giofranchi

I would like to know why. Imo Seeking Alpha offers a lot of nonsense, but sometimes also really interesting news and articles. Obviously you seem to disagree, and I would like to know why. Thank you, Gio

Apple's next big thing: Augmented reality http://news.investors.com/technology-click/121015-784753-apple-predictions-for-2016-and-beyond-piper-jaffray.htm?fromcampaign=1&p=full Cheers, Gio

Apple CEO Tim Cook Defends Smart Case’s Design http://www.valuewalk.com/2015/12/apple-ceo-defends-smart-case-design/?utm_source=mailchimp&utm_medium=email&utm_campaign=EMAIL_DAILY&utm_content=quick_link Cheers, Gio

Google launches Digital India to showcase the country’s startups — and plug its own services http://venturebeat.com/2015/12/10/google-launches-digital-india-to-showcase-the-countrys-startups-and-plug-its-own-services/ Cheers, Gio

Bad Apple - The company’s ugly, underpowered new iPhone battery case is a sign of trouble in Cupertino. http://www.slate.com/articles/technology/technology/2015/12/the_iphone_smart_battery_case_is_a_very_bad_omen_for_apple.html Any thought? Cheers, Gio

Ok, thank you. Could you please explain how people use internet in China and India, and why GOOG hasn’t penetrated those markets yet? Is it because of the competition with Baidu, or because of something else? Does Baidu work differently? How so? Cheers, Gio

Very interesting article about AAPL's business model! Thank you for posting, Gio

Nice. got a Russell Breweries ad in there too.. synergies! +1! Very nice article! ;) Sanjeev, we run a small clinic downtown Milan, and we are now developing an mhealth platform for online consulting and telemedicine. We work with the San Raffaele Hospital in Milan (one of the largest hospital in Norther Italy). I know you are focused on China and Asia in general (and for very good reasons!)… But, should the European market ever interest you, and you judge I could be of any help in Italy, please don’t hesitate to let me know! All the best, Gio

I wasn’t aware of the fact 11% of Pabrai’s portfolio is invested in GOOG (as of September 2015). http://www.oldschoolvalue.com/blog/resources/mohnish-pabrai-checklist-investor/?source=rss&utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+OldSchoolValue+%28Old+School+Value%29 Does anyone know if he has sold some of his GOOG shares in the last couple of months, following the recent run-up in price? Thank you, Gio

The majority of my assets are in companies that basically are similar to funds (I think of them as I think about the Wealth Index built by Murray Stahl): TDG, CSU, the Liberty family of companies, BRK, MKL, ROP, FFH… Also GOOG can be thought of as a holding company. As far as I know, they all have outperformed the S&P500 during the last 5 years, with the exception of FFH (which I basically own instead of cash). During the next 5 years they might perform much more poorly than they did in the last 5… I don’t know. Are they expensive right now? Maybe. But so is the S&P500. No? Let’s just say I like the way those companies put together their “funds” better than the mechanical way the S&P500 is constructed. The only companies I own right now that don’t fit the description are AAPL and GILD. They both seem to be high quality and cheap, and they both have outperformed the S&P500 during the last 5 years. Cheers, Gio

Of course, I cannot read everything that is posted, therefore if you had been constructive before, I have simply missed it. Now I’ll take a look at your ideas with great interest. ;) I have already answered, but I’ll do it again. I am willing to bet alongside with you: during the next 5 years I am going to do worse that the S&P500… Nonetheless, I like to look at businesses, studying them, and trying to think about which work and which don’t. And I like to write down my ideas and to share them with other people. This is the reason I joined the board in the first place. I find this process not only stimulating, but also useful: 1) I think it helps me very much with the strategic choices I take every day for the businesses I own; 2) I think it might turn out to be very helpful when I’ll finally have the chance to buy a whole business. I have really nothing against generating lots of cash and putting that cash in an index fund, but I guess by so doing I would miss the useful effort of studying other businesses besides those I run on a daily basis. Cheers, Gio

Well, you might be right. And that’s why I always ask which are supposed to be those much better investment ideas. Could you name some ideas you like very much right now? I will be glad to check them out. And if they convince me, I will be glad to dump an idea of Loeb’s and embrace an idea of writser’s! Cheers, Gio

