nwoodman

Thanks, these are always fascinating. Micron turned out to be a good trade, although they left a bit of money on the table. Date of Disposition: March 26, 2024 Number of Shares Sold: 572,934 Total Consideration: $60,018,937 Book/Adjusted Carrying Value: $48,894,188 Realized Gain: $29,262,819 Average Sale Price per Share: Approximately $104.76

True, but we are not talking a paltry amount. I think this is a 80-90c on the dollar repurchase that has been well considered.

This sounds about right to me. Thinking about it over the last day I concluded that Prem left enough on the table to ensure that the optics of a direct buyback by the company will look good in a years time.

There was an interesting article in The Ken today regarding health insurance in Digit’s mix. Summary: Summary 1. Go Digit, India's first insurtech unicorn, is launching its IPO on May 15 at a $3 billion valuation, lower than its last private valuation of $3.5 billion. 2. Go Digit's business mix is shifting, with motor insurance premiums falling from 93% to 70% of total premiums and health insurance premiums growing 26.8X from Rs 48 crore (3% of total premiums) in FY20 to Rs 1,288 crore (16% of total premiums) in FY24. 3. However, 96% of Go Digit's health insurance premiums come from the less profitable group insurance segment, concerning industry experts. 4. Go Digit's focus on group health insurance has led to a higher incurred claim ratio (93% in Q3 FY24) and a combined ratio of 109%, while competitors like Star Health are pivoting to more profitable retail policies. 5. According to industry insiders, insurers often focus on group health insurance as a "low-hanging fruit" to grow their topline and market share quickly, even if profitability suffers. 6. Go Digit remains committed to group health insurance in the near term, expecting to rely heavily on corporate clients for a substantial portion of its health insurance premium revenue. 7. Some believe Go Digit's strategy could work if it targets the right corporate segments, such as IT and startups willing to pay well for employee health benefits. 8. As a public company, Go Digit will face pressure to deliver both growth and profitability in the challenging group health insurance segment. 9. Founder Kamesh Goyal acknowledges that success in the stock market, like in life, is not a linear climb, and Go Digit will need to prove its ability to buck industry trends profitably. Personally I think the pie is growing so fast it doesn’t really matter. Also I would see the health data you are gathering for the Life business and vice versa as material. This quote is salient for their future retail book of business: “But why isn’t a venture capital-backed internet company like Go Digit giving top priority to retail customers just yet, especially when many are singing its praises? “Go Digit has the best mobile app among all general insurers, and getting health insurance through it was incredibly convenient,” said a 32-year-old Chennai-based financial analyst who got introduced to the insurer through a short-term Covid-19 insurance provided by their employer. They have been renewing their policy for the past four years, paying Rs 20,000 (US$240) annually for Rs 20 lakh (US$24,000) coverage, which includes modern treatments like robotic surgeries. Go Digit wanted to build brand recognition through corporate clients before diving into retail, but the shift won’t be a breeze. “It’s easy to attract users for motor insurance, but health or life insurance requires trust in the company,” as the Gurugram-based insurtech employee put it. IMHO if there is one insurance executive that gets this, it is Kamesh Goyal

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That’s quite the hike “In a bid to make rich individuals and corporations pay more taxes, the federal Liberals said they will increase the capital gains inclusion rate(opens in a new tab) — the share of capital gains that is taxed — from 50 per cent to 67 per cent. The change will apply to those with more than $250,000 in capital gains in a year as of June 25. All corporations and trusts will also have to pay taxes on a bigger portion of their gains.” https://www.ctvnews.ca/canada/what-is-changing-about-canada-s-capital-gains-tax-and-how-does-it-impact-me-1.6860457#:~:text=Canadians must report taxable capital,capital gains in a year.

Go Prem. A well deserved payday and an efficient way to retire a chunk of shares. Given the ramp in insider sales (not just Prem) I would argue that we were approaching IV except the TRS position suggests otherwise.

