Thoughts on Fossil Fuels and Global Warming

Despite conferences on climate change, billions spent on research, glossy brochures, and public awareness, we haven’t made notable progress reducing CO2 emissions from fossil fuels.

Rubicon: Surprising to the Upside on All Fronts

The company is guiding for 20% revenue growth and 13+% take-rates, while maintaining roughly one-third of the market cap in net cash.

Liquidity Services: Cash and GovDeals Exceed Market Cap

RAM’s thesis has been anchored in the GovDeals business, the largest online liquidation marketplace for municipalities in North America.

Sports and Investing

As I continuously switch from skiing to stocks and back again, I keep thinking about what cross-country skiing and investing in stocks have in common. There is actually quite a lot.

Why Berkshire’s Approach Is So Hard

Of all the value investors, Warren Buffett, Charlie Munger and Li Lu are the ones we admire the most because we think they represent the highest level of value investing. Why?

Investing in India: Applying the Lessons Learned

Do we deserve what we are seeking? Howard Marks said it best, “To get superior returns, one needs to be different and be right.”

In-Depth Investment Thesis Update on Rosetta Stone

Rosetta’s business model has transformed to a 100% SaaS-based company with 5+ million paid subscribers and projected to grow by 700,000 to 1 million new subscribers per year.

The Art of the Sale

Investing includes aspects such as scouting for ideas, screening them, research (including scuttlebutt), valuation, portfolio allocation, and efficient execution of trades.

Update on Our Holdings in Korea

We are still in the process of selling some of our portfolio companies and replacing them with new-found undervalued companies.

Sierra Wireless: Benefiting from Sustained Industry Growth

The company is in front of a sustained period of industry growth and, as such, will do well as a going-concern and, at the same time, remain a likely acquisition target.

Capital Allocation, Corporate Governance, and Investor Relations

I recently attended a meeting hosted by one of our largest holdings, and afterward the CEO asked for my thoughts.

Learnings From India’s Mini-Lehman Crisis

India had its mini-Lehman crisis when one of its infrastructure behemoths, IL&FS, defaulted on loans in early September 2018.

Korean Market Offers Opportunity After Tough 2018

After last year’s market decline, the environment has turned in favor of value investors, as indiscriminate selling provides opportunity.

ZAGG: Smartphone Accessory Company at ~20% FCF Yield

At $9.60 per share, we paid 0.5x EV/Revenue, 3.7x EV/EBITDA, and a P/E of 6.2x (all are based on 2019 estimates). ZAGG should generate a ~20% FCF yield.

An Update on Our Investment in Ambac

Ambac reached two milestones by removing the segregated account from habilitation and exchanging its outstanding auction-market preferred shares for surplus notes.

My Investment Thesis on Trupanion

TRUP is a founder-led, simple one-product-one-geography business with single-minded focus on a niche service. TRUP has a superior value proposition.

Enzo Biochem: Multiple Shots on Goal at Recent Price

The company has won settlements/royalty payments of $100 million ($67 million net) over the past several years, highlighting its rich IP assets.

Elliot Turner’s Ideaweek Journal

Ideaweek St. Moritz 2019 easily holds up as one of the most intellectually invigorating experiences of my life.

An Update on Our Investments in Building Products Companies

Armstrong shares fell in 2018 but the company is performing in line with our expectations. Prospects have improved in a few important ways since we first invested three years ago.

My Investment Thesis on TripAdvisor

One- and two-sided network effects and a globally trusted, top-of-funnel, brand strongly position TripAdvisor to take an outsized share of the growing global online travel market.

Twenty Years of Opportunistic, Deep Value Investing

While most investors pursue “great companies,” we look for deeply mispriced securities. We speak and think in only one language—opportunistic, deep value.

An Update on Our Investments in Airlines

If good investment ideas are said to be found in the gap between perception and reality, the airline industry has several candidates for the hall of fame.

My Investment Thesis on ITE Group

ITE is involved in one business activity: it organises exhibitions and conferences. Management is targeting (and is over-executing) high single digit revenue growth.

Discovery Holdings: A Two-Year Research Project Culminating in a New Investment

Investors often talk about Kahneman and Cialdini in their processes; Discovery is actually using those principles to change behaviour.

Multiple Fears Converge

If an investor were convinced that a recession was approaching and he or she had to own stocks, utilities and consumer staple names have traditionally been considered safe havens (rightly or wrongly).

Update on Our Investments in Community Banks

I remain optimistic on OceanFirst’s prospects, as well as the opportunities in the sector overall.

My Investment Thesis on GYM Group

Gym Group enjoys a cost advantage facilitated by superior asset utilisation and a long runway for value accretive asset growth.

On Self-Awareness and Business-First vs. Security-First Investors

A business-first investor considers a business and then looks if the securities are attractive. A security-first investor considers the business second, if at all.

My Investment Thesis on Amerco

Amerco ticks all the boxes of a reinvestment moat, stewarded by excellent long-term business owners and capital allocators, and trading at a modest multiple of normal earnings power.

What Cannabis and Crypto Have in Common

I have thought about the business model [of cannabis companies], which was imposed by the government, and I have to confess that I’m puzzled by it.