What are you buying today?

[Luke]

On top of it, one of the value investors i respect (Guy Spier), has a meaningful position in them as well.

[throw123]

9 minutes ago, Luca said:

I like the business, good management, opportunistic acquisitions, valuable steaks at a discount to NAV, shareholder friendly, promising goals of growth. Do you have a different opinion regarding exor? Let me know. 

i looked at it years ago but decided against investing in it, your post made me look to see what the stock has done since then but appears not too have done much. It seems to always trade at a discount to NAV as i recall the same bull arguments back then. Also not sure anything in particular pops out to me as showing good management, capital allocation and growth. Ultimately that's what you are buying, is managements ability to allocate capital effectively. 

 

Essentially I was on the fence back then but what convinced me not to invest was when i saw Elkann take a helicopter to his Shareholder meeting. I always worry that family run and controlled companies could be used as a piggy bank and that behavior is ripe in Italy.

[Spekulatius]

@throw123 Exors overhead costs are pretty low though, despite the helicoptering. Exor always will trade at a discount to BNAV, that's a feature, not a bug, imo. I would not add right now to my smallish position, but when the discount to NAV blows out, I certainly would buy more, which is the way those Holdco's should be traded or invested in.

 

Right now, I consider it a solid hold. I never liked the foray into Insurance years ago (buying PRE) but they managed to get out with a decent exit. Now the big question what they do with the excess cash from the insurance sale proceeds?

[Luke]

17 minutes ago, throw123 said:

i looked at it years ago but decided against investing in it, your post made me look to see what the stock has done since then but appears not too have done much. It seems to always trade at a discount to NAV as i recall the same bull arguments back then. Also not sure anything in particular pops out to me as showing good management, capital allocation and growth. Ultimately that's what you are buying, is managements ability to allocate capital effectively. 

 

Essentially I was on the fence back then but what convinced me not to invest was when i saw Elkann take a helicopter to his Shareholder meeting. I always worry that family run and controlled companies could be used as a piggy bank and that behavior is ripe in Italy.

So your points are: 

 

1. Nothing pops out to me as showing good management, capital allocation and growth.

2. Elkann took a helicopter to the shareholder meeting.

3. You are worried that Exor is used as a bank for the family, takes advantage of shareholders (issuing shares, selling shares)

4. According to you, many Italian conglomerates do that. 

 

To comment on point 1: 

 

 

 

Thats a 17.6% CAGR. 

 

Elkann did a lot of good things for exor that strenghtened their businesses on all fronts, good acquisitions (crysler), reorganisation that made the businesses worth a lot more, good returns on sales of business parts, entering new sectors, understand which sectors are attractive. 

 

It wouldnt surprise me if they beat the Index significantly long term!

 

2. Where you at the meeting, where is that info from? 

 

3. Is there any sign they are using shareholders as a piggy bank? I disagree.

 

4. Exor is Exor. 

[brk64311]

US EXOR holders -  are you considering the tax complication due to PFIC ? 

[aws]

BSMX. It has been effectively taken private with 99.8% shares acquired after a recent tender. It gets delisted next week, but you can still tender the shares to the company at the old price of 6.69 after it's delisted. It had been trading for only about a 1% discount so not that interesting, but it randomly dropped 5% today so the spread is looking much nicer and I picked up a big slug.

[Saluki]

VTS, SWBI on the dip. 

 

Bought some NETI over the past few days to hold for 30 days and tax loss harvest my older, higher basis, shares and got lucky on the timing.  

[John Hjorth]

Bought some more SCHOU.CPH [as I have done within the three years or so, on and off]. Furthermore added a very tiny bit to BN.

[Red Lion]

Bought some BAM puts today, have limit orders out for a bunch more. Unfortunately there are no LEAPS available in this name, but I'm just going to try to roll shorter term put options here. I think this is a fairly good hedge for me because I have a large position in KKR/BX/BN/APO/ARES/OWL which trade a much lower valuation than BAM. If the bottom falls out for KKR/BX/BN/APO/ARES/OWL, I'm sure it's going to fall out for BAM as well, particularly since it trades at a higher valuation and has more CRE exposure. 

 

I've been looking to buy puts or debit put spreads on BAM. The $35 strike prices seem pretty reasonably priced, but so far my only fills have come on $30 strikes. 

 

Edit:

 

Got fills and ended up building a significantly large position in puts. Most of the position is in the July $35 PUTS which I picked up at $2.95, but I also have a chunk of October  $30 puts, and I also have a $30/$25 bear spread. 

Edited April 19, 2023 by RedLion

[longlake95]

CVE

[Dinar]

1 hour ago, John Hjorth said:

Bought some more SCHOU.CPH [as I have done within the three years or so, on and off]. Furthermore added a very tiny bit to BN.

What is the thesis on SCHOU CPH?  Thank you

[Spekulatius]

Small add to $USB after earnings.

[John Hjorth]

10 hours ago, Dinar said:

What is the thesis on SCHOU CPH?  Thank you

 

@Dinar,

 

An industrial comglomerate headquartered in Denmark [Århus, Jutland], built from basically nothing about 24 years ago. Consists today of six strong or fairly good global businesses, each of them headquartered in Denmark, + a group HQ. Known for taking risks while investing for the future under headwinds. It has been busy with organic growth, M&A and bolt-ons the last few years, while paying a steady or rising dividend, while it also has been buying back its own stock, without getting levered up too much. I feel that I haven't seen any capital allocation mistakes here yet, now that I think of it. Results appear lagging lately according to some, but to me it's about serious amounts of capital tied up in growth capex and conscious decisions related to net working capital management, both harming ROIC short term. At least around DKK 100 M pre tax in PPA depreciations each year, that aren't real. It looks today much different than when I bought the first shares now almost a decade ago now - and much bigger, and - to me - better, and I think this will also be the case 5 or 10 years from now. Boring to some, certainly underfollowed, some has even called it a *POS*.

