giofranchi

Hi Scott, I keep seeing bearish articles about Wayfair… You have already made lots of money in Wayfair, and I know that just like me your portfolio is made of 15-20 companies that you like… Now let me ask: do you think it is worthwhile to hold a “battleground” stock? If you like Wayfair long term prospects very much, what’s the risk involved in watching from the sidelines for a while? At least until this bear raid is over? You might end up missing some of the upside… But you would still be able to reinvest later and catch most of the value Wayfair will create over the long term. Am I wrong? Cheers, Gio

And don’t forget that those who are under 25 today will be 35 ten years from now… If used to carrying around their iPhones, they simply won’t stop doing so. Therefore, Apple’s customers will grow also because those who don’t use the iPhone so extensively today (over 35-40 years old) will instead be using it tomorrow. Cheers, Gio

+1 Another company that is very high quality imo and very cheap too right now is GILD. But I agree: not as high quality as AAPL! ;) Cheers, Gio

A basket of owner-operators (focusing not only on the quality of management, but also on the quality of the businesses they own)? Not my idea! Ask Murray Stahl! ;) Well, Valeant was the very first company I had invested in that was accused of fraud… I admit I didn’t know what to think nor how to react promptly. Lesson learnt. Even if some turn out to be poorer businesses than I had thought, if the remaining 10-15 perform well, results could be satisfactory indeed! I look for quality and I am willing to pay up (to a certain extent) when I think I have found it (again, don't ask me: ask Mr. Munger!). Then of course I might be wrong. And if I am wrong, I change my mind. As always, instead of being sarcastic and criticizing the ideas of others, you should present to all board members your ideas… Gio

Yes! I have seen that. Amazing! :) Cheers, Gio

On the other hand, those companies, if they are not frauds, tend to sell for an high multiple of EPS most of the time. Therefore, if you are not willing to pay up for quality, you might not be able to invest in them. I think a portfolio of 15-20 owner/operators that grow both organically and through acquisitions will do fine even if you are willing to pay up (still being conscientious about price, of course!), and despite short sellers. If one of those 15-20 companies becomes the target of short sellers, then I’ll simply sell it! And replace it with another one I like (almost) as much. ;) Cheers, Gio

Apple's iTunes is alienating its most music-obsessed users http://www.wired.com/2015/11/itunes-alternatives/?mbid=social_twitter Cheers, Gio

Tom Petty to Curate Own SiriusXM Channel http://www.rollingstone.com/music/news/tom-petty-to-curate-own-siriusxm-channel-20151117 Cheers, Gio

Here you can find the link to a recent article about VRSK: http://seekingalpha.com/article/3691096-verisk-is-too-appealing-to-ignore-take-advantage-of-a-post-earnings-sell-mentality In attachment you can find its latest presentation. Despite the recent pullback, it is trading at a multiple of 25x EPS. And it is highly levered with a Debt/EBITDA of 3.4 and an unlevered FCF which is 53% of EBITDA. Most would want to wait for a lower price... Certainly, though, it is a very good business (the need for managing risk in a cost effective and reliable way is not going away anytime soon) which has grown sales at a CAGR of 12.5% since 2004, both organically and through acquisitions. If anyone has been following the company for some time, I would like to hear a knowledgeable perspective on this business. Cheers, Gio Verisk_BlairGrowthStock2015.pdf

It seems Lou Simpson is recently buying large positions in companies that are "Strong Sell"... ::) Look at the presentation at the following link: https://drive.google.com/file/d/0Bzm9JT6Xfru3Y0FPb0liY3VfTDQ/view Cheers, Gio

No... Sorry! I have just started digging... Maybe someone else on the board already knows this company well! ;) Cheers, Gio

