giofranchi

I am not saying I know the solution… I was merely pointing out that the founding fathers of the US vehemently pushed for the establishment of a central government. Which lesson might be learnt from that, if any, I cannot tell. Cheers, Gio

Personally, I think the word “trust” is very often misused. Especially for people we have never seen, nor talked to, nor worked with! My experience is that I am still sometimes baffled by the behavior and choices of people I have been working with for 10 years now… Therefore, I really do not think a checklist might go a long way in helping you to judge people’s character correctly. So, which kind of “trust” might be justified? I trust the ability of a manager to put into practice what he has said his shareholders he is going to do. Show me not only that your reasoning and method are sound, but also that you are able to deliver the results you have promised. Period. I don’t go farther than that, because I don’t think I can. Those managers are all multi-millionaire, if not billionaire. They don’t work for the money (hey! I almost don’t either!). They work because: 1) they relish a job well done and/or 2) they relish being respected and admired. In either cases I think it is reasonable to expect them to do what they think is right. Some think it is right to work for free, other think it is right to get paid for their services. As I have said, I am not here to judge… But, if you ask me, I believe it is right to get paid for our work. By the way, last time I checked Maffei got a paycheck of $98 million for 2014. Yet, LMCA has practically made no money for its shareholders for more than a year. I am just curious to know if that’s fine with you and, if so, why. Thank you. Gio

Liberty, I am not here to judge what rubs people well and what doesn't. Each manager has his own way of doing things. Some make money for their shareholders, while the great majority does not. And I am here only to make money. Mr. Franklin imo is one of the managers who has made the most money for his shareholders during the last 15 years. As I have said, that's enough for me. Then of course no one knows what the future might bring! ;) Cheers, Gio

But the company doubled in market cap during the last twelve months... A $1.6 billion gain out of a company that had a capitalization of $1.6 billion... How have you exclaimed?... Holy shit!! ;) Liberty, They have been working for 15 years now: evidence enough for me! Cheers! Gio

Imo if we want a union, the stronger should govern, but should also take care of the weaker. That's what a union is all about! And that's why a central government is necessary. Imo either we proceed towards a central government, or we go back to what we were. Because anything in between, what we are right now, simply doesn't work. Cheers, Gio

I don’t agree: maybe after 250 years of history you could do without a strong central government… I strongly doubt it!... But surely not at the beginning! ;) Cheers, Gio

Skill India Mission http://timesofindia.indiatimes.com/india/Skill-India-Mission-Highlights-of-PM-Modis-speech/articleshow/48085324.cms?utm_source=twitter.com&utm_medium=referral&utm_campaign=TOIIndiaNews Cheers, Gio

Maybe... The problem is: when you have a common currency, you don't have time. Gio

A very good article: http://www.forbes.com/sites/matthewherper/2015/07/15/giving-theranos-a-few-tests/ Cheers, Gio

Washington about the 4 things America would need to attain greatness: 1) consolidation of the states under a strong federal government, 2) timely payment of its debts, 3) creation of an army and navy, 4) harmony among its people. Let's say the EU might attain both 2) and 3)... What about 1) and most of all 4)? Cheers, Gio

http://www.valuewalk.com/2015/07/bill-ackman-mergers/?utm_campaign=trueAnthem%3A+Trending+Content&utm_content=55a5081604d3012f11000001&utm_medium=trueAnthem&utm_source=twitter Cheers, Gio

It seems to be a very large investment! More than 25% of AUM. After all non-banking finance, housing finance, wealth management, retail broking, institutional equities, investment banking and insurance distribution, certainly are in Fairfax’s sweet spot, and backed by a rapidly growing market. Of course I like it! ;) Cheers, Gio

No actionable advice unfortunately... But I'll be watching this company very closely! ;) http://www.fiercebiotech.com/story/biotech-legend-lee-hood-gambles-36m-plan-revolutionize-healthcare/2015-07-13 Cheers, Gio

My pleasure! Cheers, Gio

An Inside Look At The Theranos Direct-To-Consumer Experience http://www.forbes.com/sites/danmunro/2015/07/13/an-inside-look-at-the-theranos-direct-to-consumer-experience/?utm_campaign=forbeshealth&utm_source=TWITTER&utm_medium=social&utm_channel=Business&linkId=15487295 Gio

When I have some cash, I always buy businesses that I love. If you don’t do more business than you could afford to (if you don’t use leverage indiscriminately), I think that’s what I would suggest. Of course I always try to understand which businesses might perform better in the future: when I see lots of complacency, and I believe a correction is probable, I gravitate towards those businesses that are more conservative, hold lots of cash, and have an history of taking good advantage of slowdowns. Gio

A new investors presentation about the acquisition of the Waddington Group. Gio The_Waddington_Group_-_Investor_Presentation_-_7.13.15vFINAL.pdf

Cevian Capital playing Ackman's strategy? ;) Gio

Yes, they recently have. Imo Franklin operates in a way similar to 3G Capital: he identifies businesses that are in good industries, but which are temporarily suffering because of weak management, buys them at a discount, and then proceeds to fix the problem (in fact he already has: EBITDA margin was 2.5 points higher in Q1 2015 than in Q1 2014). I think he is very conscious organic growth has to resume soon, and I think he might be successful in implementing the necessary changes to reach that goal. On top of organic growth of course you should add any external growth through acquisitions that Franklin might be able to engineer in the future: though organic growth is indispensable, it is usually the external growth through acquisitions that adds the most value. Gio

Another good deal by Franklin? http://www.nytimes.com/2015/07/14/business/dealbook/platform-specialty-products-alent.html?smid=tw-dealbook&seid=auto&_r=0 Cheers, Gio

A new company presentation. Gio nomad-foods-company-presentation-070715.PDF

Ok, then we should clarify what compounders mean: is L a compounder? Is JAH a compounder? Are they both compounders? If you had invested in L in 2001, you probably would have done little better than the S&P500. Instead, if you had invested in JAH in 2001, you would have increased your capital 45x. Both compounders, yet extremely different results! Imo in business you cannot generalize. Cheers, Gio

They earned $1.25 per share during the LTM, before the placement of new shares. A multiple of 17-18x is imo a fair price for a business that: 1) Is led by an entrepreneur with a phenomenal track record (45x at JAH since 2001, 14 years); 2) Whose method is sound and repeatable (see JAH, Justice Holdings, and PAH); 3) In a predictable business (food). This morning I have just bought more. Cheers, Gio

Results of placing new ordinary shares. Gio Results-of-Placing-July092015.pdf

Of course it is very difficult to talk about something that hasn’t happened… Who really knows, right? But what about all the good economic effects introduced by the EU, without the debilitating economic effect introduced instead by the Euro? What about something as simple as that? Gio