[Saluki]

Bought some VTS on the dip yesterday, and I added some NETI, taking it to 2% of my portfolio. 

 

I think NETI is a full position now, but I would buy some more VTS on a dip in my retirement account, (I didn't want to sell anything in there, so I bought most of it in my taxable account, and recently realized I should've sold some positions in my retirement account and bought them back in my regular account, and bought VTS in the tax free account since the 10% tax free dividend is like a 15% taxable dividend). 

 

[edited to add that I sold some BRK this morning in my retirement account to add to VTS on the dip. I plan on replacing the BRK shares in my taxable account as funds come in so I can maintain my original allocation]

Edited April 20, 2023 by Saluki

[aws]

More BSMX at 6.37. Unless I'm very much mistaken you can tender these shares back to the company next week at 6.69 after they delist. It's possible you receive the MXN equivalent which was 122.6 per share, but right now that's even better at 6.79 as the peso has strengthened a bit since the exchange was set.

[_JJ_]

20 hours ago, aws said:

More BSMX at 6.37. Unless I'm very much mistaken you can tender these shares back to the company next week at 6.69 after they delist. It's possible you receive the MXN equivalent which was 122.6 per share, but right now that's even better at 6.79 as the peso has strengthened a bit since the exchange was set.

 

Quote

Please note that the Depositary has been advised that the proceeds from the sale of the Shares by a non-Mexican holder of ADSs would be subject to the general 25% tax rate applicable to the gross sales price or, alternatively, to a 35% tax rate applicable to the gain arising from the sale of the Shares, if certain requirements set forth under applicable Mexican Income Tax Law are met (including appointing an agent in Mexico for tax purposes and filing an ad-hoc tax return). Upon the basis of this advice, the sale by the Depositary to the Repurchase Trust during the Statutory Sell-out period of the Shares underlying ADSs not tendered in the Tender Offer is expected to result in the application of the 25% tax rate to the proceeds of such sale.

https://depositaryreceipts.citi.com/adr/common/file.aspx?idf=6312
Good luck with that.

[aws]

But the very next paragraph:

 

"The Depositary has been further advised that pursuant to the terms of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion and a protocol thereto between Mexico and the United States, as amended (the “Tax Treaty”), a non-Mexican holder of ADSs whose underlying Shares are sold to the Repurchase Trust in Mexico during the Statutory Sell-out period will be eligible to claim the benefits under the Tax Treaty and, as a result, may be exempt from Mexican income tax gains realized from the sale of the Shares provided that such non-Mexican holder owned, directly or indirectly, less than 25% of the Company’s outstanding Shares during the 12-month period preceding the date of such sale, and provided that certain formal requirements set forth in the Mexican Income Tax Law are also complied with.  "

 

The shares are worth about 5% more than they trade for, you might just need to jump through some hoops to ensure full value. May be too much work for some, and I'd probably be happy dumping early for a bit less than the maximum profit to avoid any hassle.

Edited April 21, 2023 by aws

[Malmqky]

More MSGE, WRB, a little EWBC

[Spekulatius]

I added a bit more $ELV

[WayWardCloud]

Sold all my SPHR at open and rolled some of the proceeds into MSGE.

[Jaygo]

GGG. Graco. Not cheap and possibly overearning. Hands down the best of the fluid pumping tech businesses. You buy graco when you demand the best and most reliable. In the contractor segment there is literally no close competitor in quality. Rookies and weekend warriors buy Titan and Wagner but it’s junk once you own a graco unit. 

 

Price paid is too high but I need to anchor and I haven’t bought it since the 30s about six years ago. If it takes a beating I will certainly average down. 
 

had some funds come in and wanted to place it somewhere. 
 

 

[gfp]

1 hour ago, Jaygo said:

GGG. Graco. Not cheap and possibly overearning. Hands down the best of the fluid pumping tech businesses. You buy graco when you demand the best and most reliable. In the contractor segment there is literally no close competitor in quality. Rookies and weekend warriors buy Titan and Wagner but it’s junk once you own a graco unit. 

 

Price paid is too high but I need to anchor and I haven’t bought it since the 30s about six years ago. If it takes a beating I will certainly average down. 
 

had some funds come in and wanted to place it somewhere. 
 

 

 

My wife still reminds me (and others) of the year I bought her a 210ES Highboy for her Birthday...  Pretty funny stuff.  That bad boy is still going strong all these years later.

[Jaygo]

21 hours ago, gfp said:

 

My wife still reminds me (and others) of the year I bought her a 210ES Highboy for her Birthday...  Pretty funny stuff.  That bad boy is still going strong all these years later.

That’s a great unit and a great story. For the first couple years in our first home (total gut job ) all gifts were home related. It was fun and practical. I put Home Depot gift cards in a watch box for her Christmas our first winter. We died laughing. 
“babe you shouldn’t  have” …..”like really! You shouldn’t have”. 
 

long story short graco rocks. I’d say it’s one of the few companies that the engineers are still in control. 

[Saluki]

Added a little JOE and CPNG.   I think there are cheaper things in my portfolio, but none that I'm willing to increase position size right now.  

[CorpRaider]

Bought some more Comcast.  Fine with the cable business and all these Nintendo bullish thoughts got me excited about the flywheel that Brian Roberts has built to generate value from I.P.

Edited April 24, 2023 by CorpRaider