We believe the holy grail of investing is buying capital-light businesses with high ROE, strong balance sheets, and long runways - at or near tangible book value. $META and $MSFT qualify, but at 11x and 19x book, the margin of safety is not there.
Sometimes the better play is capital-heavy firms priced so cheaply the assets effectively come free - think metallurgical coal or offshore drillers today. When they gush cash, the returns can rival the best capital-light compounders.
For additional important information, including the Fund's top 10 holdings, click: https://t.co/kqx6uYDDou. Current and future holdings are subject to risk. Margin of Safety refers to the difference between the intrinsic value of an investment and its market price. Portfolio Manager @MohnishPabrai.
Two kids knocked on my door offering to rake my entire yard for $10 total—and what I did next changed how they'll see hard work forever.
It was a Saturday afternoon when I heard the doorbell. Two boys, probably around 11 or 12, stood on my porch holding rakes that looked almost too big for them. The taller one cleared his throat nervously: "Excuse me, sir. Would you like us to rake your yard? We'll do the whole thing for ten dollars."
I looked past them at my lawn. Leaves everywhere. It was going to be at least two hours of work, maybe three.
"Ten dollars each?" I asked.
They glanced at each other. The shorter one shook his head. "No sir. Ten dollars total. We'll split it."
Five dollars each. For hours of hard labor.
I could have said yes. I could have gotten my entire yard raked for pocket change and called it a teaching moment about negotiation. But something about the way they stood there—hopeful, polite, willing to work—reminded me of myself at that age. Hustling. Trying. Just wanting a chance.
"Alright," I said. "You've got a deal. Get started."
For the next two and a half hours, I watched those kids work. They didn't cut corners. They didn't complain. They raked every section, bagged the leaves, and even swept off my driveway without being asked. When they finally knocked to let me know they were done, they were sweating, exhausted, and smiling.
I walked out with my wallet. "You boys did incredible work," I said, handing them four twenty-dollar bills. "Here's your payment."
The taller one's eyes went wide. "Sir, we said ten—"
"I know what you said. But I also know what two hours of quality work is worth. You earned every dollar of this."
They stared at the money like they couldn't believe it was real. Then the shorter one looked up at me and said quietly, "Thank you. Really. Thank you."
As they walked away, I heard them talking excitedly about what they'd spend it on. And I realized something: we talk a lot about teaching kids the value of hard work, but we don't always show them that hard work actually gets valued.
Those boys didn't ask for a handout. They offered a service. They showed up. They delivered. And in a world that sometimes feels like it punishes effort and rewards shortcuts, I wanted them to walk away knowing that good work doesn't go unnoticed.
If you work hard, if you show up with integrity, if you give your best even when nobody's watching—good people will see it. And they'll bless you for it.
That's not just a lesson for kids. That's a lesson for all of us.
Understand the skepticism but I’m not surprised by the value. There is probably another 10M+ of investment and WC needed to get IL fully built. It sounds like the partner didn’t have the means to contribute their share of it. The industry is severely capital constrained. Operators with access to capital like $GRUSF hold all the cards in this environment. Also, I have to give them credit for being sound dealmakers - see the sub 8% interest rate they got for their credit facility, even lower than what Glass House managed to get from their bankers.
$GRIN.CN $GRUSF I know you have covered this in the past. I think it’s time to revisit. Upcoming quarterly releases should start showing significant YoY earnings growth. NJ sales starting to ramp nicely. Possibly operating and sales in IL and MN next year. Trough pricing in MI and OR at the moment, expected to rebound. Company also looking at distressed assets to purchase and turn around with their cultivation expertise.
Below is $GRUSF NJ sales data from January through the end of June. Based on a rough extrapolation, it looks like units sold have increased 2–3x from Q1 to Q2. While average unit prices appear to have dropped 10–15% over that period, I think we can expect ABCO’s revenue to grow from around $1.8M in Q1 to around $4M in Q2. I would estimate this translates to $2M+ EBITDA for ABCO in Q2. Market data from Lit Alerts.
This company is giving all sorts of red flags right now. Just refuses to report any sort of tangible metrics for their VSDHOne platform. Number of licenses sold do not count until it converts to real orders and revenue for the company. $nurs.v $hydtf