• Yours To Discover: How Discover Financial Services Is A Direct Play On The U.S. Recovery

    One of the most fascinating observations of the US economic recovery that has many economists and billionaire investors stumped is the anemic growth of the US housing market. Granted, part of this has to do with the massive supply glut generated pre-2008, but I think there are other forces at play.

    I believe housing is not as strongly related to interest rates as investors might think. Ultimately, housing is more closely related to what I like to call 'personal financial stability.' If...

  • Unilever: The Cheap Global Heavyweight Poised For Growth


    If I were to ask you to name me a company trading at +21% ROIC, near 40%ROE with a near 4% dividend yield and immense international exposure, which one would you choose?


    This is a very tough question because there are not many businesses with these benchmarks, but my favorite company that fits this filter is none other than the global heavyweight giant, Unilever (NYSE:UN).


    Unilever is a global consumer goods company that is facing some headwinds from uncertain...

  • Past and Present: How History Can Help You Beat The Market Over The Long Run
    5) Continue to focus on the long-term
    In 2001, the Oracle of Omaha made a fantastic speech to the MBA students of the University of Georgia (seen here ) and one specific example he gave caught my attention. In 1950, Mr. Buffett bought half an interest in a Sinclair Gas station with a friend who was in the Naval Guard. In the early 1950s the station was not doing well and Mr. Buffett eventually lost his entire investment,...
  • Taro Pharmaceuticals: Has Wall Street Overlooked A Pharma Gem?
    At our investment partnership Logos LP, we are in the "business of buying businesses" that are seemingly undervalued or unloved in the global capital markets and there is one company on the NYSE that has tapped our curiosity.
    On July 31st, 2014 this international company experienced an unusual jump in volume. In fact, volume for this issue jumped 50% above normal levels, pushing the stock up nearly 3% that day.
    This company is one of the least...
  • A Force in Farming: How John Deere Will Plough Its Way Ahead of the Market
    I recently read a report written in 2012 by Robert Arnott and Dennis Chaves on value, growth and dividend investing and the results were astounding.
    The duo took an international sample of stocks from 23 developed nations in which they selected the top 1,000 stocks by market capitalization from 1963 excluding only the companies that lack book value data and divided them into two portfolios: 50 percent by market capitalization are assigned to the value portfolio and the remaining...
  • In Transit: Opportunities in Global Transportation and Infrastructure
    4) Transportation, Trade and Infrastructure Will Drive Global Growth
    One of the most incredible statistics that I’ve come across over the past year was in a PwC report involving trends in global urbanisation. The report, researched by Oxford Economics, studied trends in 49 countries on six continents and found that currently the world’s population is growing by 1.5 million people per week . In India, for example, the urban population is likely to rise by some 500m over the...
  • The Consumer is Not Dead
    House Painting
    3) Don't Bet Against the Consumer
    One who is seeking fantastic medium to long term returns in the global financial markets should remember these five words: the consumer is not dead. This can mean a lot of things to a lot of investors as to what sectors or companies are best to allocate capital, but most importantly, this means that despite the current volatility in the Mideast, the continued tapering discussions and talk of an “overvalued” market, the consumer,...
  • The World Is Not Enough: Consider More Exposure To Emerging Markets
    2) Emerging Markets Represent an Opportunity for the Value Investor
    Over the past 12 months, the US stock market – as measured by the MSCI US Equity Index – has risen about 16% and is dancing around all-time highs. Overseas the picture is a bit less clear cut. Europe overall has moved up about 16%, Japan 0.13%, China about 1.3% and Emerging markets roughly 2%.
    Based on data supplied by FactSet, a financial analytics firm, the US equity...
  • Logos LP and Where the Market is Going in 2014 and Beyond
    Logos LP is grounded by a balanced philosophy: ‘Innovation’ and ‘Discipline’. The ‘Innovation’ side of this philosophy suggests considering investments from a perspective which diverges from the norm. For us, this principle consists of viewing potential investments from a unifying and interdisciplinary perspective. As for ‘Discipline’, we pride ourselves upon a rigorous commitment to our investment strategy. This guiding philosophy or ‘vision’ allows us to navigate the uncertainty of the financial markets and establish a set of standards or objectives...
  • Total (TOT): A Value Investor’s Dream?
    True value investors pick unloved dogs trading well below intrinsic value that will in time become stars and reach their full potential. We believe Total (TOT) is a nice case study which offers a look into the mind of such investors.
    Although over the last few years TOT has underperformed most of the other majors, its high risk-high return strategy of inorganic growth projects is coming to a head with promising increases in cash flows and decreasing levels of capex...
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