Archive for the ‘ValueWalk’ Category

UBS MD Supports New TCFD Proposal Supports Deforestation Risk Mitigation

By Gabriel Thoumi, CFA, FRM. Originally published at ValueWalk.

As written by Chain Reaction Research, on June 29, the Financial Stability Board Task Force on Climate-Related Financial Disclosures (TCFD) published their final report including key recommendations for the Agriculture, Food and Forest Products sector. The Financial Stability Board (FSB) monitors and makes recommendations about the global financial system with FSB members including all G20 economies, the European Commission and other relevant financial and monetary leaders. Its current chair is Mark Carney, Governor of the Bank of England

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Bruno Bertocci, Managing Director, Head of Sustainable Investors, UBS Asset Management and TCFD member stated:

UBS

By twicepix (http://www.flickr.com/photos/twicepix/3295459278) [CC BY-SA 2.0], via Wikimedia Commons

“TCFD framework enables addressing material deforestation risks in agriculture supply chains and for downstream buyers.” (Interview, July 19, 2017).

Steve Waygood, Chief Responsible Investment Officer, Aviva Investors stated and TCFD member stated:

“The TCFD will be both a mirror and a widow. A mirror as it will help companies study where they can improve their own risk management practices. A window as it helps the market understand where climate risks exist in their portfolios. This is particularly important where those risks are not being managed well.” (Interview, July 19, 2017).

The purpose of the TCFD work is to develop voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear and efficient. They also aim to provide information to lenders, insurers and investors the aids decision making. The TCFD was developed in response to Mark Carney’s Breaking the Tragedy of the Horizon: Climate Change and Financial Stability speech in fall 2015. The FSB chose 32 members to lead the TCFD. These individuals represent financial markets and economic sectors from the G20…
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Dan Loeb – Activism Done Properly Doesn’t Have To Be Bad

By The Acquirer’s Multiple. Originally published at ValueWalk.

Here’s a great interview with Third Point’s Dan Loeb on activism.

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Henry Singleton

Henry Singleton – (“The Best Capital Deployment Record In American Business” – Warren Buffett)

Dan Loeb Daniel Loeb third point capital hedge fund manager activist investor poison pen activism Yahoo corporate governance famous investors

Loeb says that activism done right should impact companies in a positive way. He adds, the benefits that activists provide include:

  • Accountability
  • Taking Companies On A More Positive Trajectory
  • Checks and Balances

But most of all it’s the ideas that activists bring that can help companies maximize performance. New ideas provide recommendations by activists for defense and debate by the incumbent management which should result in increased performance and maximized benefits to shareholders. Here’s that very short interview:

Article by Johnny Hopkins, The Acquirer’s Multiple

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How Will The Empire End?

By Capitalist Exploits. Originally published at ValueWalk.

It was back in the early 1800’s that the Brits left the sodden, miserable shores of their murky island, grabbed their trumpets, tucked their trousers into the socks, and began conquering the world with the cunning use of flags.

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Jeffrey Gundlach: Interest Rates Are Going Up

How Will The Empire End

Like all good conquerors, they had a backup plan in the event flags didn’t work – guns, which – as it turned out – work bloody well.

From about 1815 to 1915, our tea-drinking friends were so successful in this endeavour that the soggy little island in the North Atlantic had turned nearly a quarter of the globe red at its peak.

They were, of course, not the first to embark on empire building.

Ahead of them is a long list: the Babur Empire, lasting from the 17th to 18th century and spanning Europe and Asia. Then there was the “Golden Horde”… the Mongols, who at the height of their reign, incorporated over a quarter of the worlds land mass.

Let’s not forget Pax Romana. The empire lasted 500 years and at its height extended into Africa, Europe, and the Middle East and bullied about a quarter of the world’s population. All impressive in its own right.

The structure was a familiar one. Tried and tested. The state provides security (military) to ensure stability and enforcement of legal contracts. And while this cost a lot of money, in return the vassal states pay taxes to the empire. As long as the taxes exceeded the costs of keeping the restless natives in check things were golden.

