Bavaria Industries

Sometimes ideas don't need a lot of explanation.  Value is apparent and the real work comes in determining management quality, integrity, and alignment.  This is one of those. The Basics Let's assume there is a certain investment manager who has about €350 million in assets under management.  This fund manager is unconstrained and therefore has… Continue reading Bavaria Industries



In the public world of insurance, there is no large carrier with an underwriting record worse than AIG's over the past decade.  It's been a dramatic mess. The History A very short reminder of the company's past might ring a few bells in the head of the (two) people who might read this.  I shouldn't… Continue reading AIG

Do Profit Margins Actually Matter?

  I often hear confusion among investors and business people equating high profit margins with high returns.  I understand the confusion.  Returns are all that matter in public markets.  Money begets money which begets money.  The faster that begetting happens, the better.  So when looking at businesses with strong historical returns, we might try to… Continue reading Do Profit Margins Actually Matter?

Naspers – Too Good to be True?

I don't understand the market value of Naspers.  I haven't for two years. Today, Naspers trades at a market value of $98.8 billion.  Naspers owns roughly 33% of Tencent. Today, Tencent has a market value of $419.5 billion.  Meaning that per the market's own pricing, Naspers owns $139.7 billion of Tencent.  Think on that for… Continue reading Naspers – Too Good to be True?