Hidden Value Gems
Applies to #Exor too 👇🏼

An incredible case study of how brand power can translate into more value for shareholders by @IntrinsicInv discussing $RACE :

✅ "After the company went public in 2015, it reported revenue of just under €3 billion for the year while shipping less than 8,000 cars at an average selling price (ASP) of €270,000 per car. EBITDA margins were 25%. Importantly, by our calculation, its return on invested capital (ROIC) was over 100%."

✅"In 2024, the company expects to generate over €6.7 billion in revenue in 2024 with EBITDA margins exceeding 38%. We expect over 14,000 cars to be shipped with an ASP over €400,000 – that is an ASP increase of €100,000 over the past 5 years!"

✅"When we did our first deep dive into the business in 2016, we estimated there were 2-3 million potential high net worth customers who could afford to buy a Ferrari. Consequently, selling less than 8,000 cars meant a customer capture percentage of less than 0.1% in any given year. Even this year, when the company will likely sell 14,000 cars, we believe it is still selling to less than 0.1% of its potential market." - Hidden Value Gems
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Antonio Linares
RT @holdmybirra: Prox podcast de @10ampro es con 2 pesos pesados para hablar sobre @nvidia @alc2022 (deep dives) y @gerdelgado (team Nvdia) https://t.co/wCIcHaXtgW
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The Institutional Limited Partner
15€ for a small bunch of Lilly of the valley. We don’t need lower rates!
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Hidden Value Gems
There is only one destination for value investors in early May.

Look forward to meeting old friends and making new ones!

#Omaha $BRK.B https://t.co/1nGTOt6zg2
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Daniel
10 Mental Models that will level up your Thinking:

1. First Principle Thinking - Rethink the problem from the ground up.

Separate the underlying facts from assumptions made based on them.

2. Second-Order Thinking - Instead of thinking about the immediate consequences, think about the second-level consequences.

3. Inversion - Look at the problem at hand from the endpoint instead of the starting point.

Don't ask: "What do I need to do?"
Ask: "What must I avoid?"

4. Opportunity Costs - Think about the costs that arise because you decide in favor of one option and thus against every other option.

5. Randomness - Keep in mind that there aren't always cause-effect relationships.

Lots of stuff is random.

6. Leverage - “Give me a lever long enough, and I shall move the world.” - Archimedes

7. Margin of Safety - Assume that your assumptions can be wrong and plan with a safety margin.

8. Occam's Razor - Always start with the simplest explanation, the one based on the least assumptions.

Then move to the other explanations if wrong.

9. Law of Diminishing Returns - Up to a certain point, additional units offer more value.

But there's a turning point where additional units offer less and less value, and costs rise.

10. Niches - Specializing is an effective way to success. Use it and choose a niche where you become an expert.
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Antonio Linares
$TSLA stock has gone nowhere since 2020, but the cars now drive themselves. https://t.co/Uf8I0bnTDj
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The Long Investor
$MSFT finished at $389 yesterday, just shy of making a lower low below $388.

Losing this level and the market will be under pressure.

I can’t see how it holds

If $MSFT makes a new low below $388

Market correction has a high probability of following down next too. - The Long Investor
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The Long Investor
$BTC the comments under this chart from the middle of March 😂

I brought you up and I said I’d guide you down

Once the pull back is complete, $BTC moves higher again.

$BTC I brought you up from $19,000 to $73,000

Now I'll bring you down.

This pull back is an opportunity, when this ABC correction is complete, $BTC will start its next aggressive move up. https://t.co/7zGJoZ1ZFV - The Long Investor
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The Institutional Limited Partner
RT @BoringBiz_: Private equity secondaries growing at a 17% CAGR from 2016 to 2023

For those unfamiliar, secondaries are a way to realize returns in illiquid asset classes such as private equity

There are primarily two types of secondary transactions

> GP Led Secondaries

Scenario: you have owned a fantastic company in your portfolio for 5 years and the fund life is coming to an end. Your LPs are asking for their money back but you know that holding on to this company for another 5 years is going to produce even more incredible returns

In a General Partner Led Secondary, the investor transfers an asset from one fund to a continuation vehicle that holds the asset

The continuation vehicle is a fund that is solely dedicated to holding just the asset

By doing this, the investor is retaining a stake or control of the company while also being able to recognize returns for his LPs

Existing LPs might also have the option to roll over their existing stake in the asset into the new continuation vehicle

> LP Led Secondaries

Scenario: you are an LP in a private equity fund that holds a lot of great assets. The fund life is 7 years. It is currently year 3 but you need liquidity today. You know the asset values inside this fund have appreciated so you go and look for a buyer that can buy a portion of your stake

LP led secondaries allow LPs to sell a stake in the private equity fund, essentially gaining liquidity in an otherwise illiquid market (private equity)
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 Q-Cap 
Me taking my kid to the local Dave and Buster to place some chips https://t.co/MNqTHMdpbx
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