View profile

Money Center Banks, Screening for Cannibals. Jeff Bezos, Marcelo Lima


Guy Spier

November 17 · Issue #6 · View online
Father, Husband, Value Investor and Author

Money Center Banks.
I have now written a memo on Money Center Banks. The most interesting reaction came from Brian Pitkin of Uri Capital who responded with some excellent material including one titled “Bank of America - a Coiled Spring”.  If you are interested to read it, email me and with his permission, I’ll make an introduction. 
Screening for Cannibals
One way to approach the challenge of picking stocks is to focus on the cannibals: those companies that regularly repurchase their own shares - year after year. 
My suspicion is that companies that are able to reduce the number of shares outstanding consistently while still growing sales and earnings are quite likely to be doing many things right, and are also quite likely to have a good culture. 
American Express is a cannibal and, not surprisingly, so are other Berkshire Hathaway owned companies. Perhaps most interesting to me about my most recent screen is the number of cheap Japanese companies. Ones like Nakano Refrigerator that seem to have started to repurchase their shares. It suggests that Japanese corporate culture might be changing.  
Here is a spreadsheet that I extracted from that screen - which I ran on CapitalIQ. It looks for cannibals whose business is not shrinking and who have also reduced their share-count. 
I think that it is a great starting point in the hunt for great investments. 
As you know, I’m experimenting with this medium. Please email me with your comments on the spreadsheet.
Great Investors
In addition to Brian Pitkin, I was lucky received  a couple more extraordinarily good letters from two professional investors. Both Marcelo Lima and Robert Vinall do careful, in-depth research on original ideas and have excellent returns.  I have no doubt that they will substantially out-perform the the coming years.  
As with Brian Pitkin, email me if you want to be introduced to either Marcelo or Robert.
The Quest for 10-100 Baggers: Mohnish Pabrai's Lecture at Peking University.
Investing in Family-Owned Companies
Jeff Bezos shares his management style and philosophy
President Trump
I took Donald literally, but not seriously. Those who voted for him took him seriously, but not literally. 
This simple idea - paraphrased from the Atlantic summarizes the election for me. What I find most shocking is the number of people who voted for Trump and who did not talk about it. What kind of political culture is that?
Mehlman Election Analysis
Suffering From Trumphobia? Get Over It!
Surprise, surprise, the disconnected plutocrat lost
The Most Powerful Clown
With the future of liberal democracy hanging in the balance, what next?
9 Reasons Libertarians Should Love Switzerland
It's Going to Be Okay - Wait But Why
Global Leadership Foundation
I have been a supporter of F.W. de Klerks Global Leadership Foundation for a couple of years no. Most of the real work is done in secret. 
Here is a rare insight into how former world leaders and nobel prize winners often save countries from full out war:
Mozambique: Mediators Expected in Maputo
Zeitgeist: Andy Denzler in Bellevue.
Andy Denzler
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue
Guy Spier, 18 Rämistrasse, Zürich 8001