SQ Advisors (Lou Simpson) have made AME their n.1 position in Q3 2015. https://twitter.com/Find_Me_Value/status/666266497266782209 I like the business very much and Mr. Hermance seems to have an outstanding track record of both organic growth and growth through strategic acquisitions. AME’s debt load is very low compared to other companies that grow both organically and inorganically, which I like. In attachment you may find the Q3 2015 financial factsheet. And here is a link to an article about Mr. Hermance: http://www.ey.com/US/en/Newsroom/News-releases/News-EY-US-EOY-2014-Frank-Hermance-AMETEK-Inc-National-Distribution-Manufacturing-Award-Winner Has anybody been following AME for some time? Any thought? Cheers, Gio AME_Q3-15.pdf

There is a committee that is working. Personally, I’ll wait to hear what they are going to come up with. If no fraud is found, and of course they could prove it beyond any doubt, VRX share price might go back to $200 very quickly. Of course, I know I won’t be able to react as quickly… Therefore, I’ll take my time reviewing the committee’s findings, and if I think they are utterly clear and very convincing, I will be glad to reevaluate an investment in VRX again even at that much higher price. Cheers, Gio

Jay, I think fraud is different… I cannot say how many public companies are out there, probably there are more than 10,000. And I am looking for those 15-20 companies with a management that is not only great at allocating shareholders’ capital, but is very honest too. We all make mistakes, and I am well prepared to have patience and wait, when an operator I have decided to invest with has made some serious mistake… Still, fraud is another matter. I cannot say if Pearson has truly let fraud happen knowingly inside VRX. If you ask me, I would say I don’t think so. But it is still not clear… And, like I have said to ourkid8 in a PM, I believe VRX at $200 without the doubt of fraud was a much better investment than VRX at $80 with the uncertainty of fraud still hovering above it. Therefore, I essentially agree with Liberty. Cheers, Gio

I have opened a position in Liberty Interactive too. Between Liberty Media, Liberty Broadband, Liberty Global, and Liberty Interactive, the investment I have with Malone is my largest investment today. If Malone gets richer in the next 5 years, I will probably get richer too. ;) Cheers, Gio

Ok, now I have got it! ;) Thank you, Gio

What do you mean? Could you elaborate a bit further? Thank you, Gio

+1 I think this is a very good post. Emphasis mine. Cheers, Gio

Track Your Heart with Your Phone http://www.technologyreview.com/news/543306/track-your-heart-with-your-phone/ Cheers, Gio

Well... I guess that's what I meant! ;) Cheers, Gio

Might this just be a way to "force" the market to close the gap between capitalization and NAV? Malone surely is not new to this kind of actions. Cheers, Gio

Thank you, Pete! It is always a pleasure to have a discussion with you. By now you must know that I like to keep it simple: I look for a complicated investment idea only when a simple one doesn’t convince me… ;) With Apple I am satisfied answering these two questions: a) Is the smartphone the most important object we will carry with ourselves for the foreseeable future? YES b) Does the iPhone provide its customers with the best quality for the price they pay? YES That’s basically it for Apple as far as I am concerned: those two answers tell me the iPhone is and will remain the best business on earth. If and when those two answers change, I’ll change my mind. Cheers, Gio

I agree. As I have said, no one can be sure. But it seems Apple's moat is widening, not shrinking. Cheers, Gio

Ok. You are right. So, here we should talk about two things: 1) Is the iPhone going to maintain its premium status? Will it still be a product people want at all costs? 2) Is there still room for volume growth? Answers: 1) I think the whole Apple’s wherewithal is constantly focused on getting to a YES! All their efforts in both software and hardware and new products that constitute the Apple’s ecosystem are focused on keeping their users experience one step ahead of all the rest. Will they continue to be successful? No one can be sure… But, if you ask me, they seem to be very well positioned and to be doing all the right moves. 2) With China, India, Latin America, etc. getting richer and richer I still see lots of room for volume growth. It will be lumpy, of course… China and other EM might falter on their way to prosperity… But they will get there. That’s why to me volume growth seems much more predictable on a 10-15 year timeframe than in the next 2-3 years. What do you think I am missing here? Cheers, Gio

+1 Cheers, Gio