giofranchi

Another large investment: more than 12% of AUM. Sounds like another opportunity for significant growth. Cheers, Gio

Q2 2015 Hoisington Review and Outlook Bond Market Bubble: a must read! Cheers, Gio HIM2015Q2np.pdf

--Louis Gave Gio The-End-Of-An-Empire-July172015.pd.pdf

I agree. I agree. Cheers, Gio

Mmm... Not sure, but my idea of a fiefdom is a bit different! ;) Cheers, Gio

Jarden’s Take on Private Equity: Publicly Traded, Up 5,000% http://www.bloomberg.com/news/articles/2015-07-16/jarden-s-take-on-private-equity-publicly-traded-and-up-5-000- Excellent article! Cheers, Gio

I wasn't referring to your answer! ;) Cheers, Gio

My point was simply that he writes “general rules of mindful investing”… Then it is up to each one of us to discern from situation to situation, and in real business no situation is alike the previous one nor the next one. As always God is in the details! I was trying to reason about the details of Nomad & Franklin… and I was answered sarcastically with a generalization. Not very useful. Gio

Valeant Pharmaceuticals Agrees To Acquire Amoun Pharmaceutical http://ir.valeant.com/investor-relations/news-releases/news-release-details/2015/Valeant-Pharmaceuticals-Agrees-To-Acquire-Amoun-Pharmaceutical/default.aspx Gio

http://www.thestreet.com/story/13165392/1/what-activist-hedge-funds-are-and-how-you-can-benefit.html http://www.thestreet.com/story/13218727/1/what-activist-hedge-funds-are-part-2--picking-the-best-strategies.html?utm_content=buffer3c83d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer Gio

A republic of greed: Why PM Modi must crack the whip on India’s snowballing corruption http://economictimes.indiatimes.com/news/politics-and-nation/a-republic-of-greed-why-pm-modi-must-crack-the-whip-on-indias-snowballing-corruption/articleshow/48108824.cms Gio

Ahah!!!! Buffett says and writes whatever he wants… But don’t attack KO on compensation! Otherwise you are going to be ridiculed by "the man with a 50 plus track record of decoding human behaviors and incentives" on TV!! ;) Cheers, Gio

Please, take a look at the discussion about Nomad Foods, if you are interested in knowing my view on compensation. Cheers, Gio

Ok, so let me be clear once and for all about how I view compensation. I look at compensation for what it really is: a cost. And as a cost the lower the better, of course… But I don’t try to read something else more “subtle” about compensation… Those who do imo run the risk of never being able to distinguish between the Icahns of this world from the rest. In other words, there are lots of people who work for low salaries and do a very poor job, just as there are some outstanding people who create lots of value while demanding to be paid a lot for their services. I choose the second ones everytime. What about people who create lots of value and work for low salaries? Well, easy enough: they are my first choice of course! And I already have an investment with everyone I know among that rarest of species… But it does not mean they are the only people I am willing to invest with. Finally, as far as Franklin is concerned, I would say the following: Nothing has changed from JAH, Justice Holdings, or PAH: his compensation has always been devised the same way; his method of buying mismanaged, undervalued things and fixing them, using some leverage, but with a keen eye on organic growth, is the same for Nomad as it has been for all other ventures of his during the last 15 years; Nomad’s industry (food) shares many features with JAH’s industry (consumer products), a very high level of predictability first of all. Nothing has really changed, therefore I do not see why results should change meaningfully. He keeps for himself 10% (he holds ½ of the Founder Preferred Shares) of the increase in stock price above the highest price previously reached… So be it! Cheers, Gio

Well... I repeat: you shouldn't trust people you have never met, never talked to, let alone work with... Imo it simply makes no sense. What you could trust, instead, are their abilities, their methods, and the quality of the businesses they have chosen for themselves. Everything else imo simply cannot be judged by outside investors. Of course it is clear that your point of view is a different one! Cheers, Gio

