Price to Tangible Bruce

I'm Bruce, a deep value investor. Buying what most investors don't like across global public markets.

[Price to Tangible Bruce @Tangible_Bruce]

An overused Berkshire Hathaway analogy, or a worthy description? This one now up:

[Price to Tangible Bruce @Tangible_Bruce]

@MebFaber Sowell's Basic Economics is missing from your book list. Probably the best of the lot.

In many ways it's changed my life too.

[Price to Tangible Bruce @Tangible_Bruce]

Sometimes I think I should put 50% of my portfolio into this stock and head to the beach. Another strong set of results for “Japan’s Berkshire”

[Price to Tangible Bruce @Tangible_Bruce]

https://t.co/KKyKNtZ1Ww

[Price to Tangible Bruce @Tangible_Bruce]

Here is my personal warning.

Anthropic and OpenAI have committed to spend trillions; a huge amount of US GDP.

They drive most of the AI capex boom, which again itself is a massive slice of US GDP.

Their revenues are unlikely to grow fast enough to pay for those contracted commitments.

Bankruptcies are probable and the AI capex industry is heading for a savage correction.

Hyperscalers will take large write-downs. Data centres will financially evaporate.

None of this means AI use is going anywhere. AI will remain a sensational force in everyday life.

Be careful what you own. Be mindful of your risk exposure.

[Price to Tangible Bruce @Tangible_Bruce]

Today’s update: “ahead of current market expectations”
An excellent set of results for this super cheap business.
#FSTA $FSTA.L

[Price to Tangible Bruce @Tangible_Bruce]

https://t.co/GdsCJhH4n3

[Price to Tangible Bruce @Tangible_Bruce]

@_austy69420 Yeah all correlates to 1 in a big downturn

[Price to Tangible Bruce @Tangible_Bruce]

Here is my personal warning.

Anthropic and OpenAI have committed to spend trillions; a huge amount of US GDP.

They drive most of the AI capex boom, which again itself is a massive slice of US GDP.

Their revenues are unlikely to grow fast enough to pay for those contracted commitments.

Bankruptcies are probable and the AI capex industry is heading for a savage correction.

Hyperscalers will take large write-downs. Data centres will financially evaporate.

None of this means AI use is going anywhere. AI will remain a sensational force in everyday life.

Be careful what you own. Be mindful of your risk exposure.

[Price to Tangible Bruce @Tangible_Bruce]

@MikeFritzell I reply "nice AI comment" to most. Calls them out and most then delete. Hopefully it goes away

[Price to Tangible Bruce @Tangible_Bruce]

@RagweedCapital Less than earnings can be though?

[Price to Tangible Bruce @Tangible_Bruce]

There’s little value in trying to convince you that a net-net stock is a great business. Usually, it isn’t. Most are mediocre. Some are outright poor.

But the goal isn’t to buy great businesses. It’s to buy businesses worth considerably more than their share prices suggest. Very few other approaches offer that, and the long-run practitioner record backs it up.

You don’t need excellence when the price assumes disaster.

A few of my favourites:

🪑A furniture maker that spent years treading water on a P/E of around 3. Private equity eventually bought it at a 70% premium.
👕A clothing manufacturer with so much inventory I doubted it would ever work out. It did. The company went private at double my entry price.
🧑‍💻A left-for-dead software company, priced as though nobody would ever renew again. It turned profitable the next quarter and nearly trebled over the summer.
🇯🇵Then there’s the basket of Japanese net-nets: mundane businesses delivering such remarkably consistent 20–30% annualised returns that the results were almost as peculiar as they were boring.

There are duds too. But there are enough winners like these that the portfolio does very well.

I write about them. I buy them.

Subscribe if that sounds like your thing.

[Price to Tangible Bruce @Tangible_Bruce]

There’s little value in trying to convince you that a net-net stock is a great business. Usually, it isn’t. Most are mediocre. Some are outright poor.

But the goal isn’t to buy great businesses. It’s to buy businesses worth considerably more than their share prices suggest. Very few other approaches offer that, and the long-run practitioner record backs it up.

You don’t need excellence when the price assumes disaster.

A few of my favourites:

🪑A furniture maker that spent years treading water on a P/E of around 3. Private equity eventually bought it at a 70% premium.
👕A clothing manufacturer with so much inventory I doubted it would ever work out. It did. The company went private at double my entry price.
🧑‍💻A left-for-dead software company, priced as though nobody would ever renew again. It turned profitable the next quarter and nearly trebled over the summer.
🇯🇵Then there’s the basket of Japanese net-nets: mundane businesses delivering such remarkably consistent 20–30% annualised returns that the results were almost as peculiar as they were boring.

There are duds too. But there are enough winners like these that the portfolio does very well.

I write about them. I buy them.

Subscribe if that sounds like your thing.

[Price to Tangible Bruce @Tangible_Bruce]

@TheStalwart It's still 1.4 trillion ways to lose your money

[Price to Tangible Bruce @Tangible_Bruce]

Announced today: A £9m buyback on a £16m stock. Nanocaps ❤️
#NTBR $NTBR.L
One of my top holdings:

[Price to Tangible Bruce @Tangible_Bruce]

https://t.co/0oZvnBeejs

[Price to Tangible Bruce @Tangible_Bruce]

Never fall in love with a stock.

Fall in love with the research process.

[Price to Tangible Bruce @Tangible_Bruce]

Never fall in love with a stock.

Fall in love with the research process.

[Price to Tangible Bruce @Tangible_Bruce]

What market correction?

This net-net up 18% in two weeks since posted, following a tender offer.

Buybacks, insider buying, tender offers.

Buy cheap stocks, not the overpriced popular names.

[Price to Tangible Bruce @Tangible_Bruce]

Just heard a fairly popular podcast say they started reading Security Analysis but didn't finish it because it wasn't applicable to modern times.

And that, my friends, is exactly why it still works...

[Price to Tangible Bruce @Tangible_Bruce]

What market correction?

This net-net up 18% in two weeks since posted, following a tender offer.

Buybacks, insider buying, tender offers.

Buy cheap stocks, not the overpriced popular names.

[Price to Tangible Bruce @Tangible_Bruce]

https://t.co/jr5HEaQIcK

[Price to Tangible Bruce @Tangible_Bruce]

Just heard a fairly popular podcast say they started reading Security Analysis but didn't finish it because it wasn't applicable to modern times.

And that, my friends, is exactly why it still works...

[Price to Tangible Bruce @Tangible_Bruce]

@MikeFritzell Michael is saying the quiet part out loud.