Kone – Profit From Urbanization And The Oligopoly Market

Introduction and summary: This is what makes Kone, a Finnish elevator company,  a potentially good investment: The industry is close to an oligopoly – just four major global players: Otis, Schindler, Kone and ThyssenKrupp (in this rank based on sales). (About 15 years ago all companies were fined for price cooperation.) I believe the four players are unlikely to underbid

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Why Tobacco Companies Have Been A Good Investment

Some months ago I wrote an article about the historical performance of so-called “sin-stocks”. Tobacco companies have performed the best in the US, and alcohol stocks in the UK. In this article I briefly argue for the reasons why and why they most likely continue to outperform. High margins and cashflows: Margins are very high. For example, 27% of the

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Why I’m Long Gjensidige – The Norwegian Insurer

Gjensidige, for non-native speakers an unpronounceable name, is a quality Norwegian insurer. I’ve been long since the IPO in 2010, and below I briefly bring forward some arguments why I still own the stock (and why intend keeping it). Historical performance – boring  is good: Gjensidige has delivered significant alpha since the IPO in late 2010: CAGR of 18%. What

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The Scandinavian/Nordic Dividend Portfolio

Before you continue reading I  want to emphasize that the portfolio below is no recommendation to buy or sell the mentioned securities. I’m no investment advisor. Please do your own due diligence. (Several other portfolios are in the pipeline: The international dividend portfolio, the “skin in the game” portfolio and the “compounding” portfolio.) Below you find my picks for a

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WR Berkley – The Rare Combination Of Both Able Operators And Allocators

We buy back stock when we think it’s attractively priced relative to our assessment of the intrinsic value of the enterprise. – Robert Berkley on the 1Q2020 conference call. The business: WR Berkley (NYSE: WRB) is an insurance and reinsurance company. They do mostly business like excess and surplus lines and specialty insurance. These lines of insurance are less standardized

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The Ethical Portfolio

I’m wealthy enough where I don’t need to own a tobacco company & deal with the consequences of public ownership. -Warren Buffett. ESG investing is on the rise as unethical stocks come with a lot of baggage for publicly followed investors. If you’re a closely followed investor, which obviously Warren Buffett is, you are guaranteed to get asked a lot

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The Unethical Portfolio

Before you continue reading I  want to emphasize that the portfolio below is no recommendation to buy or sell the mentioned securities. I’m no investment advisor. Please do your own due diligence. Below you find a portfolio of 10 stocks that can be labelled as “unethical”. These “sin”-stocks produce goods and services that are legal, but still many institutions are

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Entra – A Safe Haven?

Introduction and summary: Entra (Eiendom) (tickercode is Entra) is a Norwegian real estate company – owner and manager – listed on Oslo Stock Exchange. It was recently included in the OBX-index, the main index that tracks the 25 most liquid companies. The market cap is 22 billion NOK, pretty modest by international standards. Entra will not set the world on

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Future Expected Returns In A Zero Interest Rate Policy (ZIRP) Environment

The last decade has produced fantastic returns in most global asset classes (commodities excluded), helped by enormous interventions by central banks. Can we expect similar high returns in the coming decade? The “new normal” (?): The “new normal” seems to be a low interest policy for the foreseeable future. How do we adapt as investors? Japanese investors have battled with

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The Importance Of Diversification

Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how you can both reduce risk and create better returns by diversifying across regions and assets. Risk is of course measured in volatility, ie. how your assets fluctuate in price. Such a theory was new when it was first released in the 1950s, and Markowitz said

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Dollar Cost Averaging: A Simple And Easy Way To Beat The “Experts” And Build Wealth Over Time

Summary and introduction: Research shows that the majority of investors underperform the broad market indices. The most likely reason is due to frequent buying/selling and behavioral mistakes. When you are trying to “outsmart” the markets, you most likely end up losing to the market. To successfully invest you actually need to do as little as possible. What is required of

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Compounding – The Magic Of A Long-Term Mindset And Delayed Gratification

“Compound interest is the eight wonder of the world. He who understands it, earns it….he who doesn’t, pays it” -Albert Einstein Presumably Albert Einstein said the words above, and likewise Benjamin Franklin said that time is money. Unfortunately, we seem to forget these very simple principles when it comes to most decision making – be it learning, investing or in

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