samedi 6 janvier 2018

Jason Donville VS Chuck Akre

Poor Jason Donville. The returns for his fund have been very bad for the last 3 years. On Donville Kent's website, the performance of december 2017 isn't written yet, but for the first 11 months of the year, the performance has been about 8,4%. Let's say that the performance of december has been pretty good and the performance for 2017 has been about 10-12%. It's OK but not that good.

The last 3 years for Donville Kent would look like that: 

2017: 10-12%
2016: -1,66%
2015: 4%

Some devouted fans may say that it's only a bad period and Jason will come back stronger than ever. Perhaps. But three bad years in a row is probably way beyond what a client of a fund may be able to swallow. It looks like small caps with high ROE didn't do what they should do.

Now, let's take a look at Chuck Akre.

According to this website (perhaps there's some mistake, I haven't trianguled my sources of information), the average return annualized over the last 3 years is 28,63%.

Isn't that bloody incredible? At this moment, you should stop reading this post, sell everything you own and build an exact copy of Akre's portfolio. Don't tell me that's luck, don't tell me that's conjoncture. Nobody without an incredible talent could get a 28,63% annualized return.

Just take a look at Akre's biggest positions over the last year:

American Tower (13,5% of the portfolio): UP 34%
Moody's (11,5% of the portfolio): UP 55%
Mastercard (11% of the portfolio)): UP 44%
Markel (8% of the portfolio): UP 25%
Visa (7,5% of the portfolio): UP 43%
Dollar Tree (6,1% of the portfolio): UP 39%
O'Reilly (6% of the portfolio): DOWN 14%
Carmax: (5,7% of the portfolio): DOWN 1%

What more do you want? Akre invests in large or giga caps and he's still able to get such returns. That guy deserves a blow job from all of us!

11 commentaires:

  1. Same Jason or only a coincidence?

  2. I don't know how exactly Donville is invested, but from what I read on this blogs, it looks like he lost a lot on some stock whereas Akre don't.

  3. Penetrator wrote:
    "What more do you want? Akre invests in large or giga caps and he's still able to get such returns. That guy deserves a blow job from all of us!"

    ~tosses Penetrator a long rubber glove~
    How about a hand job from one of us and we call it even?

    Seriously now, Akre is a genius. The funny thing is he spent his time in University studying English Lit. This is the kind of program of studies that usually results in extreme poverty and a career where the single most important question that you must ask on the job is: would you like fries with that?

    I believe it was Akre who coined the term COMPOUNDING MACHINE.
    Here's a 27 minute interview with Chuck Akre where he clearly outlines and explain his investing style:

    If you understand what a compounding machine stock is and how to identify them, you're going to reach a whole new level of investment success.

  4. Some really bad news for Tucows investors. A nasty hit piece is out.
    As luck would have it, I sold out of Tucows on Monday after the constant volatility and big down days even on good days got to me.
    Here's a seeking alpha link on tucows:

    p.s. My opinion of small cap has really soured since taking to heart the November article by my investing idol Penetrator about Google and Facebook. I think we small cap investors are taking extra risks for nothing. I now own Facebook, Google, Visa and even Amazon. Think about the age we live in. We shop online and pay Amazon. the businesses advertise online and pay google and facebook. Then we charge it and we pay Visa on our outstanding balances (and the merchants pay Visa also). I've had enough of the stress and volatility of small caps. the worst is seeing your small cap stock go down and not knowing why it's going down. You contact investor relations and they play stupid. With huge companies everybody knows what's up at all times.

    1. I think the extra risk is from watching day to day changes in stock prices and reacting to the volatility. Small caps are easier to manipulate than large caps so of course they are going to take the blunt of the bullshit from influential price makers. The short report is weak. I have no plans on selling due to volatility, this is a long term hold for me.

      To bump up my large cap stock holdings I'm averaging into a Healthcare & Technology Mutual Fund (RBC series D to be exact). Hate paying the fees but it's easiest way for me to get a position in these large cap names. Over the last year with the market so hot I'm hesitant to go all in at once and would rather average in. It's worked out OK so far.

