mercredi 14 novembre 2018

Permanent stocks (new ones)

In august 2016, I wrote something about permanent stocks. A permanent stock is a stock with which you have a romantic relation. You're faithfull to them. You believe in them. You think about them at night. You wanna punch the face of someone saying nasty things about that stock.

At that time, I wrote that my permanent stocks were Alimentation Couche-Tard, CGI Group, Constellation Software, Ross Stores and Dollar Tree.

Dollar Tree went in the trash while all the others are still in my heart.

Some other stocks have entered my heart in 2018, by the moment Dollar Tree was out.

I'm talking about MTY Food group, Boyd Group, Google, Mastercard and Booking Holdings. I see them all as very solid businesses that either operate in a kind of monopoly or duopoly (Mastercard, Google, Booking Holdings) or that are very efficient operators that couldn't get down overnight because they're either very diversified or offer a product that won't fade away (MTY and Boyd).

It goes without saying that I would love to share a moment with the CEO's of these companies. Everybody knows that very rich people spend their time doing some very degenerate stuff like doing coke and make 3 weeks orgies with gay people with AIDS. When you're that rich, you can't do what other people do. You have to reach another level, and usually it's a level besides or over the law. So, perhaps that some of these CEO's do that kind of stuff. Actually, when I take a look at the picture of an highly respected CEO, I always say to myself that this guy has probably a lot of sperm in the ass.

But that's what makes them excellent. So, what's wrong there?  

2 commentaires:

  1. My post is not about orgies but about an interesting I discovered while reading Robin Speziale’s book: Pollard Banknotes

    This company is developing and managing lottery and gaming product. Their services goes from printing bingo cards to developing mobile apps for casual gaming or state-controlled lottery institutions. It is a Canadian based company with a global client base. It is a family managed company since three generations.

    They have a good growth history, non-cyclical business, market cap of 0.6 B$, forward P/E under 20, above 20% ROE and active on acquisition. However, debt about 4 times annual net income, annual net margin at 6% and not quite sure that the ceiling for growth is significant

    Forward P/E: 19
    5 yrs ROE: 24
    5 years eps growth. : X4
    Net margins: 6.2%
    Debts: 3.6x annual net income

  2. Good numbers but I don't like that industry.