NormR Posted October 8, 2015 Share Posted October 8, 2015 Like quality value? Check out ... "I consider myself to be a farmer—not a hunter. And I think most people on Wall Street are hunters. They like to fell big beasts and I’m very comfortable planting a few rows and just tending to them carefully.” Link to comment Share on other sites More sharing options...
Liberty Posted October 8, 2015 Share Posted October 8, 2015 Thanks for posting, Norm :) Link to comment Share on other sites More sharing options...
rishig Posted October 8, 2015 Share Posted October 8, 2015 Thanks for posting, Norm :) Liberty, at 58:00, I ask Russo about his third largest position, Mastercard and how it compares to Visa. Link to comment Share on other sites More sharing options...
Liberty Posted October 8, 2015 Share Posted October 8, 2015 Thanks for posting, Norm :) Liberty, at 58:00, I ask Russo about his third largest position, Mastercard and how it compares to Visa. Very good! I haven't had time to listen to the whole talk yet, but I'm looking forward to what he has to say about that. Thank you for asking the question! Link to comment Share on other sites More sharing options...
ScottHall Posted October 8, 2015 Share Posted October 8, 2015 I watched the video. A lot of my style is based on Russo and others in the same genre of value investing. This was one of the better Google value investing videos, because examples are used liberally. I find many such productions to be pretty glib and superficial, relying on the same stale circlejerks we've all become accustomed to in this community. This one was a notch or two above, at least in my opinion. Link to comment Share on other sites More sharing options...
Guest longinvestor Posted October 8, 2015 Share Posted October 8, 2015 Thanks for posting. Tom Russo's earnest approach is endearing. His focus on the "gut" of any issue (rather than the mundane) is rather remarkable. Capacity to suffer for example. The absence of this is so dominant all around us. The world is numbed. I fully share his view of the poor (diluted to the point of non-existent) ownership interest that pervades the typical large publicly run corporations. Stock options don't do it, this is my personal experience as well. Oh well, just stay away from them! Link to comment Share on other sites More sharing options...
menlo Posted October 8, 2015 Share Posted October 8, 2015 Rishig - are these events open to anyone or just Google employees? Link to comment Share on other sites More sharing options...
Guest notorious546 Posted October 8, 2015 Share Posted October 8, 2015 Thomas Gayner and this talk are my favorite of the google series on value investing. Link to comment Share on other sites More sharing options...
rishig Posted October 8, 2015 Share Posted October 8, 2015 Rishig - are these events open to anyone or just Google employees? Attendance in person is only open to employees Link to comment Share on other sites More sharing options...
crastogi Posted October 9, 2015 Share Posted October 9, 2015 Thanks to the value investors at google for making these fantastic videos available to all of us! Link to comment Share on other sites More sharing options...
JBTC Posted October 9, 2015 Share Posted October 9, 2015 In the video Russo said that his strategy of investing in global consumer companies expanding in emerging markets worked for 20 years until the recent couple of years. Does anyone have any thoughts on whether the recent slowdown in EM is temporary or secular? In the past decade when China was growing, it seems all EM countries were growing with it. With China slowing and commodities not doing well, most of them (except perhaps India) have faltered as well. On one hand, the EM per capita consumption is low for most consumer products. On the other, most EM countries have failed to move beyond middle income and become truly successful. Clearly Mr. Russo is assuming the long-run growth of EM consumers. Link to comment Share on other sites More sharing options...
Guest notorious546 Posted October 9, 2015 Share Posted October 9, 2015 Hey all, Russo often talks about how these companies invest so much for the long-term which is at the expense of short-term results? What exact results is he talking about EPS? quarterly FCF? I guess i'm kind just trying to better understand how the financial statements would capture if a company is investing more than it's peers and if it is really earning good returns on its investment. I guess it could be a number of things 1) lower margins, due to higher depreciation and amortization of ppe and intangibles 2) low free cash flow due to higher growth capital investments. open to ideas and suggestions for reading as well! Link to comment Share on other sites More sharing options...
KCLarkin Posted October 9, 2015 Share Posted October 9, 2015 Hey all, Russo often talks about how these companies invest so much for the long-term which is at the expense of short-term results? What exact results is he talking about EPS? quarterly FCF? I guess i'm kind just trying to better understand how the financial statements would capture if a company is investing more than it's peers and if it is really earning good returns on its investment. I guess it could be a number of things 1) lower margins, due to higher depreciation and amortization of ppe and intangibles 2) low free cash flow due to higher growth capital investments. open to ideas and suggestions for reading as well! Both EPS and FCF. An example that I am involved with is Cimpress. They are opening a new facility in Japan, which has the following impacts: - decrease in revenue while they temporarily halt sales in Japan - CapEx for new factory - operating losses as they scale up - working capital as they scale up - marketing expenses when they re-launch Cimpress has disclosed the expected impact of these investments, so you can normalize FCF. Link to comment Share on other sites More sharing options...
Phaceliacapital Posted October 9, 2015 Share Posted October 9, 2015 You could look historically and take capex in year t and change in EBIT from year t+1 to year t. Divide the incremental EBIT over the prior year's capex and you get a approximate indication of how well they invest capital.. Link to comment Share on other sites More sharing options...
Liberty Posted October 9, 2015 Share Posted October 9, 2015 Thanks for posting, Norm :) Liberty, at 58:00, I ask Russo about his third largest position, Mastercard and how it compares to Visa. Very good! I haven't had time to listen to the whole talk yet, but I'm looking forward to what he has to say about that. Thank you for asking the question! Finally had a chance to listen to the whole thing. His answer to your question was very interesting, and it certainly makes me look at the difference in margins between V and MA in a different light. Now what I'd love to find out more about is how effective the reinvestment at MA is, which seems to be a hard thing to judge from the outside... Again, thanks for asking the question. Link to comment Share on other sites More sharing options...
gjangal Posted October 9, 2015 Share Posted October 9, 2015 his answer to me was a bit light on details, but mastercard' s op margins are around 52% and visa's is around 65%. At 11% organic rev growth and a possible double digit op margin expansion , Ma can still run higher Link to comment Share on other sites More sharing options...
jrunner Posted October 11, 2015 Share Posted October 11, 2015 Great video. Thanks for posting! Link to comment Share on other sites More sharing options...
loganc Posted October 11, 2015 Share Posted October 11, 2015 Interesting talk. I agree with the general philosophy espoused - "capacity to suffer" and reinvesting capital for long term growth in spite of current earnings. However, can anyone provide the long term investment track record of Russo? Edit: (paraphrasing) The top 100 people in Illinois that work for Kraft speak 0.9 languages, per Russo. Good luck with discounting 3G. Link to comment Share on other sites More sharing options...
EliG Posted October 11, 2015 Share Posted October 11, 2015 I think he put up a slide that showed his track record. 15% CAGR since 1999-2000, if I remember correctly. Link to comment Share on other sites More sharing options...
EliG Posted October 11, 2015 Share Posted October 11, 2015 Ok, I didn't remember correctly. I went back to the video and checked the slide. It's around 54:56 mark. 15% CAGR is right, but the record starts in 1984, not in 1999-2000. Link to comment Share on other sites More sharing options...
Guest notorious546 Posted September 25, 2016 Share Posted September 25, 2016 i came across this. i forget where i found the link. http://timschaefer.podomatic.com/entry/2016-06-24T10_18_32-07_00 Link to comment Share on other sites More sharing options...
LR1400 Posted September 25, 2016 Share Posted September 25, 2016 If he's a long term guy, why is he going in and out of Nestle every 3-6 months? What am I missing? Link to comment Share on other sites More sharing options...
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