John Chew asked me to post while he goes through his stem cell transplant. He says, “I’ll be back.” He thanks the many readers for their kind words of encouragement.
His hospital roommate. John may opt for a radical new therapy.
Unfortunately, John challenged the status quo so he may have to be hospitalized longer. Sign up to Farnam Street Blog
Novagold Annual Report 2015 This annual report’s shareholder letter including the links provides an excellent example of how several investors view the capital cycle for an asset. History does provides a guide.
http://latticework.com/featured/ Worth a look
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10 THINGS WE’RE READING & WATCHING:
3. 3 Critical Things An Investor Needs – Capital Exploits
4. Superior Investing Insights Through Effective Thinking – Brian Hertzog
5. Unique Behind The Scenes Look Into Buffett’s Process – Vintage Value (must read)
6. Andy Groove And The Iphone SE – Ben Thompson
7. How Maritime Insurance Built Ancient Rome – Priceonomics
8. Should You Buy A Company After A Dividend Cut? – ValueWalk
9. How Buffett And Munger Differ In The Way They Think – Outlook Business
10. Podcasts: Conversation with Bethany McLean A fantastic interview for aspiring analysts. Her book on Fannie and Freddie seems like a must read!
Ackman: PSH-Annual-Report-12.31.151 See the section on Valeant.
A short summary of the tug of war over Valeant. Setting aside the noise about fraud, greed, and accounting issues, The Valeant Casino, this is a company that financed fast asset growth with cheap debt (at the time) while taking advantage of the flawed quasi-socialized medical system in the US. Valuation depends on a normalization of true long-term cash flows–VRX_Update_StillOverpriced_2016-03-15 and EV_EBITDA_Misses_the_Point (View video on valuation and ROIC below for more context). The beneficiary of medical care does not DIRECTLY pay ALL of the costs. Who would be willing to accept a $1,000 tube of anti-fungal cream for their itchy feet if a third-party didn’t pay? See Dying with dignity.
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