Thoughts

In 2001, I arrived in the UK eager to look at leading global companies.

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One was GE, led by the late Jack Welch, who had just published a book, “Jack: Straight from the gut” about his “career running one of the largest and most successful corporations” The stock sold at 15x earnings – seemed fair value for a “wonderful business run by brilliant management” Cash from operating activities of … Read on

I really wish undervalued companies wouldn’t pay any dividends.

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It’s like them investing in a 0% IRR project – they give the money away and get nothing in return No, you’re “rewarding” shareholders with a share of the profits The person who bought the share the day before the Record date doesn’t need rewarding But what about the retirees and funds that need the … Read on

Why don’t you own Microsoft, It’s an amazing business?

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Their Return on Equity is over 42% I know, I wish we had held onto it longer, but it got too expensive for us Anyway that’s ok, I’m sure our clients all hold Microsoft via their other Passive and Active funds and so we’re diversifying their exposure – no point in all their funds owning … Read on

If you’ve spent recent days trying to guess the moves of the Chinese Govt, you’ll have missed Australia’s largest-ever deal

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US$29bn No, no-one acquired Newcrest, one of the world’s largest gold miners at a 70% premium Square bought, “Buy now, pay later” company, Afterpay (AP) They must have some unique technology No, but they do have a great Vision “Fairness & Financial Freedom for all” and Visions aren’t cheap Well I do value Fairness & … Read on

Unilever shareholders took a bath yesterday

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Unfortunately less relaxing than with Badedas Volumes grew 4% & prices rose 1.3% but turnover only increased 0.3% despite 1.4% from acquisitions EPS fell 2%, Free cash flow fell €500m to €2.4bn and they cut their underlying margin outlook But they’re on 20x forward earnings… What happened? Well, last year when we were stockpiling PotNoodle … Read on

I did something yesterday that I’ve never done before.

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No, not bungee jumping or parachuting, I read the transcript of the FOMC meeting Because I know what companies on the ground are saying about inflation But I wanted to see if the Fed still thinks it’s “transitory?” So what did “Chair Powell” say about inflation forecasts & forecasters? “There is no great forecaster of … Read on