vikx01

I'm currently reading this book: [amazonsearch]A Blueprint for Better Banking: Svenska Handelsbanken and a proven model for post-crash banking[/amazonsearch] This was mentioned in Chancellor's book based on Marathon Asset's letters [amazonsearch]Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15[/amazonsearch] where they mention how Svenska Handelsbanken survived both the swedish banking crisis and the GFC without any government support. There is a thread for it here: http://www.cornerofberkshireandfairfax.ca/forum/books/capital-returns-investing-through-the-capital-cycle-a-money-manager's-reports/ So far it's turned out to be a wornderful albeit short book. There is a good explanation of the causes of the GFC but the interesting part, apart from the sections on Handelsbanken itself, is the sevens deadly sins of imprudent banking: 1. Imprudent asset-liability mismatches 2. Supporting Client's asset-liability mismatches 3. Lending to over-indebted customers i.e. “Can’t Pay, Won’t Pay” types 4. Investing in non-core assets or as Marathon puts it in their letters "Reaching for growth in unfamiliar areas"" 5. Dealing with non-bank financial system or as Marathon puts it in their letters "Engaging in off-balance sheet lending"" 6. Emerging markets and real estate or as Marathon puts it in their letters "Getting sucked into virtuous/vicious cycle dynamics"" 7. Continuity of the past into the future i.e. assuming future will be like the (short term) past. Each of these is of course described in more detail and makes more sense than just the title. I'm only only a third into it but find it a very good read. The chapter on GFC (https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%9308) gives a very structured way to look at the crisis; it's easily the best structured way to think about that I've come across. Everyone investing in banks should read it. btw. It's difficult to believe this but this bank does not issue employee bonuses except for a few exceptions (and no, senior management is not the exception). And this is a full service bank.

I got mine (kindle book) from Amazon.com (the US site.) I'm 3/4th way through it and it's a very good book indeed. There is one place where he (likely Ostrer) quotes Johann Rupert (of Richemont) as this: “No, no, no, no. I didn’t lose a lot of money when I tried to sell the business. I lost the money when I bought the bloody thing. That’s when you park your money, it’s not when you try to find a bigger idiot than you to take it off your hands.” ...simply classic. Here's another: “[There are] three stages of [an] acquisition, which [are] euphoria and then disillusionment. And the next thing is looking for somebody to blame for buying the place.” and a funny but profound one ... “The grass is always greener on the other side of the fence. But you only find out when you climb over that the reason why it’s greener is because of all the cow dung hidden in the grass. And as soon as you start stepping in all this stuff then you wonder why you ever crossed the fence.”

I just started reading the following book a couple of days ago. Seems to be an amazingly good read so far. There are lovely excerpts from their annual reports on what they call the "Capital Cycle". There is some very good industry analysis. [amazonsearch]Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15[/amazonsearch] Once I finish this, I'll try to get a hold of his (Edward Chancellor's) previous book ([amazonsearch]Capital Account: A Fund Manager Reports on a Turbulent Decade, 1993-2002[/amazonsearch]) on Marathon Asset's annual reports from the 90's. I read his [amazonsearch]Devil Take the Hindmost: a History of Financial Speculation[/amazonsearch] a while back and loved it. It's of the same category as [amazonsearch]Manias, Panics and Crashes: A History of Financial Crises[/amazonsearch] by Kindleberger Does anyone have letters from Marathon Asset Management? They seem to have outperformed indexes by about 5% annually since inception in 1987 (http://www.marathon.co.uk/International-Equity.aspx,) but more than that the letters would pack a lot of investing wisdom. Neil Ostrer's interviews: 1. From 2014 https://personal.vanguard.com/us/insights/article/marathon-manager-interview-122014 2. From 2007 https://www.phoenix-ir.com/fund_manager/docs/Ostrer_Jan_07.pdf

Thanks Gamecock! This treasure trove just keeps getting better and better. When I got my Distant Force book a couple of years ago I was disappointed to discover that the CD that came along with it did not have any financials. Glad to have access to the reports now. Just curious how you managed to get these reports. Would greatly appreciate if you could PM me. Thanks again!

Does anyone have the redacted versions of their annual reports from 1996 to 2000? I picked up their reports from 2001 a couple of days ago and finished them all in a few sittings. Very high quality stuff.

VIC has a good writeup on Aker http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/112363

Thanks! Quite a wonderful collection of anecdotes packed in there. It certainly gave more color to some of the stories in Cable Cowboy. Another interesting open ended lecture video by Malone where he talks about more recent stuff is the following. I had found it quite interesting as well.

Or as WEB once said "What's the secret of a great marriage? It's not looks, nor intelligence, nor money -- it's low expectations."

One more suggestion: Show recent topics rather than (or in addition to) recent posts on the board's main landing page.

Made my donation. Farnam, I thoroughly enjoy the articles on your blog. I haven't read the notes (will do so after I leave from work), but I'm sure they are as wonderful as your articles are. Thanks again. Great work!

Wonderful! Thanks Prasad.

Added a separate sheet for periodicals to the spreadsheet.

btw you don't have to fill everything. Just put a link and I'll fill in the rest later in the evening.

I've created a google spreadsheet that anyone can add links to their list of favorite shareholder letter to. I've seeded with some of the managers that were mentioned on this thread. Please feel free to add more. https://docs.google.com/spreadsheet/ccc?key=0Aisl_3YDx6vMdGZ2QnloNDJUNmlvS2lVcXFkdDA2RFE&usp=sharing

Great notes brker_guy and cubsfan. Your efforts and contributions are much appreciated.

Search on google using the following verbatim: "Michael Mauboussin" "Share Repurchases" filetype:pdf You might also find the following interesting: http://www.terrysmithblog.com/straight-talking/2011/04/share-buybacks-friend-or-foe.html http://www.terrysmithblog.com/straight-talking/Share_buybacks.zip

Since I didn't see the following link here, I 'm posting it for those interested. Many of the articles in the book can be found here: http://management.fortune.cnn.com/category/tap-dancing-to-work/ or http://www.fortune.com/buffettbook Enjoy! I especially liked the piece on buybacks. I'm also re-reading articles by Mauboussin on buybacks.

Green King, This video has a lot more details. Sorry! it's long but it's worth the time. Rosenfeld was a trader at LTCM. http://video.mit.edu/watch/eric-rosenfeld-15437-presentation-21909-3771/ I also found this interesting: Both FRM and PRMIA had a case study on this as far as I remember. There is also a case study from HBS on this.

Wonderful! thanks farnam. btw, just a long shot, but would you (or anyone on this board) also have the letters from Rick Guerin at Pacific Partners (mentioned in Superinvestors of Graham-and-Doddsville for instance) and I'd second matjone's request for Munger partnership letters. It would be interesting to read Munger of those years. I remember reading somewhere (perhaps Snowball) that he used to run his partnership quite levered.

San Francisco, USA

Thanks! Wonderful piece.

Wonderful! What a treasure trove. Thanks guys!

As always, you're awesome! Thanks Jacob.

All the lecture notes are available at John Chew's page here: http://www.scribd.com/john_chew I remember coming across these a couple of years ago at another user's page. They subsequently disappeared only to resurface recently. Incidentally, one of the lecture notes then , as now, had a reference to john_chew's email address. Enjoy!