Offshore
Video
Aswath Damodaran (Youtube)
Chapter/Session 19: Aging with grace!
Session Description: In this session, I look at the choices that managers face when put in charge of declining firms, starting with acceptance (where they accept aging and act accordingly) and why management fights that path so much. I also look at the more alluring paths of revamps and rebirths, with examples of success, but with cautionary notes on difficulties on those paths.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch19.pdf
Exercise:
For the declining company in your group
a. What would denial look like (in terms of investing, financing and cash return policies?
b. What would acceptance look like (in terms of investing, financing and cash return policies)?
c. What would a revamp/rebirth look like (in terms of investing, financing and cash return policies)?
d. Which of the above paths is the management currently running the company most likely to pick?
Chapter/Session 19: Aging with grace!
Session Description: In this session, I look at the choices that managers face when put in charge of declining firms, starting with acceptance (where they accept aging and act accordingly) and why management fights that path so much. I also look at the more alluring paths of revamps and rebirths, with examples of success, but with cautionary notes on difficulties on those paths.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch19.pdf
Exercise:
For the declining company in your group
a. What would denial look like (in terms of investing, financing and cash return policies?
b. What would acceptance look like (in terms of investing, financing and cash return policies)?
c. What would a revamp/rebirth look like (in terms of investing, financing and cash return policies)?
d. Which of the above paths is the management currently running the company most likely to pick?
Offshore
Video
Aswath Damodaran (Youtube)
Chapter/Session 18: Managing across the life cycle
Session Description: In this session, I look at what top managers in businesses do, and how the skill sets annd mindsets you need in these managers will change as a company moves through the life cycle, turning on its head the notion that there is one prototype for a "great CEO". I also argue that a mismatch between a firm and its top management can be value-destructive, and that the odds of this mismatch have increased as company life cycles get compressed.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch18.pdf
Exercise:
a. Who is the CEO of each of your companies? How long has he/she been CEO and how did he/she get the position (founder, hired from outside, hired from inside)?
b. Is your CEO matched to your company?
c. If there is a mismatch, is there a response building to that mismatch (activist investors, proxy challenges)?
Chapter/Session 18: Managing across the life cycle
Session Description: In this session, I look at what top managers in businesses do, and how the skill sets annd mindsets you need in these managers will change as a company moves through the life cycle, turning on its head the notion that there is one prototype for a "great CEO". I also argue that a mismatch between a firm and its top management can be value-destructive, and that the odds of this mismatch have increased as company life cycles get compressed.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch18.pdf
Exercise:
a. Who is the CEO of each of your companies? How long has he/she been CEO and how did he/she get the position (founder, hired from outside, hired from inside)?
b. Is your CEO matched to your company?
c. If there is a mismatch, is there a response building to that mismatch (activist investors, proxy challenges)?
Offshore
Video
Aswath Damodaran (Youtube)
Chapter/Session 17: Investing in Decline
Session Description: In this session, I look at the investor groups, especially private equity and activists, who try to make their money by targeting companies in decline. In some cases, they do so, because the price is attractive, and in others, because they think that breaking up or even liquidating the firm can deliver more value than continuing as going concerns.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch17.pdf
Exercise:
a. If you had the capital and the capacity, do you think you would be a private equity investor? If yes, why? If no, why not?
b. As a public market investor, what approach to investing in declining companies offers the best odds for you? Why?
Chapter/Session 17: Investing in Decline
Session Description: In this session, I look at the investor groups, especially private equity and activists, who try to make their money by targeting companies in decline. In some cases, they do so, because the price is attractive, and in others, because they think that breaking up or even liquidating the firm can deliver more value than continuing as going concerns.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch17.pdf
Exercise:
a. If you had the capital and the capacity, do you think you would be a private equity investor? If yes, why? If no, why not?
b. As a public market investor, what approach to investing in declining companies offers the best odds for you? Why?
