Actionable Ideas Page

Taro Update

Taro reported their latest quarterly results on Tuesday evening.  Despite the sharp increase in stock price on Wednesday, John and I have both changed our minds on this company's prospects and thus have decided to sell. The thesis rested on a reliable business with a...

Simple Businesses: Flooring Edition

In the near future, I would like to discuss my (and partially John's) approach to filtering by using the S&P 500. One company I was researching as I was thinking about my filters was Floor and Decor (although it isn't in the S&P 500). As a short introduction...

A Bargain Small-Cap in the UK

Vertu Motors (ticker is VTU in London) is one of the cheapest stocks I’ve seen in a while. Vertu owns 124 car dealerships in the UK. I’ve been studying the US dealership owners over the last few months, and I’m still looking at the UK market, but I thought I’d share...

One of the World’s Widest Moats

Tencent has one of the widest moats in the world. With its incredibly valuable WeChat platform, it is poised to continue to dominate China’s commerce and mobile advertising markets.

Biases and Movie Theaters

This post is too long.  I will highlight a few things at the top as a sort of summary: Owner's Earnings is the best number to focus on when valuing a business. We often use shortcuts that are horrible measures of value (comparable valuation, Bull Shit Earnings...

JD.com’s Competitive Advantages

Note: I typically take one post each month or two from this site to publish on my free site. In other words, the free site will see one post for every 10-15 posts that get published here. I may decide to eventually publish this post to the free blog.  A few weeks ago...

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