Category: Stock analysis

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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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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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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Investors Title: Family-Controlled, Operates In An Oligopoly And Well-Managed

Investors Title (listed on Nasdaq with the tickercode ITIC) was for me an unknown company until about a week ago when I came across this article on Seeking Alpha written by Capital Ideas. The article is an interesting deep-dive into a highly profitable and well-managed small-cap (market cap is only 260 million). My article is mostly a recap of Capital

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Svenska Handelsbanken Analysis- The Best Nordic Bank – Has The Best Moat There Is: Culture

Svenska Handelsbanken (called Handelsbanken in the rest of the article ) was founded in 1871 and is the oldest listed company on Stockholm Stock Exchange. The Bank has a nationwide branch network in Sweden, the UK, Norway, Denmark, Finland and the Netherlands. I have been long this stock for some years, and I believe this is the best managed bank

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Some Thoughts On Markel (The “Mini/Baby” – Berkshire) And Its 2019 Shareholder Letter

Berkshire Hathaway needs no introduction, but what many investors might not know is the existence of several “Mini-Berkshires” or “Baby-Berkshires”, companies that are much smaller but in many ways similar both in business model and mindset of the management. One of these companies is Markel Corporation which is traded on the NYSE and has the tickercode “MKL”. Previously I have

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Alleghany Corporation: A Boring, But Compounding, “Mini/Baby-Berkshire”

Berkshire Hathaway needs no introduction, but what many investors might not know is the existence of several “Mini-Berkshires” or “Baby-Berkshires”, companies that are much smaller but in many ways similar both in business model and mindset of the management. One of these companies is Alleghany Corporation which is traded on the NYSE and has the single tickercode “Y”. In this

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Diageo: A Premium Sin-Stock

Diageo is a sin stock and those stocks have performed the best over the last century. This analysis argues for why this is likely to continue. Background and summary: Diageo produces alcohol – lots of it – hence a “sin-stock”. Tobacco and alcohol stocks have produced spectacular gains over the last century, and Diageo is not different: 12% CAGR since

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Why It Makes More Sense For Exxon To Buy Back Shares Instead Of Paying A Dividend

Last week I wrote an article about how you can create your own “dividend” by selling shares. Many investors have an irrational dividend bias: Benjamin Graham wrote in the Intelligent Investor that a rising dividend has the potential of attracting “ignorant coupon clippers” – not business owners. I believe too many shareholders in ExxonMobil (XOM) are in the “coupon clipper”

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Chr. Hansen Holding AS: Wide Moat, But Management Has No Skin In The Game

This article contains some brief notes on Chr. Hansen Holding AS, the famous Danish enzymes, food/nutrition and natural colors company. The article is just a short presentation of the company and writing is kept to a minimum and mostly in the forms of bullet points. The business and some history: Chr. Hansen is a Danish company that supposedly touches about

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