As we know this math didn’t last forever for any of…
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Teledyne and Dr. Henry Singleton, Case Study In Capital Allocation

By Brian Langis. Originally published at ValueWalk.

“[Warren Buffett] considers that Henry Singleton of Teledyne has the best operating and capital deployment record in American business.” – John Train’s The Money Masters

How Did Icahn And Kingsley See Investment Opportunities When Others Couldn’t

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Henry Singleton

Henry Earl Singleton, Henry Singleton, Conglomerates, Teledyne, Inc, largest holders of ranchland, American electrical engineer, business executive, rancher, land owner, ITT Corporation, Allegheny Teledyne, great investors, compounding, acquisitions, MIT, capital allocation, capex, dividends, share buybacks, synergies, "Henry Singleton of Teledyne has the best operating and capital deployment record in American business", Buffett, Berkshire

Below is a massive case study of Dr. Henry Singleton and Teledyne. The document states it was edited by John Chew from CSInvesting.org, a great blog to follow. All the credits goes to him. Not a lot of people have heard of Henry Singleton, a person that Buffets consider the best one the greatest capitalists and capital allocators of all-time. An investor who put money into Teledyne stock in 1966 achieved an annual return of 17.9 percent over 25 years, or a 53x return on invested capital vs. 6.7x for the S&P 500, 9.0x for GE and 7.1x for other comparable conglomerates. Here’s the document:

Teledyne and a Study of an Excellent Capital Allocator, Mr. Dr. Henry Singleton

Introduction

Many students of investing know about the great investment record of Warren Buffett but few even know of the man Buffett called one the greatest capitalists and capital allocators of all-time, Dr. Henry Singleton, who built Teledyne Corporation from scratch during 1960 to 1986.

The best investors are avid students of history of the market, companies, and great investors. The more you learn from others, the less expensive your own tuition will be. Not to study the Teledyne story and the managerial success of Dr. Henry Singleton and his management teams would be tragic.

Excerpts are from the book, Distant Force, A Memoir of the Teledyne Corporation and the Man who…
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Why Would Warren Buffett Invest In Sprint?

By Dr. David Kass. Originally published at ValueWalk.

A Smith Brain Trust article published by the Robert H. Smith School of Business, University of Maryland,  “A Little Known Link Between Buffett and Sprint“,  addresses the issue as to why Warren Buffett might be interested in investing in Sprint:

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Warren Buffett

“The Amazon/Google Of Hedge Funds” Warns Of Investing Minefield: looking To Hire More Macro Analysts

SMITH BRAIN TRUST — Why might Warren Buffett be interested in Sprint? The question emerged from an annual gathering of CEOs in Sun Valley, Idaho, last weekend.

Warren Buffett, Warren Buffet, stock market, value investing, bargain stocks, bargain hunting, value stocks, value equities, Warren Buffett quotes, investment methods, investing philosophy Valuewalk, berkshire hathaway

Sprint Corp. Chairman Masayoshi Son engaged two of America’s richest men, billionaire investor Warren Buffett and cable mogul John Malone, about investing in Son’s embattled wireless company. One possible outcome, according to The Wall Street Journal: Buffett’s Berkshire Hathaway would invest $10 billion.

Sprint is losing money and is saddled with more than $32 billion in debt, notes David Kass, clinical professor of finance at the University of Maryland’s Robert H. Smith School of Business. And in recent months, Sprint has held merger talks with rival T-Mobile, and has discussed a potential reseller agreement with cable providers Charter Communications and Comcast, as well as the possibility of selling a stake to them.

At first glance, it would not appear that telecommunications is within Buffett’s “circle of competence,” Kass says.