    2. The volatility we would see in TCX (it would go down a lot on some very positive days for the general stock market was INSIDERS dumping their shares over and over again). I have a quote:

      "Tucows failed to disclose a lawsuit "that should imminently result in the loss of 11% of the Company's revenue producing domains; nine insiders who sold $21 million of stock while hiding the fact its eNom subsidiary was being sued by its largest partner for breach of contract"

      I contacted investor relations last week and I knew that they were losing something like 4 million domain names. I asked: why is the stock going down? They said: we have no news. He should have at least told me that there's been a lot of insider SELLING lately. If they were honest they'd even tell us the why behind the insider selling.

      here's a link to an ambulance chaser/ lawyer's case against Tucows:

      Tucows can survive this but a THINLY traded stock under attack is very vulnerable. I know the short seller is a scum bag. But I prefer to watch from the sidelines. I got out 18 cents from the high of the day on Monday. Something tells me I'll be able to buy back in for much less in a couple of weeks if I wanted to.

  5. the link to the actual hit piece from copperfield on tucows:



    Tucows Chairman Sells 100% of His Stock; Nine Other Insiders Follow

    Based on documents in the Namecheap lawsuit, it appears Elliot Noss and the Tucows management team knew as early as January 20th, 2017 that Tucows would lose more than 3.2 million domains, or 11% of total domains. As discussed throughout this report, Tucows has withheld disclosing this material liability and lawsuit to investors, while recognizing revenue and EBITDA from Namecheap domains that were only under the Tucows umbrella because Tucows had breached the Master Agreement contract.

    How significant were the insider sales and how much money did they make?
    From February 10th through December 15th, 2017, nine different Section 16 insiders (including both Co-Chairmen of the Board and both CFOs) filed twenty-six different Form 4’s disclosing insider sales with the SEC. In total, insiders sold 401,960 shares for at least $21,269,138 of proceeds while management hid the imminent adverse loss of the Namecheap domains from shareholders, and failed to disclose ongoing material litigation that Tucows
    itself claimed could “wreak havoc and confusion.”

    No insider has been more aggressive and consistent in selling stock than Rawleigh Ralls IV, Tucows Co-Chairman since 2012. In fact, as disclosed by his Form 4 filed with the SEC on December 15, 2017, Mr.
    Ralls has now sold 100% of his stock. And to be clear, Mr. Ralls’ open market sales were not insignificant considering Form 4 filings show he beneficially owned more than 900,000 shares in 2014.
    Source: SEC Form 4 filings,

    Note: adjusted for 1-for-4 stock split on 12/31/2013
    While the absolute number of shares sold by Mr. Ralls are startling, his pace of sales during the period in which we believe management withheld material information appears problematic."//

    I would see the name Rawleigh Ralls IV selling over and over and listed as a DIRECTOR. I did not know he was co-chair. I figured some early investor is moving on to some other opportunity. Mr Rawleigh Ralls the fourth is a serious piece of shit. I hope he ends up in jail or at least the SEC makes it impossible for this guy to sit on any board of directors of a publicly traded company.

  7. Here's an exchange from last week between me and Tucows investors relations guy:

    Investor Contacts
    Requests for Investor Information

    I wrote:

    I'm a shareholder in Tucows. Can you tell me what caused the stock to go down about 10% on heavy volume on January 2?

    Is the decline due to: eNom v Namecheap news? Something else? I like this company...but it's so small and you're left entirely in the dark as to why it is going down. Every other stock I own, I know quickly enough why the stock is declining sharply on any given day. The information is disseminated quickly with the bigger companies. Should we be worried that Tucows was down sharply on what was a hugely positive / bullish day for the stock market in general?//

    The reply:

    Thanks for reaching out. We’re not aware of any specific rationale for yesterday’s trading activity.

    I’m happy to discuss live by phone if you have further questions.



    Lawrence Chamberlain
    Tucows Investor Relations//

    Playing stupid when the other guy is clueless? maybe you can get away with. But I heard the news about the lawsuit by reading an article on Tucows on Seeking Alpha (somebody in the comments gave us the news...the guy who wrote the article was clueless).

    Tucows is not the straight shooters I thought they were.