by capital flowing

Weekly Challenge

One of my new years resolution is to upload every week a short brief of a public company that has attracted my attention, either for its business model or for its price.

I have been reading a lot of business books for the last couple of years, I think is time now to force myself and apply what I have learned in the real world.

I understand that in order to invest in equities is necessary to have long term horizon. That is why the purpose of these analyses is not necessarily to invest rather than to learn.

I am planning on going for an MBA in 2 years, so I should keep my money somewhere with lower volatility.

by capital flowing

Economía Austriaca

56164ba951d3fe66288b4568-__grande__He leído el libro “La Escuela Austríaca” escrito por Jesús Huerta de Soto, dónde habla acerca de los orígenes de la Economía Austriaca. Este libro lo compré hace un año, ya que estaba recomendado en el libro de Paramés “Inviertiendo a Largo Plazo”,  y recuerdo que no me llamó mucho la atención al principio, y preferí leer la autobiografìa del tenista Agassi.

Poco a poco me empezó a interesar más esta escuela de economía después de leer varios artículos y videos compartidos en las redes sociales de Value School .

Me gusta que esta escuela de economía se basa principalmente en la acción humana y no en el intervencionismo del estado. Yo estoy de acuerdo con ellos en que el empresario es el principal agente en crear nuevas oportunidades,  mejorar y ofrecer nuevos productos y servicios de lo actualmente en el mercado.

Me llama la atención de esta escuela es que no se basan en modelos complejos matemáticos para llegar a una respuesta, ya que son tantas variables que están compuestas en la vida diaria de las personas que es muy difícil poder juntar todas las variables dentro de un mismo modelo. Esta escuela se basa más en la parte psicológica de los humanos y en como tomamos las decisiones diarias.

Siento que todavía me falta leer más acerca de los economistas Neoclásicos, de Chicago, y de la escuela austriaca para saber bien las diferencias y poder tener un entendimiento más profundo de todo esto, pero me gusta que esta escuela sea muy lógica y subjetiva como lo somos los humanos.

 

 

by capital flowing

Cobas Asset Management

I have decided to invest in Cobas Asset Management, a Spanish Fund founded by Francisco García Paramés. I would prefer to analyze my own investments, but  I have decided to trust my money to them as I like the long-term value investment philosophy they follow and I do not have the time to analyze and understand the potential investments as I would like.

I have invested in their open-end investment fund, Cobas Seleccion F1, with the objective of achieving a sustainable return by investing in undervalued companies.

The Fund invests at least 80% of its assets in equities mainly in the OECD markets and 40% in emerging markets. The rest of the total exposure will be invested in fixed-income instruments.

Principal Holdings

Aryzta AG 8,71%

Israel Chemicals Ltd 6,09%

Teekay LNG Partners LP 5,31%

Teekay Corp 5,28%

Dixons Carphone PLC 3,73%

 

Bloomberg link: https://www.bloomberg.com/quote/COBASFI:SM

by capital flowing

The Dhandho Investor

51gn-ygw5ol-_sx330_bo1204203200_Continuing the path of becoming a value investor I have read a couple of books lately on the subject. I feel that I’ve got to a point where these books are a little repetitive, I feel that now I need to put this knowledge into practice.

One of the books I read was the Dhandho Investor written by Mohnish Pabrai where he explains his investment low-risk value method to high returns. Mhonish started first as an entrepreneur and later got into the investment business, and has replicated Warren Buffet’s investment methodologies and practices. He starts the book by explaining how the Patel’s in the US naturally use this investment method, and how they have applied it since arriving to the US. Most of the motels and hotels in the US are owned by Patel’s who come from the Indian State of Gujarat. They are hard workers and invest in opportunities at the right moment, they are patient and constantly looking for new opportunities, but get into the investment at the right moment.

I liked Mohnish comment about the stock market, he mentioned that while private businesses can offer higher returns in general than the stock market, it is a great opportunity to have platforms that allow us to purchase public stocks from a great range of mature companies.

I really enjoyed the book, it was a little repetitive from other value investing books, but with a slightly different approach.