Ideas

S&P Global: A Collection of Great Businesses

Mar 01, 2017

S&P is best known for its credit ratings business. Credit ratings denote a company’s financial strength through assessing its ability to meet its debt commitments. Together with Moody’s, S&P is a government sanctioned duopoly…

Ideas

Visa: One of the Best Business Models Ever

Feb 28, 2017

Apart from Google, Visa is the best business model we have ever seen. It is essentially a royalty on global spending. Visa is the ultimate network effects business, with retailers dependent upon the vendor…

Ideas

Software Feedback Loops Enable Winner-Take-All Markets

Feb 27, 2017

“In normal markets you can have Pepsi and Coke. In technology markets in the long run you tend to only have one…. The big companies, though, in technology tend to have 90 percent market…

Ideas

Why Alibaba Is Our Second-Largest Holding

Feb 26, 2017

We have studied Alibaba for a long time beginning with our investment in Yahoo, which represented a backdoor way to acquire Alibaba, not publicly traded at the time. In our year-end 2013 letter, we…

Position Commentary: GIFI, SMID, PICO, MLP

Feb 25, 2017

At the close of 2016, we wanted to provide an update on several investments that were highlighted in prior investor letters as attractive investment opportunities. In doing so, we hope to review our security…

Portfolio Updates

Feb 17, 2017

Creston Creston, a smaller holding, was bought out by its largest shareholder in November. While we were cautious of this shareholder’s intentions, we had been comforted by the presence of unrelated large shareholders, whom…

Ideas

My Investment Thesis on Gaia

Feb 13, 2017

Gaia Inc (“GAIA”) is a situation where Mr. Market appears willing to pay you several million dollars to own a nichey, asset light, negative working capital, highly scalable streaming video on demand (“VOD”) business…

Quick Updates on CYH and GNC

Feb 11, 2017

Don’t judge each day by the harvest you reap but by the seeds that you plant – Robert Louis Stevenson The Fund initiated a position in Community Health Systems, Inc. (“CYH”) post-election, which outperformed…

Top 5 Holdings Snapshot

Feb 09, 2017

As of year end, our five largest holdings are GAIA and in alphabetical order: EZCorp (EZPW) – EZCorp was our best performing individual name in 2016, a title I suspect it will continue to…

Why We Invested in Gaia

Feb 08, 2017

“We don’t get paid for activity, just for being right.” —Warren Buffett, 1998 Berkshire Hathaway meeting We made one new significant investment in the second half of the year, which brings the grand total of…