Category Archives: What we read

Some links

Rob from RV capital has released his semi-annual investor report with some very good insights (registration required)

A very interesting “idea watchlist” from ClarkStreetValue

Whenever markets go down, Jim Chanos gets more airtime. Discusses China, EM, Solary City, HP and others.

Another half year report, this time from Zeke Ashton’s Centaur Total return fund

Damodaran vs. China

The ViennaCapitalist has an interesting perspective on commodity traders (Glencore)

Some links

A retired HF guy is shorting Canadian housing

A critical look at “Black Box” quantitative Trading strategies. Hint: they all blow up.

Not every spin-off works out. As a reminder, a list of 25 really bad spin off cases

Greenbackd with an analysis of a deep value stock, watch maker Movado

Good write up on South African furniture retailer Lewis Group from the Bovinebear blog

Ever heard of an “Outsiders” like oil & gas explorer ? Canadian Peyto seems to fit the bill here (H/T valueinvestingworld)

The Brooklyn investor with a look at Mondelez and Bill Ackman

Some links

FT Alphaville looks at the strange accounts of Wirecard (Part 1, Part 2)

Uk Value Investor runs Stagecoach through his check list

Woodford funds on share buy backs

Presentation on SeaWorld, a potentially good company with temporary (?) problems ?

Another HF presentation on Cimpress NV

Malcolm Gladwell on big data and why it might be mostly a big hype

A very funny and helpful Youtube video on what not to do with Power Point…

Golf as a business has come under pressure

Some links

Ben from Wertart has collected an interesting portfolio so far

Great post from Punchcard Blog on Discovery Communication and the Future of pay TV

David Einhorn had better quarters than Q2 2015

The guy who runs Google’s driverless car project with an interesting TED talk

Nate from Oddball wisely prefers neglected stocks vs. distressed ones

Frenzel & Herzing with a post on their favourite stock Vitec Software Group AB

Double Book review: Tim Clissold “Mr. China” & “Chinese Rules: Mao’s Dog, Deng’s Cat, and Five Timeless Lessons from the Front Lines in China”

Tim Clissold is an English guy who happened to go to China just when China was opening up to the Western world in the early 1990s. His first book “Mr. China” tells the story how he tried to set up and invest a 400 mn USD private equity fund in China together with an US Wall Street veteran.

This was clearly not an easy task. When, after visiting 100 or more companies, he finally found some to invest in, the real problems only began. Ownership rights in China are quite flexible and in his book there are a couple of in-detail stories what can go wrong in China. As a short summary I would say that actually almost everything can go wrong in China for a foreign investor. Contracts are worth nothing and more than once a manager disappeared with most of the money. In other cases, the old owner just built a new factory next to the old one and all the workers left for the new factory and so on and so on. An interesting details was the importance of company seals (“chops”). Those company seals are much more important than anything and the one who has those seals in possession can do anything.

It might be a severe case of confirmation bias but after reading this book I felt fully vindicated for not even considering to invest in any German or US listed Chinese companies (and yes, this includes Alibaba, Baidu etc.). If you can’t even control what’s happening when you are in the country how should you have any chance if you are only invested via several questionable legal constructs.

Clissold makes it especially clear that Chinese thinking is entirely different from western thinking when it comes to business and rules that we take for granted just do not apply or even exist in China.

The second book is a more focused story on his second attempt in China, where he was called in to solve a difficult situation with regard to a big Carbon credit project and then started out to set up his own Carbon Credit investment fund in the mid 2000s. Of course he encountered the same problems as in the first try but he tried to counter them with more typical Chinese tactics which seemed to have worked better. In the end this project didn’t work either as the price of Carbon credits collapsed during and after the financial crisis.

The second book also includes more historical and philosophical background on China which makes it a “deeper” read than the first one.

Overall I can recommend both books to anyone who is interested in China in general and investing or working in China specifically. Although they are a lot of “How China thinks” books out there, this is one of the few with really first hand experience. And the books are quite well written, too.

Some links

Thanks to a stock forum I discovered that John Hempton from Bronte is issuing a monthly letter for his Australian fund (H/T qed1984). The last one about China is brilliant.

An interesting article about a Whistleblower at Halliburton with some insight into the arcane world of “revenue recognition”.

Charlie Rose 30 minute interview with Ginni Rometty, CEO of IBM

Q1 report of Centaur, the US value fund run by Zeke Ashton

Must read: Roddy Boyd exposes US pharmceutical company and stock market darling Insys Therapeutics which seems to be literally “killing it”

A couple of presentations from the Ben Graham Centre 2015 Conference

Finally interesting research from German StarCapital on country by country valuations adjusted for differences in the underlying industry sectors

Some links

The Brooklyn investor looks at the JPM annual report and Loews

David Einhorn’s presentation from the Grant’s Investment Conference 2015

A new White Paper from AQR called “Fact, Fiction and Value Investing” (h/t Valuewalk)

Frenzel & Herzing look at Greek company Metka

Is Google the next Microsoft ?

Some interesting thought about the issues in Turkey

And finally, Hedge Fund billionaire Paul Tudor Jones wants to change capitalism

« Older Entries