Some links

Steve Romick’s FPA Q4 comment including some very good remarks about the overall valuation levels

Rare interview with Paul Singer (Elliott Capital) on EM and other global topics

Interesting article about someof the “secret sauce” of US retailer Costco

Jim Chanos is shorting companies which buy back stocks

Companies going to the WEF in Davos are loosers

Finally, Prokon, the issuer of the Genußscheine I looked at 2 years ago went bankrupt. Not really a surprise, it is always the same sad story.


  • Chanos…
    IBM and ORCL have a growth problem and both have a good enough equity base and high ROE.
    As long as shares are purchased below intrinsic value, I don’t see a cause for concern. Where else with ample FCF? In both cases, more organic or inorganic growth would mean a lower marginal ROE.

    But there are a lot of buyback-happy companies with little equity and share prices far above intrinsic value.

    • “Chanos didn’t name specific stocks that he’s shorting in the Journal’s article.”
      Actually I don’t think he is shorting IBM or Oracle.

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