How to invest into Venture Capital – Listed Vehicles (part 1)

One upfront remark: I do not recommend to invest in Venture Capital right now. The market is clearly overheated and the asset class is known to be very volatile although Warren Buffett’s Todd Combs seems to just have discovered Fintechs.

This post is ment as a “long-term perspective” view on the sector and not a buy recommendation in the current environment.

How to invest into Venture Capital as a Private Investor

Famous VC funds

Venture Capital, i.e. the industry funding (technology) start-ups is known that almost everything depends on relationships.

It is no secret that a few funds like Sequoia or Kleiner Perkins have produced outstanding returns but these funds are “invitation only”, there are little chances even for larger institutions to invest in them and for individuals without direct connections it is more or less impossible to get in.

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Some links

A great look back 10 years ago when Porsche created the Volkswagen Short Squeeze

The 5 most influential (historic) blog posts on Software ever

Don’t rely on the high dividend yields of consumer staples stocks

Forager is seeing Inflation risks

Notes from the SF Sohn conference and the Capitalize for Kids conference

Why Chinese short-video start-up Bytedance is supposed to be worth 75 bn USD

Some deep thoughts on how to apply Machine Learning to equity investing

Some links

Very good write-up on UK Hospital supplier Tristel

A good presentation (from April 2018) on Tech company Box Inc

Neil Woodford’s fund has been cut down by half (search result, h/t Monevator)

Notes from the “Invest for Kids” Chicago conference and from the Great Investors Best Ideas Dallas Conference

The Fall 2018 issue of Graham & Doddsville is out

How will the Saudi issue effect Tech valuations in the Valley going forward ?

A good collection of Spin-Off links

 

Updates: DOM Security, April SA, Metro Bank Plc & Metro AG

A few (random) updates on stocks I own or looked at in the past:

DOM Security:

Already 3 weeks ago, they issued a document how and when the merger will be completed. If I understood everything correctly, the ratio will be 20 SFPI shares for one DOM Security share and completion is on or around 13. November 2018.

DOM currently trades at 53 EUR, SFPI at 2,61 EUR, so the relative price is pretty efficient. I plan to stay invested and over time increase the position from 3% currently (after selling 40% at the tender offer at 75 EUR) to a full position. I think it makes sense to stay with founder Mr. Morel for the future.

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Some links

Interesting analysis of Customer acquisition cost (CAC) and life time value (LTV) of Netflix users

Recommended: UK stock blogger Maynard Paton (h/t Alan who linked to this in the comments)

Concentrating bets sometimes doesn’t work even for very smart investors: Eddie Lampert  & Sears

The Crypto ICO market has cooled off significantly

Great post on moats in the digital age (Booking, Landstar)

The build-up of “almost-junk” debt is astonishing

Good write up on Herny Schein

System1 (ISIN B00B1GVQH21) – Warren Buffett “Collateral Damage” or Structural Headwinds ?

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System1 (or under its old name Braijuicer) is a good example for a stock where it didn’t pay off to hold if we look at the chart:

system1

I had looked briefly at them when Ben from Wertart bought them in early 2016 but back then didn’t take the time understand what the company was all about. After the huge drop I decided to have a deeper lok at the company.

The business

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