6758.T Sony Co + 7974.T Nintendo

All good, I think you touched on the key point and that is control. After all Odyssey isn’t wholly owned either

I think you will find the equities are held at the sub level. This is also the case with Berkshire. It will be the same for Digit. Take Eurobank for example (from Perlexity): Several subsidiaries of Fairfax Financial Holdings Limited own shares in Eurobank Ergasias S.A., a major Greek bank. According to the search results: Zenith Insurance, Odyssey Reinsurance Company, TIG Insurance Company, United States Fire Insurance Company, First Capital Insurance Limited, TIG Insurance (Barbados) Limited, Advent Capital (Holdings) Ltd., Falcon Insurance Company (Hong Kong) Limited, Brit Insurance (Gibraltar) PCC Limited, Advent Capital (No. 3) Ltd., Newline Insurance Company Limited, Newline Corporate Name Limited, and Fairfax Financial Holdings Master Trust Fund have all acquired shares in Eurobank over the years. For example, in December 2017, Zenith Insurance acquired 2,335,000 shares, Odyssey Reinsurance Company acquired 5,837,500 shares, TIG Insurance Company acquired 1,167,500 shares, and United States Fire Insurance Company acquired 2,335,000 shares in Eurobank. A slightly more interesting question is where are the investment ideas going to originate? Ultimately HWIC would sign off I would think.

Udio https://www.udio.com This is a hoot. The kids and I have been taking this for a spin. The ability to come up with lyrics for inputs such “Midget goats who like ice cream” - rock, “Bitcoin is a Ponzi scheme”-punk, “Recipe for a soufflé”-hip hop. The music is actually pretty good and the lyric and title generation had us in stitches. Highly recommend, especially if you liked Spinal Tap

Thanks @Viking. There seems an inevitability that Eurobank pushes beyond the $3bn mark. It feels like yesterday that the whole of FFH could be bought for $10 bn. Unreal. A reminder Eurobank reports Thursday 16th May https://www.eurobankholdings.gr/en/grafeio-tupou/etairiki-anakoinosi-29-04-24

Thanks that seems to work. I might try some further back testing when I have a spare moment. Now that these entities are making decent money it's a bit more important to understand any timing differences

I actually thought it was on the current quarter. Hadn’t got as far as reconciling the numbers across to Fairfax to check.

Thanks for this. Summary in the ATCO thread https://thecobf.com/forum/topic/1691-atco-atlas-corp/?do=findComment&comment=563864

No problems I would just love to know where

@SafetyinNumbers. That's quite interesting. To be honest as as much as I would like the sugar hit to book I would much prefer them to have a stellar IPO record in India i.e stag and long term. Let Recipe, Farmers Edge and the like never be repeated. You get it right in India in terms of raising capital and delivering and you have a Lollapalooza. Edit: Anchorage being next

OK, so absolutely nothing offical to fill in the black dots. All I needed to know.

“Go Digit IPO sets Rs 258-272 per share price band; bids open on May https://www.business-standard.com/markets/ipo/go-digit-ipo-sets-rs-258-272-per-share-price-band-bids-open-on-may-15-124051000481_1.html No problems if that is the case but where are they getting that number from? The only thing that is official has that number blanked out

The point is where is the media getting their spread in terms of their pricing from now?

We must be on different planets or operating systems. Screen shot and post if you are actually seeing what they are reporting. Spoon feed me!

I get that, where is the actual prospectus that these articles are referring to? I guess this is the first Indian IPO I have ever actually been interested in and it is bizarre.

Cheers, there is also a similar positive feedback loop that facilitates share buybacks via the TRS. It’s a fascinating set up.My view is that IV is signalled when they close out the TRS and apologies for stating the obvious.

I see the price band being reported at 258-272 rupees. I have searched through the red herring prospectus any reference to this price band is just a black circle. Not sure if there is something funky going on with my pdf reader. Can someone screen shot and upload a document that actually shows the floor and cap price as reported. Thanks in advance

It does but the good news is we are about to find out . If this goes full fintech then I would expect at least a $3.5bn market cap (4x’sGWP). Their 68% gets marked at $2.4bn. Your guess is as good as mine though. The only thing I can say with reasonable confidence is that Digit is likely to be worth a lot more than the current carrying value in 10 years time Key Dates: 1. Bid/Offer Opening Date: Wednesday, May 15, 2024 2. Bid/Offer Closing Date: Friday, May 17, 2024 3. Finalisation of Basis of Allotment: On or about Tuesday, May 21, 2024 4. Initiation of Refunds/Unblocking of Funds: On or about Wednesday, May 22, 2024 5. Credit of Equity Shares to Depository Accounts: On or about Wednesday, May 22, 2024 6. Commencement of Trading on the Stock Exchanges: On or about Thursday, May 23, 2024 .