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Companies -truly long term focused not managing to quarter results?


Nell-e
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Would like to hear opinions about which companies/CEO's are truly long term focused and don't manage to quarterly results?

These are some of the companies I've come across - Berkshire, AMZN, Tesla, Oaktree Capital, Tencent, BABA, JD.com, community banks that have been around for longer than 100 years and have been steadily profitable (i.e. BKUTK, AUBN)

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Thanks for the feedback, globalfinancepartners.  I think I ran across TPL in 2010.  I didn't know how to value it.  I'm very bullish on Texas.  I play it through Prosperity Bancshares (PB) which is another company that is long-term focused.

 

The reason I started this thread was to generate ideas for compounders.

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We manage the business for long-term wealth creation. We cannot directly influence share price, but surely our

share price over time is a report card on our performance. Since I have run Vornado from 1980, total shareholder

returns have been 16.5%(3) per annum. Dividends have represented 3.6 percentage points of Vornado’s annual

return.

 

Our external growth has never been programmed, formulaic or linear, i.e. we do not budget acquisition activity. Each

year, we mine our deal flow for opportunities and, as such, our acquisition volume is lumpy. Our acquisition activity

since 2013 has ebbed in response to a rising market. Acquisitions have been limited to strategic New York retail

properties and creative class, value-add office projects; if we were an industrial company, you might call them bolt-on

acquisitions. We have pushed away from acquisitions that are off-the-fairway, non-strategic or over-priced.

 

220 Central Park South continues its record setting success. In his annual letter, the greatest investor hawks candy,

furniture, jewelry and insurance. So, I guess it is okay for me to remind shareholders here that we are developing

220 Central Park South, the best apartment house in town. Give us a call, we have a few good ones left.

 

Debatable since the more recent track record is less impressive, but he mentions Buffett's annual letter, has a long term per share scorecard, has been in the business forever, and I happen to be reading it and I like to shamelessly pimp my thread.

 

 

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Nestle, AB ImBev, Google.

 

Time will tell, but I think you can put FB into the same fold.

 

Really? Everything I've seen makes me think they are doing the exact opposite. What makes you think they manage for the long term when their initial customers (college students) have completely abandoned them?

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FRP Holdings - Over 20% family ownership

LAACZ - 70% family ownership

 

There are very few followers of these two companies.  You basically own a bunch of real estate in the private market alongside the family at a big discount to liquidation value.  They behave like how a wealthy family would with regard to their real estate portfolio.  There aren't a ton of people following them.  So there is no management to quarterly results.   

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Nestle, AB ImBev, Google.

 

Time will tell, but I think you can put FB into the same fold.

 

Really? Everything I've seen makes me think they are doing the exact opposite. What makes you think they manage for the long term when their initial customers (college students) have completely abandoned them?

 

I am not sure about Vollege students abandoning the,, but ai think they have taken a Lt view monetizing pretties like Whatsup and I also found their desire to reduce fake news and improve the user experience  even if it means less time spent encouraging. Again, time will tell...

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We manage the business for long-term wealth creation. We cannot directly influence share price, but surely our

share price over time is a report card on our performance. Since I have run Vornado from 1980, total shareholder

returns have been 16.5%(3) per annum. Dividends have represented 3.6 percentage points of Vornado’s annual

return.

 

Our external growth has never been programmed, formulaic or linear, i.e. we do not budget acquisition activity. Each

year, we mine our deal flow for opportunities and, as such, our acquisition volume is lumpy. Our acquisition activity

since 2013 has ebbed in response to a rising market. Acquisitions have been limited to strategic New York retail

properties and creative class, value-add office projects; if we were an industrial company, you might call them bolt-on

acquisitions. We have pushed away from acquisitions that are off-the-fairway, non-strategic or over-priced.

 

220 Central Park South continues its record setting success. In his annual letter, the greatest investor hawks candy,

furniture, jewelry and insurance. So, I guess it is okay for me to remind shareholders here that we are developing

220 Central Park South, the best apartment house in town. Give us a call, we have a few good ones left.

 

Debatable since the more recent track record is less impressive, but he mentions Buffett's annual letter, has a long term per share scorecard, has been in the business forever, and I happen to be reading it and I like to shamelessly pimp my thread.

 

Nice; I particularly like the final line re: 220 CP South.

 

Pimp away bro.

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I think a lot of the returns for Vornado is due to the unique circumstances of NYC getting safer, interest rate going from 8-10% to sub 3%, the kale eating crowd crowding into NYC, coupled with a land constraint location.  I know a lot of people who have levered returns in the 20s range who simply bought property in a fringe area in NYC and sat on it for 20-30 years.  They don't speak any English and had no formal education.  So, his track record has to be valued in that light. 

 

Pupil - send me a PM.  Let's chat offline.  There's no agenda on my part to keep crapping on your ideas.  I've seen a crazy cycles in 08 and 09 when SLG traded from over $100 to under $10.  I have a tendency to nitpick.  It's probably because I am a grumpy old man who has failed to keep up with time. 

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Guest longinvestor

A good place to look for such companies are those Tom Russo invests in. Gardner Russo & Gardner. For those who may not be familiar, Tom is widely present on Youtube talking about this very topic, calling those long term companies with the "capacity to suffer". Nestle is one Tom has often spoken of. 

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There's no agenda on my part to keep crapping on your ideas.  I've seen a crazy cycles in 08 and 09 when SLG traded from over $100 to under $10.  I have a tendency to nitpick.  It's probably because I am a grumpy old man who has failed to keep up with time.

 

Sent you a PM, but I encourage you to crap on them. Different perspectives should  be provided.

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Some of the moves Disney has made recently certainly fit the bill of thinking long-term:

 

Buying BAMTech - Bought leader in streaming at a time when most acknowledged streaming was the future but few were willing to invest aggressively in building their own capabilities

Merging with FOX Assets - makes company more internationally diversified, and provides add'l avenue to grow Disney brands internationally

Opening Disney in Shanghai - long in the works, big risks taken in time and capital...

 

There is a potential (likelihood?) that DIS continues to suffer as the cable bundle frays, but DIS is likely to continue to be relevant 10 years from now due to these moves...

 

Others I like:

Danaher

Devin Wenig, CEO of EBAY - Has done a great job reinventing the user experience at EBAY. There is a lot of work to do to compete with AMZN, but the company's increasing growth rates and lower margins (largely due to increased investment) indicate the company was a sleeping giant for a long time.

POST - I always look forward to Post Holdings' calls because hearing the strategic thoughts of Robert Vitale is worth it. They carry a lot of debt, but I think they constantly think about their businesses strategically.

 

 

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Knight therapeutics (gud.to).

 

Taking on huge piles of cash when the stock is high and then just sitting on it due to a dearth of opportunities is long-term in my mind.  Certainly the market hates it.  The company has only been around a few years but the CEO has a track record from his prior gig at paladin labs.

 

EDIT:

 

+1 to Costco, Disney, Danaher, MKL, BAM. 

 

There are some other great idea in here, I will be doing digging on FRP / LAACZ

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