Nell-e Posted February 9, 2018 Share Posted February 9, 2018 Would like to hear opinions about which companies/CEO's are truly long term focused and don't manage to quarterly results? These are some of the companies I've come across - Berkshire, AMZN, Tesla, Oaktree Capital, Tencent, BABA, JD.com, community banks that have been around for longer than 100 years and have been steadily profitable (i.e. BKUTK, AUBN) Link to comment Share on other sites More sharing options...
gfp Posted February 9, 2018 Share Posted February 9, 2018 I would add Texas Pacific Land Trust, TPL, to the list. They are "going out of business"... It's just taking them a while. Returns are awfully good. http://www.businessinsider.com/texas-pacific-land-trust-2014-8 Link to comment Share on other sites More sharing options...
Nell-e Posted February 10, 2018 Author Share Posted February 10, 2018 Thanks for the feedback, globalfinancepartners. I think I ran across TPL in 2010. I didn't know how to value it. I'm very bullish on Texas. I play it through Prosperity Bancshares (PB) which is another company that is long-term focused. The reason I started this thread was to generate ideas for compounders. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted February 10, 2018 Share Posted February 10, 2018 Hey all: One company that is truly long term focused is Seaboard (SEB). They've had one heck of a run! Link to comment Share on other sites More sharing options...
rb Posted February 10, 2018 Share Posted February 10, 2018 Nestle, AB ImBev, Google. Link to comment Share on other sites More sharing options...
Nell-e Posted February 11, 2018 Author Share Posted February 11, 2018 Hey all: One company that is truly long term focused is Seaboard (SEB). They've had one heck of a run! I had never heard of Seaboard. You're quite right about the run they've had. Thanks for chiming in. Link to comment Share on other sites More sharing options...
Spekulatius Posted February 11, 2018 Share Posted February 11, 2018 Nestle, AB ImBev, Google. Time will tell, but I think you can put FB into the same fold. Link to comment Share on other sites More sharing options...
racemize Posted February 11, 2018 Share Posted February 11, 2018 Other favorites: MKL, BAM, FFH Link to comment Share on other sites More sharing options...
BPCAP Posted February 12, 2018 Share Posted February 12, 2018 Costco. Huge sacrificer of short term gains for long term value. Link to comment Share on other sites More sharing options...
rb Posted February 12, 2018 Share Posted February 12, 2018 Costco. Huge sacrificer of short term gains for long term value. I have to admit: Costco is a weird beast. Link to comment Share on other sites More sharing options...
thepupil Posted February 12, 2018 Share Posted February 12, 2018 We manage the business for long-term wealth creation. We cannot directly influence share price, but surely our share price over time is a report card on our performance. Since I have run Vornado from 1980, total shareholder returns have been 16.5%(3) per annum. Dividends have represented 3.6 percentage points of Vornado’s annual return. Our external growth has never been programmed, formulaic or linear, i.e. we do not budget acquisition activity. Each year, we mine our deal flow for opportunities and, as such, our acquisition volume is lumpy. Our acquisition activity since 2013 has ebbed in response to a rising market. Acquisitions have been limited to strategic New York retail properties and creative class, value-add office projects; if we were an industrial company, you might call them bolt-on acquisitions. We have pushed away from acquisitions that are off-the-fairway, non-strategic or over-priced. 220 Central Park South continues its record setting success. In his annual letter, the greatest investor hawks candy, furniture, jewelry and insurance. So, I guess it is okay for me to remind shareholders here that we are developing 220 Central Park South, the best apartment house in town. Give us a call, we have a few good ones left. Debatable since the more recent track record is less impressive, but he mentions Buffett's annual letter, has a long term per share scorecard, has been in the business forever, and I happen to be reading it and I like to shamelessly pimp my thread. Link to comment Share on other sites More sharing options...
LC Posted February 12, 2018 Share Posted February 12, 2018 Nestle, AB ImBev, Google. Time will tell, but I think you can put FB into the same fold. Really? Everything I've seen makes me think they are doing the exact opposite. What makes you think they manage for the long term when their initial customers (college students) have completely abandoned them? Link to comment Share on other sites More sharing options...
BG2008 Posted February 12, 2018 Share Posted February 12, 2018 FRP Holdings - Over 20% family ownership LAACZ - 70% family ownership There are very few followers of these two companies. You basically own a bunch of real estate in the private market alongside the family at a big discount to liquidation value. They behave like how a wealthy family would with regard to their real estate portfolio. There aren't a ton of people following them. So there is no management to quarterly results. Link to comment Share on other sites More sharing options...
Spekulatius Posted February 12, 2018 Share Posted February 12, 2018 Nestle, AB ImBev, Google. Time will tell, but I think you can put FB into the same fold. Really? Everything I've seen makes me think they are doing the exact opposite. What makes you think they manage for the long term when their initial customers (college students) have completely abandoned them? I am not sure about Vollege students abandoning the,, but ai think they have taken a Lt view monetizing pretties like Whatsup and I also found their desire to reduce fake news and improve the user experience even if it means less time spent encouraging. Again, time will tell... Link to comment Share on other sites More sharing options...