However, he adds, Buffett’s portfolio managers, Ted Weschler and Todd Combs have previously invested in the sector. “Weschler has been a longtime investor in John Malone’s companies and has a good understanding of the economics of the telecommunications industry, which includes Berkshire Hathaway’s current investments in Charter Communications and Liberty Global,” Kass says. Prior to joining Berkshire in 2012, Weschler held a large…
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Here’s Why China’s One Belt, One Road Is Doomed To Failure

By Mauldin Economics. Originally published at ValueWalk.

One Belt, One Road (OBOR) is China’s ambitious initiative unveiled in 2013. In fact, it’s two plans combined to form a larger framework of new trade routes.

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THIS Is How China Is Increasing Global Power

China's One Belt, One Road

The first of these is One Belt (the orange line in the above map). It refers to the development of new infrastructure—particularly railroads and highways—to connect China’s interior provinces with Europe by way of Russia, Central Asia, and the Middle East. It’s a tall order, and expectations are low that China would be able to build them.

The bigger problem with One Belt is geopolitical. Eurasia is in a state of crisis. Central Asia in particular is one of the world’s most politically unstable places. The region is a patchwork of states whose borders were drawn to make the countries more easily controlled from Moscow during the Soviet era. It is hardly a promising market for Chinese goods.

The other trade route is One Road. It’s essentially a new Maritime Silk Road.

This part of the plan is meant to create more Chinese ports in countries along maritime routes. Which makes sense: About 80% of global trade by volume and over 70% of global trade by value is conducted by sea, according to the United Nations Conference on Trade and Development.

So far, One Road has been a mixed bag for China. It has secured contracts to build ports in Myanmar and Sri Lanka, but a deal with Bangladesh fell through in 2016 when Dhaka opted for an offer from Japan…
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The Most Dangerous Jobs [INFOGRAPHIC]

By Guest Post. Originally published at ValueWalk.

Have you ever felt unsafe at your job? An annual study by the US Bureau of Labor Statistics reports on jobs and sectors by incidence rates of illnesses and injuries. Employment background investigation site, EBI took a dive into the data to determine the most dangerous jobs in the U.S.

The data shows that the most dangerous industry by far is the Agriculture, Forestry, and Fishing sphere. This makes sense when you consider the nature of the work is generally very physical and that the labor is often done in rural areas or at sea — which can be a distance from immediate quality medical care.

Those that work right inside hospitals, however, don’t fare much better. As the third most dangerous industry, health care workers have to deal with long hours and working closely with people who may be contagious.

There are many reasons the medical profession is perilous include possibly mentally unstable patients. Psychiatric staffing takes on a larger percentage of incidents than other areas of medicine. Needlestick injury which occurs when a medical professional is accidentally exposed to a hypodermic that has been used on a patient with blood borne diseases, is another large concern. A peril that is not well known outside the industry is something called “smoke plume” inhalation which means breathing in the carcinogenic byproducts of laser surgery. It is truly awful for the respiratory system and over 500k workers are exposed to this danger annually.

When drilling down into specifically dangerous jobs, the prize for number one belongs to Aquaculture (fishing and fishery work). It stands at the top of the statistics for a few reasons. Partially, because of the general conditions of working with sharp objects in bad weather in a physically demanding industry, but those that work on fishing vessels and in with fish processing also suffer from generally poor safety standards in the profession, something that could be alleviated with better advocacy.

The BLS data also shows exactly what kind of injury you can expect to have if working in a particular industry. For example, the second most dangerous sector, Transportation and Warehousing, is filled with torso and back injury — strains that come from long hours of driving and hauling boxes around.…
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Seth Klarman – Beware of Value Pretenders

By The Acquirer’s Multiple. Originally published at ValueWalk.

With so many articles dedicated to the debate on value stocks vs growth stocks I think it’s a good time to revisit what Seth Klarman calls ‘Value Pretenders’ in his best-selling book, Margin of Safety.

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Here’s an excerpt from that book:

“Value investing” is one of the most overused and inconsistently applied terms in the investment business. A broad range of strategies make use of value investing as a pseudonym.

