfarb Inc

We know many of the senior executives at Wells Fargo and believe they are people of good character ."

"We do not think the current situation indicates a systemic problem with the values of the organization or its people and we are convinced that changes are underway that will remove the incentives that caused the problem"

"Despite our expectation for slower growth , the market has [ in our opinion ] overly punished the stock and this is a very inopportune time to sell Wells Fargo" - Mairs & Power

Wells Fargo

With regard to the Wells Fargo fake customer account scandal, several hedge funds voiced their opinion on whether or not the stock remains a good investment. At least 4 hedge funds we have letters for still held Wells Fargo at the end of the third quarter

Complete Results

Performance

Performance for Quarter

Performance YTD

Cash Allocation

Activity

New

PPG
Axalta
Ameriprise (AMP)
Calloway’s Nursery
Expedia, Inc.
Rollins, Inc.
Vantiv, Inc.
Gaia
long VMware and short VMware pair trade
Alphabet Inc. (GOOGL)
TreeHouse Foods
Dentsply Sirona
Dollar General Corporation

Added to

Baidu (BIDU)
Credit Acceptance (CACC)
Anadarko Petroleum
Bank of America
Goldman Sachs
JPMorgan Chase
MetLife
Core Labs
Visa
Alphabet
AGCO Corporation

Trimmed

Berkshire Hathaway
Amazon
Cimpress (CMPR)
Halliburton
Hengdeli Holdings
Henkel KGaA
Inovalon Holdings, Inc.
LKQ
Mead Johnson
Service Stream
SS&C Technologies
T. Hasegawa
Teleperformance
TJX Companies
Tractor Supply Co.
Willis Towers Watson Public Limited Company

Sold Out

Daegu Department Store
Diamond Resorts
Evonik
Fastenal Company
MTS Systems (MTSC)
Nihon Kagaku Sangyo
Norwegian Cruise Line
Oracle
PCB Group
Philip Morris Int
Philips
Shinko Shoji
SM Energy Company bonds
Trimble Navigation
Vodafone (VOD)
Walmart

Largest Holding

Only a few funds identify their asset allocation % or mention which holding is the largest in their portfolio.

Oracle (3 separate funds)
Apple
Berkshire Hathaway Cl A & B
Newmont Mining
American Tower
Fortress Investment Group
Unilever/Diageo/Nintendo all 7.5% of one fund
AerCap/Apple/CONSOL Energy/General Motors/Gold
SAFRAN SA
ROCHE Holding AG
HEINEKEN
NESTLE
TENCENT Holdings ltd Short
Western Digital
HeidelbergCement AG
Microsoft
Capital One Financial/Bank of America/Hewlett Packard Enterprise Co
Insignia Systems
MMAC Capital Management
Pepsico
EXOR
IDEXX Laboratories

