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Companies with Centralized Voting Power


no_free_lunch
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It depends upon the character of management, if they are good capital allocators, do not take excessive comp & treat shareholders fair 5% is sufficient if not then a much larger discount is warranted.  One way to look at this discount is capitalize management's excessive benefits/salary @ 10% and divide by the market cap.

 

Packer

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Thanks Packer. 

 

To avoid completely throwing away my research, I was working on Carvana based on a VIC write-up.  Company's growth rate is ~100% and at 2x sales it could be a multi-bagger.  However there is this weird ownership structure where the senior management have effectively all the voting.  Very interesting situation but hard to get a grip on profit margins and then this management thing.  For now I will just watch.

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