Many have little or nothing to do with the philosophy of investing originally espoused by Graham. The misuse of the value label accelerated in the mid-1980s in the wake of increasing publicity given to the long-term successes of true value investors such as Buffett at Berkshire Hathaway, Inc., Michael Price and the late Max L. Heine at Mutual Series Fund, Inc., and William Ruane and Richard Cunniff at the Sequoia Fund, Inc., among others. Their results attracted a great many “value pretenders,” investment chameleons who frequently change strategies in order to attract funds to manage.

These value pretenders are not true value investors, disciplined craftspeople who understand and accept the wisdom of the value approach. Rather they are charlatans who violate the conservative dictates of value investing, using inflated business valuations, overpaying for securities, and failing to achieve a margin of safety for their clients. These investors, despite (or perhaps as a direct result of) their imprudence, are able to achieve good investment results in times of rising markets.

During the latter half of the 1980s, value pretenders gained widespread acceptance, earning high, even spectacular, returns. Many of them benefitted from the overstated private-market values that were prevalent during those years; when business valuations returned to historical levels in 1990, however, most value pretenders suffered substantial losses.

To some extent value, like beauty, is in the eye of the beholder; virtually any security may…
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Charlie Munger Interview Q&A AFTER Daily Journal Shareholders Meeting

By VW Staff. Originally published at ValueWalk.




Charlie Munger Interview Q&A AFTER Daily Journal Shareholders Meeting

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Charlie Munger

By Nick (Charlie Munger) [CC BY 2.0], via Wikimedia Commons

The post Charlie Munger Interview Q&A AFTER Daily Journal Shareholders Meeting appeared first on ValueWalk.

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How Do Superinvestors Find The Next 100-Bagger

By The Acquirer’s Multiple. Originally published at ValueWalk.

One of my favorite investing books is 100 Baggers: Stocks That Return 100-1 And How To Find Them, written by Christopher Mayer. It’s also one of the top two books on the bookshelf of Mohnish Pabrai. The other book is 1,000 Dollars and an Idea: Entrepreneur to Billionaire, by Sam Wyly.

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Timeless Reading eBook

Peter Lynch

The book is about 100-baggers – stocks that return $100 for every $1 invested. The inspiration for the book came by way of another book he’d read called, 100 to 1 in the Stock Market by Thomas Phelps.

One of my favorite parts of the book is in Chapter 10: Kelly’s Heroes: Big Bet, in which Mayer writes about the idea of making big bets on your best investment ideas. He provides some great examples from some of our best known Superinvestors – Klarman, Watsa, Ackman and Berkowitz. Here’s an excerpt from the book:

I can’t be involved in 50 or 75 things. That’s a Noah’s Ark way of investing—you end up with a zoo that way. I like to put meaningful amounts of money in a few things. — Warren Buffett

Thomas Phelps wrote, “Be not tempted to shoot at anything small,” the idea being you want to focus your capital on stocks with the potential to return 100x. You don’t want to own a zoo of stocks and ensure a mediocre result.

In this chapter, we explore the idea of concentration in your portfolio. In Zurich, at the ValueX conference, Matt Peterson of Peterson Capital Management presented the idea of the Kelly criterion. This can get mathematical and wonky, but the basic idea is simple: bet big on your best ideas.

It all began with a man named John L. Kelly Jr. (1923–1965).

Kelly was a Texan, a pilot…
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Zero Hedge

Greece Brain Drain: 33% Of Unemployed Looking For Jobs Abroad Vs 11% In 2015

Courtesy of ZeroHedge. View original post here.

Authored by Mike Shedlock via MishTalk.com,

The  Unemployment Rate in Greece is down to 21.7% in April from a record 27.9% in July of 2013 and a record low of 7.3% in May of 2008.

Despite th...



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Phil's Favorites

It's All Happening

How long will this go on? Actually, go ahead and make your prediction in the comments. 

