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Talks at Google - John Heins & Whitney Tilson: "The Art of Value Investing"


Guest notorious546
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If I hear this clown Tilson say he made 8x his money on NFLX one more time I am going to lose my *bleep*.  I randomly forwarded in the video and sure enough "by the way I made 9x my money on Netflix."  No dude, on a net basis you barely turned a profit and you kept selling it when it went up so your net return is much less than 9x.  The guy is such a joke.  And he had the nerve to tell Google his fund outperformed the market by a considerable margin since inception.  Just not true.

 

Thanks for the link though.

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At 19:00 he shows a chart of his fund net of fees against the market. Looks like a beat to me. Not anything ludicrous (178% v 120% over 16 years), but squeaking out a win. Most of the outperformance came during the internet bubble bursting, but that's true of most value investors who started in the blessed 1999-2000 vintage.

 

I have a strong distaste for his overlong presentations, his weakly supported theses, and his overly promotional attitude. But let's at least give him credit for what appear to be the facts. If I were lying, I'd show a hell of a lot more outperformance than 3.2% over 16 years, so I'm inclined to take him at his word.

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He actually discussed why and how he was wrong in passing on Google in 2004.

Sales growing 2004-2014 despite slightly declining margins turned 'overvalued' Google in 2004 into a home run.

It also helped that Yahoo was not the strong competition that the envisioned.

;)

 

Let's not forget - he was at the Motley Fool ... where promotion of track record is fundamental to the business model :) (Ever got your inbox bombed by their advertisement ... might as well be buying gizmo X on that makes lost hair grow back and provides you with espresso, too!)

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.....Something seems funky since he closed and reopened as KASE a couple years back.

 

I was going to ask about that, did he have a partner at T2 and now he's independent?

 

Yes, his partner was Glenn Tongue (hence T2). Performance lagged and they decided to split.

 

Maybe performance lagged because Tilson was on CNBC once a week and was obsessively working on his Berkshire valuation. Then writing about how undervalued BRK was........................ all the time.

 

 

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