2018 Business Review

March 7, 2019   In 2018, our common stock holdings fell by just over 5%.  The S&P 500 and Dow Jones Industrial Average performed about in-line with our stock picks returning roughly -4% to -6%.  As a reminder, we make no attempt to track the indices, and thus our performance will frequently diverge, sometimes to… Continue reading 2018 Business Review

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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

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?