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Patient Capital newsletter for November 4, 2011: Vito's been buying...


Mark Jr.
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I just received Patient Capital's newsletter this morning (no, I don't have the minimum 500K required to invest with them, but Vito and Domenic were very polite with me when I inquired and added me to their mailing list at my request).

 

The overall tone reminded me of something Parsad said back during the August mini-panic: that there were a lot of businesses out there now who were in much better shape than prior to the GFC, who were now selling at even better prices, compared to their fundamental strength.

 

The main takeaways:

 

Most associate high levels of volatility with increased risk and fear these fluctuations. We

on the other hand view volatility as an opportunity to purchase high quality businesses on

sale.

 

and

 

The purchase of high quality businesses is important for several reasons. Because the

companies that we purchase have successful long term records, several competitive

advantages and strong balance sheets, business risk is reduced. Well managed and well

financed businesses survive all sorts of macro threats.  The probability that these

companies suffer serious financial or competitive threats is quite low even under the most

severe economic conditions.

 

The strength of these businesses gives us comfort in the

knowledge that irrespective of the economic environment or share price fluctuations the

underlying fundamentals are sound. We invest during periods of uncertainty and as a

result, our investments provide us with the time to allow our investment thesis to

materialize. 

 

The entire newsletter available here (4 pages, quick read)

 

http://www.patientcapital.com/newsletters/newsletter-2011-11.pdf

 

 

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