Credit Acceptance Corp: Excellent Operators And Allocators – Great Compounder

Credit Acceptance Corp has proven to be disciplined loan underwriters, a prerequisite for good long-term performance. Has a clear and rational strategy for allocating capital. Owner-operated, meaning management has the same skin in the game as outside shareholders. Their business model sets them apart, and might turn out to be countercyclical in a recession. However, the industry is competitive and

Continue reading

Comcast: A Recession “Proof” Compounder

Introduction and summary: Comcast (tickercode: CMCSA) is the world’s second biggest telecom company and headquartered in Philadelphia, USA. The company was founded by Ralph Roberts in 1963 and has largely grown via M&A. I’m long Comcast since late summer 2018 and consider this a long-term holding that will compound for years to come. My main reason for buying was twofold:

Continue reading

Constellation Software – Takeaways From Mark Leonard’s Shareholder Letters

This article contains a brief description of Constellation Software, some thoughts on its competitive advantages and excerpts from Mark Leonard’s excellent shareholder letters. The excerpts are quite long, about 5 000 words, and I recommend going to the source to read all letters. This article has only small samples of Leonard’s wisdom. Mark Leonard: Mark Leonard, an Englishman and former

Continue reading

The Perils of Selling Short

I signed my first client and proceeded to short my first stock. It almost proved to be my last. Over the next few weeks, I watched the stock trade up to 20, then 30, then 40, finally breaking through 50…..But when the stock climbed past 50, I started to cover, unable to stand the pain. It was too late, however,

Continue reading

Taxes And Compounding

To shelter your savings from taxation while building your nest egg is extremely important. I believe this is pretty obvious for most investors, but I suspect it’s still neglected because the headwind takes about ten years to really make a difference. Unless you have a tax-sheltered account you will take a beating whenever you receive a dividend or sell a

Continue reading

The Management Myth – Debunking Modern Business Philosophy

I guess most readers of my website have read books by management gurus like Jim Collins and Tom Peters, and many more have probably studied Micheal Porter’s Competitive Strategy. But the “problem” with business theory is that it’s solely built on case studies and has not been tested scientifically. Matthew Stewart’s The Management Myth – Debunking Modern Business Philosophy “debunks”

Continue reading

Famous Quotes By Warren Buffett

I believe Buffet’s annual letters are an invaluable source of investment knowledge. I recently reread all of them, in addition to rereading Lawrence Cunningham’s The Essays Of Warren Buffett – Lessons For Investors And Managers, a book containing excerpts from all the annual letters.  I have read the annual letters a few times, but I keep rereading them  at 2-3

Continue reading

Stocks, Investing, Real Estate, Charlie Munger And Inverse Thinking

Charlie Munger likes to think inversely. Inverse thinking simply means focusing on the things you don’t want to happen. Munger didn’t invent this concept, but he has made it immensely popular. While Munger turns the question on its head, he touches upon a very important aspect: how to avoid mistakes. Why does inverse thinking help? Munger says inverse thinking avoids

Continue reading

Should You Trade Or Invest?

I sometimes receive e-mails from potential traders that want to get “rich” trading. I tell them to instead consider investing their capital for long-term appreciation, preferably via passive or active mutual funds. This is why: The chart shows 10 000 invested annually for 30 years with 9% return: after 30 years you have almost 1.4 million in assets. Not bad!

Continue reading

My Favorite Quotes from Atul Gawande’s The Checklist Manifesto

Some weeks ago I published an article about what investors and traders can learn from Atul Gawande’s The Checklist Manifesto. I like to take notes when I read (see my notes  on the pic to the left, excuse my eight-year old handwriting). I believe this is a fantastic resource to revert to later. Better, though, is reading a good book

Continue reading

What Investors And Traders Can Learn From Atul Gawande’s The Checklist Manifesto

This weekend I reread The Checklist Manifesto, a book published in 2010, which argues the case for a systematic approach to our daily work as professionals. Below you find arguments for why I believe a checklist should be a part of the toolkit of any aspiring speculator or investor. Both Charlie Munger and Warren Buffett use checklists. Buffett has a

Continue reading