DooDiligence Posted February 12, 2018 Share Posted February 12, 2018 We manage the business for long-term wealth creation. We cannot directly influence share price, but surely our share price over time is a report card on our performance. Since I have run Vornado from 1980, total shareholder returns have been 16.5%(3) per annum. Dividends have represented 3.6 percentage points of Vornado’s annual return. Our external growth has never been programmed, formulaic or linear, i.e. we do not budget acquisition activity. Each year, we mine our deal flow for opportunities and, as such, our acquisition volume is lumpy. Our acquisition activity since 2013 has ebbed in response to a rising market. Acquisitions have been limited to strategic New York retail properties and creative class, value-add office projects; if we were an industrial company, you might call them bolt-on acquisitions. We have pushed away from acquisitions that are off-the-fairway, non-strategic or over-priced. 220 Central Park South continues its record setting success. In his annual letter, the greatest investor hawks candy, furniture, jewelry and insurance. So, I guess it is okay for me to remind shareholders here that we are developing 220 Central Park South, the best apartment house in town. Give us a call, we have a few good ones left. Debatable since the more recent track record is less impressive, but he mentions Buffett's annual letter, has a long term per share scorecard, has been in the business forever, and I happen to be reading it and I like to shamelessly pimp my thread. Nice; I particularly like the final line re: 220 CP South. Pimp away bro. Link to comment Share on other sites More sharing options...
BG2008 Posted February 12, 2018 Share Posted February 12, 2018 I think a lot of the returns for Vornado is due to the unique circumstances of NYC getting safer, interest rate going from 8-10% to sub 3%, the kale eating crowd crowding into NYC, coupled with a land constraint location. I know a lot of people who have levered returns in the 20s range who simply bought property in a fringe area in NYC and sat on it for 20-30 years. They don't speak any English and had no formal education. So, his track record has to be valued in that light. Pupil - send me a PM. Let's chat offline. There's no agenda on my part to keep crapping on your ideas. I've seen a crazy cycles in 08 and 09 when SLG traded from over $100 to under $10. I have a tendency to nitpick. It's probably because I am a grumpy old man who has failed to keep up with time. Link to comment Share on other sites More sharing options...
Rasputin Posted February 12, 2018 Share Posted February 12, 2018 BAC under Brian Moynihan. Biggest short term profit hit decision they took was quitting correspondent mortgage lending. Cost them roughly $2 Billion per year in mortgage banking income. Link to comment Share on other sites More sharing options...
Guest longinvestor Posted February 12, 2018 Share Posted February 12, 2018 A good place to look for such companies are those Tom Russo invests in. Gardner Russo & Gardner. For those who may not be familiar, Tom is widely present on Youtube talking about this very topic, calling those long term companies with the "capacity to suffer". Nestle is one Tom has often spoken of. Link to comment Share on other sites More sharing options...
thepupil Posted February 12, 2018 Share Posted February 12, 2018 There's no agenda on my part to keep crapping on your ideas. I've seen a crazy cycles in 08 and 09 when SLG traded from over $100 to under $10. I have a tendency to nitpick. It's probably because I am a grumpy old man who has failed to keep up with time. Sent you a PM, but I encourage you to crap on them. Different perspectives should be provided. Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted February 12, 2018 Share Posted February 12, 2018 Apple Large R&D budget that is focused on incremental improvements to product lines. Heavy focus on aesthetics and ease of use. When they enter a market they quickly become the market leader. Large reserves of cash that is smartly used on add-ons to enhance existing product lines. Link to comment Share on other sites More sharing options...
Broeb22 Posted February 12, 2018 Share Posted February 12, 2018 Some of the moves Disney has made recently certainly fit the bill of thinking long-term: Buying BAMTech - Bought leader in streaming at a time when most acknowledged streaming was the future but few were willing to invest aggressively in building their own capabilities Merging with FOX Assets - makes company more internationally diversified, and provides add'l avenue to grow Disney brands internationally Opening Disney in Shanghai - long in the works, big risks taken in time and capital... There is a potential (likelihood?) that DIS continues to suffer as the cable bundle frays, but DIS is likely to continue to be relevant 10 years from now due to these moves... Others I like: Danaher Devin Wenig, CEO of EBAY - Has done a great job reinventing the user experience at EBAY. There is a lot of work to do to compete with AMZN, but the company's increasing growth rates and lower margins (largely due to increased investment) indicate the company was a sleeping giant for a long time. POST - I always look forward to Post Holdings' calls because hearing the strategic thoughts of Robert Vitale is worth it. They carry a lot of debt, but I think they constantly think about their businesses strategically. Link to comment Share on other sites More sharing options...
no_free_lunch Posted February 12, 2018 Share Posted February 12, 2018 Knight therapeutics (gud.to). Taking on huge piles of cash when the stock is high and then just sitting on it due to a dearth of opportunities is long-term in my mind. Certainly the market hates it. The company has only been around a few years but the CEO has a track record from his prior gig at paladin labs. EDIT: +1 to Costco, Disney, Danaher, MKL, BAM. There are some other great idea in here, I will be doing digging on FRP / LAACZ Link to comment Share on other sites More sharing options...
RedDaruma Posted February 12, 2018 Share Posted February 12, 2018 I would add CMPR to the list. Best, Link to comment Share on other sites More sharing options...
Nell-e Posted February 13, 2018 Author Share Posted February 13, 2018 I think Chegg falls into this category since Rosensweig took over. Link to comment Share on other sites More sharing options...
Sharad Posted May 7, 2018 Share Posted May 7, 2018 I would add Texas Pacific Land Trust, TPL, to the list. They are "going out of business"... It's just taking them a while. Returns are awfully good. http://www.businessinsider.com/texas-pacific-land-trust-2014-8 Thank you for pointing us to TPL. I appreciate it. Link to comment Share on other sites More sharing options...
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