Offshore
Photo
Aswath Damodaran (Youtube)
Chapter/Session 16: Investing in Middle Age
Session Description: In this session, I look at value investing, at least as practiced by many in the space, as focused primarily on middle aged firms, trading at attractive prices. While value investing has an appealing mix of story and numbers, I look at the returns earned by value investors and find little cause for celebration. Active value mutual funds underperform value index funds by more than active growth mutual funds underperform their index counterparts. While there are pockets of outperformance among individual and activist value investors, the overall conclusion that I reach is that active value investing does not deliver on its promise. We close the session by looking at possible reasons for this gap between promise and practice.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch16.pdf
Exercise:
a. If you had the capital and the capacity, do you think you would be an activist value investor? If yes, why? If no, why not?
b. As a public market investor, what approach to investing in mature companies offers the best odds for you? Why?
Chapter/Session 16: Investing in Middle Age
Session Description: In this session, I look at value investing, at least as practiced by many in the space, as focused primarily on middle aged firms, trading at attractive prices. While value investing has an appealing mix of story and numbers, I look at the returns earned by value investors and find little cause for celebration. Active value mutual funds underperform value index funds by more than active growth mutual funds underperform their index counterparts. While there are pockets of outperformance among individual and activist value investors, the overall conclusion that I reach is that active value investing does not deliver on its promise. We close the session by looking at possible reasons for this gap between promise and practice.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch16.pdf
Exercise:
a. If you had the capital and the capacity, do you think you would be an activist value investor? If yes, why? If no, why not?
b. As a public market investor, what approach to investing in mature companies offers the best odds for you? Why?
YouTube
Chapter/Session 16: Investing in Middle Age
Session Description: In this session, I look at value investing, at least as practiced by many in the space, as focused primarily on middle aged firms, trading at attractive prices. While value investing has an appealing mix of story and numbers, I look at…
Offshore
Photo
Hidden Value Gems
An interesting observation:
Up until the past few years, the correlation between oil prices and the dollar has been mostly negative.
Now that the US is a net exporter of oil, the relationship between oil and the dollar has flipped.
In the past few years, correlation between the dollar index and Brent futures has been positive.
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An interesting observation:
Up until the past few years, the correlation between oil prices and the dollar has been mostly negative.
Now that the US is a net exporter of oil, the relationship between oil and the dollar has flipped.
In the past few years, correlation between the dollar index and Brent futures has been positive.
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Offshore
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Hidden Value Gems
Tips from the legendary Walter Schloss on investing 👇
Quote of the day #69 https://t.co/IZs5rikyfa
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Tips from the legendary Walter Schloss on investing 👇
Quote of the day #69 https://t.co/IZs5rikyfa
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Offshore
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Invest In Assets 📈
RT @InvestInAssets: Visa Business Breakdown $V 💳
Operational
- ROIC: 30%
- Gross Margin: 80%
- Operating Margin: 67%
- FCF/Net Income: 113%
Growth (5Y CAGR)
- Rev: 9.8%
- Op. Income: 10%
- EPS: 20.1%
Valuation
- Fwd. PE: 30
- EV/EBITDA: 26
- FCF Yield: 3.8%
Let's take a look 👇🧵 https://t.co/Gzrn4S30PO
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RT @InvestInAssets: Visa Business Breakdown $V 💳
Operational
- ROIC: 30%
- Gross Margin: 80%
- Operating Margin: 67%
- FCF/Net Income: 113%
Growth (5Y CAGR)
- Rev: 9.8%
- Op. Income: 10%
- EPS: 20.1%
Valuation
- Fwd. PE: 30
- EV/EBITDA: 26
- FCF Yield: 3.8%
Let's take a look 👇🧵 https://t.co/Gzrn4S30PO
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Offshore
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Stock Analysis Compilation
CL Capital on Hostelworld $HSW LN
Thesis: Hostelworld's innovative social features and strong market position make it a compelling play on the growing online hostel booking market
(Extract from their Q2 letter) https://t.co/PVh1MhReBt
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CL Capital on Hostelworld $HSW LN
Thesis: Hostelworld's innovative social features and strong market position make it a compelling play on the growing online hostel booking market
(Extract from their Q2 letter) https://t.co/PVh1MhReBt
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