All Holdings

Name
3M Co
AARON S INC
ABB
ABS-CBN Holdings Corp. (ABSP PM)
Accenture Plc
ACCO Brands
ADT
AEGON
AerCap
AGCO
AKZO NOBEL NV
ALCOA INC.
ALJ Regional (ALJJ)
Alleghany
ALLY FINANCIAL
Alphabet
Amazon
AMERICAN EXPRESS COMPANY
American International Group
American Tower (AMT)
Ameriprise (AMP)
Amphenol Corp
Anadarko Petroleum
Analog Devices
Anixter International
AON PLC
Apache
Apollo Education
Apple
Arch Capital Group Ltd
ARIS
ARROW ELECTRONICS INC
ATWOOD OCEANICS INC
AVNET INC
Axalta
AXEL SPRINGER
BABCOCK + WILCOX ENTERPR
Baidu (BIDU)
Bank of America
Bank of America (A warrants)
Barrick Gold Corporation
BASF
basket of cheap community banks
Becton Dickinson And Co
Berkshire Hathaway
Best Buy
BFC Financial (BFC)
Bouygues SA 0.00%
BP
Calloways Nursery
CANON MARKETING
Capella Education ? CPLA
Capital One Financial Corp.
Carmike Cinemas (CKEC)
Carrols Restaurants (TAST)
Charles Schwab
Charter Communications
Chemours (CC)
Chesapeake Energy
Cigna
CIMAREX ENERGY CO
Cimpress (CMPR)
Cisco
CIT Group
Citigroup
CK Hutchison
CNP Assurances
Coca-Cola Co
Cognizant Technology
COMCAST
Compania Cervecerias Unidas
Concho Resources
CONSOL Energy
Constellation Software Inc 5.52%
Core Laboratories
CRA International
Cray Inc.
Credit Acceptance (CACC)
CUBIC CORP
Daegu Department Store Company
Daily Mail
Dana
DBS GROUP
Deckers Outdoor
Delta Lloyd
Dentsply Sirona
DEVON ENERGY
DEVRY EDUCATION GROUP INC
DIAGEO
Dollar General Corporation
Donaldson Co., Inc.
Ecolab Inc
El.En [Elengroup]
ESTERLINE TECHNOLOGIES CORPORATION
EXOR.
Expedia, Inc.
Express Scripts
EXXON
FactSet Research Systems, Inc.
Fastenal Co
FedEx
First Pacific Company Ltd. (142 HK)
Fiserv, Inc.
FleetCor Technologies, Inc.
FOOT LOCKER INC
Fortress Investment Group (FIG)
Fujikon
FUKUDA DENSHI
G&K Services (GK)
G4S
Gaia
Gartner, Inc
GAZPROM OAO - ADR
GBouygues
General Electric
General Mills, Inc.
General Motors
GHeidelbergCement
GLAXOSMITHKLINE
gold
Goldcorp
Goldman Sachs
Graco, Inc.
GRexel SAG
GROUPE BRUXELLES LAMBERT S.A.
GSMC Corporation
GSompo Holdings, Inc.
Guidewire Software, Inc.
HALLIBURTON
Halogen Software
HeidelbergCement
HEINEKEN HOLDING
HELMERICH + PAYNE
Hengdeli
Henkel
Henry Schein, Inc.
Hewlett Packard Enterprise
Hormel Foods Corp.
Houghton Mifflin Harcourt
HP Inc.
HSBC
HYUNDAI MOTOR
IBM
Iconix Brand Group
IDEXX Laboratories, Inc
IDW Media (IDWM)
Illumina, Inc.
IMPERIAL BRANDS PLC
Inovalon Holdings, Inc.
Interactive Brokers
Interdigital
International Game Technology (IGT)
Intrawest Resorts Holdings (SNOW)
JARDINE STRATEGIC HOLDINGS LIMITED
Johnson & Johnson
JPMorgan Chase
Kao
KFS
KIA MOTORS
Krones
KT&G Corporation
LafargeHolcim
Lands End
Lear Corporation
LEGG MASON, INC.
Lehman Brothers Capital Trust Preferred shares LEHct
LENTA LTD 144A*
LEUCADIA NATIONAL CORPORATION
Liberty Broadband (LBRDA)
Liberty Interactive
Lindblad Expeditions (LIND / LINDW)
Linde
Linear Technology
Name
LKQ
London Stock Exchange
long VMware and short VMware [pair trade]
LPL FINANCIAL HOLDINGS INC.
LUKOIL OAO - ADR
MarketAxess Holdings
MASTERCARD
Mead Johnson
MEGGITT PLC
MEI Pharma (MEIP)
MetLife
Mettler-Toledo International, Inc.
MICHELIN
Microsoft Corporation
MMAC Capital Management (MMACM)
MMC NORILSK NICKEL OJSC - ADR
Mohawk Industries 4.90%
Moleskine SpA
Mondelez
Munich Re
NASPERS LIMITED - N SHARES
Naspers/Tencent Pair Trade
National Bank of Canada
Navistar bonds (various issues)
Neopost
NESTLE
NetApp
Newmont
NEXEO SOLUTIONS - FOUNDER SHARES
NEXEO SOLUTIONS - PIPE SHARES
Nike Inc
Nintendo
Noble Energy
NOVARTIS
O'Reilly Automotive Inc
OCCIDENTAL PETROLEUM
Oracle
Orbital ATK
OSHKOSH CORP
OWENS-ILLINOIS
PATTERSON UTI ENERGY INC
Paypal
Pearson
Pentair Ltd.
Pepsico Inc
Philip Morris International
Piaggio
PIH
Pioneer Natural Resources (PXD) [Short]
PPG
Praxair Inc
Precious metals
Priceline
Principal Financial Group
Provident Financial
Qualcomm
Radisys (RSYS)
Rallye SA (RAL FP)
Rand Worldwide
RELX
Revlon (REV)
Rexel SA 0.00%
Roche
Rollins, Inc.
ROSNEFT OIL COMPANY - REG S GDR
Rowan Companies plc (RDC)
Royal Dutch
Safran
Sanofi
SCOR SE
Service Stream
Shiseido
short position in Volkswagen
Siemens
SM ENERGY CO
SM ENERGY CO call option
SMC Corporation
Sol SpA
Sompo Holdings
SOUND HOLDINGS FP
Sprint
SS&C Technologies Holdings, Inc.
St. Jude Medical, Inc.
Standard Chartered
Starbucks Corporation
STATOIL
Stericycle
SURGUTNEFTEGAS
Symantec
T. Hasegawa
T. Rowe Price Group Inc
Taisho
Target Corp.
TE CONNECTIVTY
Telecom Italia
Teleperformance
Teradata Corporation 0.00%
TerraForm Power (TERP)
Tesla (TSLA) [short]
THE BANK OF NY MELLON
The Charles Schwab Corp
The Priceline Group
THERMO FISHER SCIENTIFIC INC.
Tiffany & Co
Time Warner
TJX Companies
Toro Co.
TOTAL SA
Tractor Supply Co
TreeHouse Foods
Twenty-First Century Fox
U.S. Bancorp
U.S. FARMING REALTY TRUST I, L.P.
U.S. FARMING REALTY TRUST II, L.P.
Umanis SA
UNILEVER
Union Pacific
UNITED OVERSEAS BANK
United Technologies Corp
Unitedhealth Group Inc
Vail Resorts
Valspar Corp.
Vantiv, Inc.
VEECO INSTRUMENTS INC
Verisign, Inc.
Verisk Analytics, Inc.
VERIZON
Visa
Vista Outdoor Inc
Wells Fargo
Western Digital
WESTERN UNION
Weyerhauser Company
Willis Towers Watson Public Limited Company
WL ROSS HOLDING CORPORATION - LLC INTEREST
WMIH
WPP PLC
Xilinx
YAHOO
Yamana
Zurich Insurance
[bond] BOMBARDIER 144A
[bond] CALIFORNIA RESOURCES CORPORATION
[bond] CALIFORNIA RESOURCES CORPORATION 144A
[bond] CONSOL ENERGY
[bond] GLENCORE FINANCE CANADA 144A
[bond] GLENCORE FUNDING LLC 144A
[bond] ISTAR FINANCIAL INC.
[bond] NAVISTAR INTL CORP
[bond] NAVISTAR INTL CORP CV
[bond] RELP-10
[bond] RELP-11
[bond] RELP-8
[bond] RELP-9
[bond] RICE ENERGY INC.
[bond] SHIP LOAN PARTICIPATION
[bond] SHIP LOAN PARTICIPATION II
[bond] SOUTHWESTERN ENERGY CO.
[bond] SPRINGLEAF FINANCIAL SERVICES
[bond] WALTER INVESTMENT MANAGEMENT CORP.
[bond] WALTER INVESTMENT MANAGEMENT CORP. CV
[bond] WALTER INVESTMENT MANAGEMENT CORP. TL
[derivatives/futures] EUR CURRENCY 12/23/16
[derivatives/futures] JPY PUT 03/24/22 95.00
[mortgage backed security] STANWICH MORTGAGE LOAN TRUST SERIES various
[mortgage backed security]SUNSET MORTGAGE LOAN COMPANY varios
[short] CARE CAPITAL PROPERTIES
[short] PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
[short] PITNEY BOWES INC.
[short] TENCENT HOLDINGS LIMITED
[short] VENTAS
[short] W.W. GRAINGER, INC.
[short] YAHOO! JAPAN CORPORATION