It’s All Happening

Courtesy of

“There are decades where nothing happens; and there are weeks where decades happen.” -Vladimir Lenin

U.S. stocks made zero progress in the seventeen months from October 2014 to January 2016. And in the seventeen months since the February lows, here’s how the following indexes have performed.

S&P 500 +36%

NASDAQ 100 +52%

Russell 2000 +52%

What’s happened in the last seventeen ...



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Insider Scoop

Earnings Scheduled For July 20, 2017

Courtesy of Benzinga.

Companies Reporting Before The Bell
  • PPG Industries, Inc. (NYSE: PPG) is projected to report quarterly earnings at $1.85 per share on revenue of $3.97 billion.
  • Philip Morris International Inc. (NYSE: PM) is expected to report quarterly earnings at $1.23 per share on revenue of $7.09 billion.
  • Union Pacific Corporatio...


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ValueWalk

UBS MD Supports New TCFD Proposal Supports Deforestation Risk Mitigation

By Gabriel Thoumi, CFA, FRM. Originally published at ValueWalk.

As written by Chain Reaction Research, on June 29, the Financial Stability Board Task Force on Climate-Related Financial Disclosures (TCFD) published their final report including key recommendations for the Agriculture, Food and Forest Products sector. The Financial Stability Board (FSB) monitors and makes recommendations about the global financial system with FSB members including all G20 economies, the Euro...



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Chart School

Small Caps Breakout

Courtesy of Declan.

It has taken a few days for Small Caps to make their move but today was the day the Russell 2000 joined other indices in mounting a breakout. It was a clean breakout supported by positive technical strength - putting to bed the June 'bull trap'. Watch for the second round of stop-whips with an intraday move (and recovery) below 1,430.


Other indices added to their breakouts. The S&P gapped and pushed on, backed by higher volume accumulation. Watch for a tag of upper channel resistance.

...

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Members' Corner

Why we need to act on climate change now

 

Why we need to act on climate change now

Interview with Jan Dash PhD, by Ilene Carrie, Editor at Phil’s Stock World

Jan Dash PhD is a physicist, an expert at quantitative finance and risk management, and a consultant at Bloomberg LP. In his thought-provoking book, Quantitative Finance and Risk Management, A Physicist's Approach, Jan devotes a chapter to climate change and its long-term systemic risk. In this article, Ilene interviews Jan regarding his thoughts on climate change and the way it can affect our futu...



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Digital Currencies

I bought my first Bitcoin

 

I bought my first Bitcoin

Courtesy of 

So you are now free to dump all of your crypto-currencies because this surely marks an all-time top.

But I thought I’d mention it anyway.

For those who are curious about why and how, I’ll just say the following…

I’m old enough to realize that just because I don’t see a use for something, that doesn’t mean I won’t be proven wrong by others who do. At the current moment, I don’t see the financial industry use for Bitcoin other than some marginal activities like settling commodity trades that are very far divorced from my day to day existence. I understand the bene...



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OpTrader

swing trading portfolio - week of July 17th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Biotech

Immunotherapy: Training the body to fight cancer

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

Immunotherapy: Training the body to fight cancer

Courtesy of Balveen KaurThe Ohio State University and Pravin KaumayaThe Ohio State University

An oral squamous cancer cell (white) being attacked by two T cells (red), part of a natural immune response. ...



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Mapping The Market

The App Economy Will Be Worth $6 Trillion in Five Years

Courtesy of Jean-Luc

This would be excellent news for AAPL and GOOG to a lesser extent although not inconsequential:

The App Economy Will Be Worth $6 Trillion in Five Years 

In five years, the app economy will be worth $6.3 trillion, up from $1.3 trillion last year, according to a report released today by app measurement company App Annie. What explains the growth? More people are spending more time and -- crucially -- more money in apps. While on average people aren't downloading many more apps, App Annie expects global app usership to nearly double to 6.3 billion people in the next five years while the time spent in apps will more than double. And, it expects the...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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