Ok, that tells something about their track-record... What about their method? Was it repeatable? What about their business? Was it predictable? Of course I don't know... But I would bet things unravelled because either their method stoped being repeatable or their business became unpredictable... Gio

It was fantastic until it wasn't. Well... Can you elaborate a little further? Thank you, Gio

By the way, I am not familiar with Tom Ward... Would you tell me which kind of track-record of building wealth for his shareholders he has? The business of fracking is not something I judge to be predictable enough. Therefore, I would not have invested with him... But not because of compensation! Instead, simply because the business he is in imo lacks predictability. Imo it is not people who are or behave in untrustworthy ways... It is the circumstances they put themselves in that force them to do things they otherwise wouldn't be doing! Cheers, Gio

Ok, doesn’t really matter! That’s what you inferred and what I think is wrong. Of course you might be right though! Unfortunately, I don’t have business results that are remotely comparable to his… But yes! I reinvest almost everything within the company… If you ask me, I would suggest the following: invest with someone with Franklin’s results and compensation, instead of investing with someone who has my business results and reinvest everything in the company! ;) With this I agree of course! Cheers, Gio

Probably, I have not been able to explain myself... But the comparison with Franklin misses what I was asking. It is not what is obvious that you cannot understand of course... It is what you seem to infer from Franklin's paycheck that I don't agree with. Franklin's track record says he works very reliably for his shareholders, you are inferring from his paycheck that he is not reliable instead. Imo the first is much more important than the latter. I am guessing: maybe to be paid what he thinks he deserves, and to build the capital for a new venture? Just a guess based on what I would be doing! Have you an investment in FRMO? Last time I checked Stahl's largest and more profitable position was JAH... Evidently, Ackman is not the only manager who thinks Franklin is a great owner-operator! Cheers, Gio

Well, $98 million were paid in a year, weren’t they? If they have created so much value, shareholders are waiting for that value to be recognized by the market… why shouldn’t Maffei? I am fine with Maffei’s compensation. Nothing to say about it! I just wanted to understand if you think he is putting himself at the same level of other shareholders. Of course, you might think whatever you like to think. Once again what’s ridiculous imo is the certainty with which some people speak about the behavior of mangers they know practically nothing about… It will remain a mystery to me… Anyway, even if you were right, and Franklin’s paycheck is only for the money (money for what?!... How many yachts do you think he is going to buy with all the money he has made during the last 15 years?!... Or is it money for status? If it is money for status, don’t you think he would also be mindful about how people think of him as a businessman?), 45x at JAH in 15 years was achieved after all compensation, right? I am not expecting him to duplicate such an amazing result, but I see a huge margin of safety there! As you had once said in the VRX thread, to each one his own. Cheers, Gio

Q2 2015: organic growth better than targeted 3-5% http://phx.corporate-ir.net/phoenix.zhtml?c=72395&p=irol-newsArticle&ID=2068252 Gio

Ah!... I hope it doesn’t! ;) Not only norther Italy has been subsidizing the central and the southern parts of the country since our unification, but also the Italian government has always been in Rome, therefore northern Italy has always been governed by the center and the south… Somewhat similar to the situation in Spain… In fact Catalonia has a long history of complaining about the government in Madrid, exactly how northern Italy has a long history of complaining about the government in Rome! Surely, I am not advocating such a folly… Germany should govern over the EU, but should also accept responsibilities… Instead, all they have been doing is to behave like victims: http://www.nytimes.com/2015/07/15/opinion/germanys-destructive-anger.html?smid=tw-share&_r=0 Cheers, Gio

Ahah!!!!... An equivalent of Hamilton?... I would be glad (and very surprised!) if at least one of those eurocrats had read Hamilton… That would be enough! ;) Cheers, Gio

That might be your view… Fine! Anyway, what’s wrong with that?! If I still get a 15% annual compounded, you bet I am willing! ;) Cheers, Gio