Famous Quotes

Hedge fund managers often include famous and inspirational quotes in their letters.

Below are ones included in 3rd quarter letters.

Inflation is as violent as a mugger, as frightening as an armed robber, and as deadly as a hit man. Ronald Reagan
Dave Pell, editor of NextDraft: It’s pretty amazing that we live in an age when a CEO of two public companies can give a talk about colonizing Mars and shareholders don’t see that as a warning signal.
All experts are experts for things that did happen. There are no experts for things that may happen. David Ben-Gurion
Warren Buffet has been quoted as saying, I would much rather earn a lumpy 15 percent [return] over time than a smooth 12 percent."
Tom Petty will close this letter for us: “The waiting is the hardest part. Every day you see one more card. You take it on faith, you take it to the heart. The waiting is the hardest part.”
Too much of a good thing can be wonderful! Mae West
The stock market is a giant distraction from the business of investing. ---- John Bogle
“Losers have goals. Winners have systems” ~ Scott Adams, creator of Dilbert
“The years say what the days cannot tell.” -Ancient Chinese proverb
but as Charlie Munger says “all intelligent investing is value investing”
“This is the way the world ends, not with a bang but a whimper,” T.S. Eliot, The Hollow Men.
“It’s not what you look at that matters, it’s what you see “ Henry David Thoreau
“The purpose of business is to create and keep a customer” Peter Drucker
Create a big dream. Keep it simple, easily understood, and measured. Attract the right people who work well together. Measure results consistently. You can create, run, or improve anything with this formula. Jorge Paulo Lemann
“We don’t wait for external pressures. We are internally driven to improve our services, adding benefits and features, before we have to. We lower prices and increase value for customers before we have to” Jeff Bezos
“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient” Jeff Bezos
“Take a long-term view and the interests of customers and shareholders align” Jeff Bezos
“Your margin is my opportunity.” Jeff Bezos
In his own tribute upon hearing of the person’s recent death, actor/director/producer Mel Brooks said: In another era, his Harpo Marx-like mop of golden hair, his slight physique and his soft, almost lisping voice might have hindered a career as a leading man. But I found him a natural an Everyman with all the vulnerability showing.? He continued by saying, One day G-d said, Let there be prey, and HE created pigeons, rabbits, lambs and Gene Wilder.
In Donald Trump, Americans have finally found a man too stupid even for them. David Millward, Daily Telegraph
We align with the Seth Klarman view of the world, in which he describes value investing as: “a comprehensive investment philosophy that emphasises the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and avoid crowd psychology.”
Klarman, has summed it up nicely by noting “you don’t become a value investor for the group hugs”
“A ‘No’ uttered from the deepest conviction is better than a ‘Yes’ merely uttered to please, or worse, to avoid trouble.” -- Mahatma Gandhi