Spekulatius, I have started this thread asking: I am lucky enough to have some businesses which generate cash while needing very little capital expenditures. On the other hand, those businesses could never achieve a large scale, no matter how much money I invest in them. Therefore, I try to buy other businesses that I like at attractive prices. I still cannot buy whole businesses, and the stock market is right now my only feasible choice. I generally find this board to be a good place for exchanging stock market ideas. Now, tell me: if it’s an idea of mine, or if it’s an idea of yours, or if it’s an idea of Loeb’s… what’s the difference? As I have said, we are here to discuss ideas, regardless where they are coming from (at least, I am sure that’s the reason why I am here!). I have said an activist investor like Loeb, especially if he has already succeeded in getting on the board and putting a new CEO at the wheel, might be very helpful in introducing a discipline that was lacking… You might disagree with my idea… You have said that on a cash flow basis BAX looks expensive… I might disagree that cash flow is a good metric to value BAX right now… Anyway, you see? We are not simply “coat tailing”: instead, we are thinking about an investment idea, and trying to communicate our thoughts and conclusions with other likeminded people. As long as this process is done with politeness and respect for all, I am positive it will be fruitful. Cheers, Gio

It is not only internet penetration that matters imo. What about financial literacy? At the following link: http://www.bloomberg.com/news/articles/2015-12-02/three-quarters-of-asian-adults-financially-illiterate-s-p-says we see how 75% of adults in Asia are still financially illiterate… What will happen, when all those people finally become more business savvy? How many new businesses will be born then? And where will those businesses decide to advertise their new products and/or services? Of course, it will take time. But as one of the most efficient advertising machine out there I see much more room left for GOOG to grow. Cheers, Gio

Sorry if this has already been posted. I have just happened to read it, and I agree with most of the things that are said: https://stratechery.com/2015/do-you-trust-larry-page/ Cheers, Gio

Is GOOG at less than 20x forward EPS ex cash really expensive? I know its share price has soared more than 40% this year… therefore, we should proceed with caution… but, internet penetration in China is still only at 50%, in India it is at 30%, in Africa, the Middle East, and other populous parts of Asia it might be even lower… Internet penetration is still barely above 40% worldwide (http://www.internetlivestats.com/internet-users/). There seems to be lots of room for growth in the years ahead, even if other investments of theirs don’t yield any meaningfully profitable result. And the more I read about GOOG, the more I find it to be an extraordinary business. Cheers, Gio

Well, I think that in many cases they strive hard to introduce discipline in the companies they target. And business is giving to customers a product or a service that conveys the best value for the least dollars. To borrow from Malone: it is not rocket science, it is discipline. Therefore, yes: if I understand their rationale, I am willing to follow them. It could be financially very rewarding. Cheers, Gio

As I have said, BAX's low net margins, if compared to other peers, make me think this company has lots of room for improvement in profitability. Furthermore, its low P/S multiple makes me think I am not overpaying, if Mr. Almeida actually succeeds in achieving a profitability that is in line with BAX's peers. Therefore, I don’t think a valuation based on earnings nor cash flow might yield meaningful information here. This being said, I agree the transformation of this company will take time, and there is no real reason to rush in buying its shares. Cheers, Gio

I am sure it is!!... But also very difficult for me to understand what he is saying… Too bad! :( Cheers, Gio

I don’t like to hold cash, but I hold both FFH and BRK instead. If a sell off comes, I’ll be willing to dispose of my FFH and BRK shares, and redeploy the proceedings in companies that I think might perform better in a recovery, AAPL included. Cheers, Gio

Thank you for the explanation. My question, though, remains the same: is the V/MA system a very efficient mean devised by banks to extend credit to consumers effortlessly? If so, why should banks, which already keep for themselves the great majority of the fees involved in any payment transaction, accept to change that system? What’s their incentive? Cheers, Gio

There are 5,441 commercial banks in the US as of Q2 2015 (https://ycharts.com/indicators/us_number_of_commercial_banks). In Europe there are many more banks. Think about Latin America and Asia… Most of those banks issue credit cards and bear credit risk, don’t they? And most of those banks have established relationships with V/MA. It doesn’t not seem an easy thing to do to replace those established relationships, which have been hugely profitable for all the banks involved, with new relationships… But I might be wrong. If instead it is an easy thing to do, V/MA moats might shrink in the future. We will see. Cheers, Gio

merkhet, still remains the fact that any new entrant, if it is to replace V/MA, must create its new network of relationships with banks all over the world. It doesn’t sound as an easy thing to do imo… But of course I cannot be sure… If instead it requires little capital and almost no effort, than V/MA business model might seriously be threatened. This goes well beyond technology: any new entrant must partner with banks on a global scale, displacing the rules and the agreements those banks have become accustomed to dealing with V/MA and introducing new rules and new agreements. To me it seems that lots of work is needed… And why should the banks accept to be bothered with new rules and new agreements? We have seen the already keep for themselves the great majority of the fees in any transaction… It doesn’t seem they have much to gain for this effort of “changing the system”. Cheers, Gio

+1 Cheers, Gio

See HJ's post. Here's another nice summary of who gets what. Thank you, HJ and wknecht! This is very useful. Cheers, Gio