James Richardson

Long Value Investor | Threads about investing in stocks | Focus on fundamental analysis and the great investors | Stand on the shoulders of Giants.

[TheWrap @TheWrap]

#Netflix hit the magic $30-a-share target and has an exclusive window to negotiate a final deal to buy the studio and streaming assets, TheWrap has learned.

See more: https://t.co/FWnOIcirbe

📸 AaronP/Bauer-Griffin/GC Images/Roy Rochlin/Getty Images for Netflix/David Jon/Getty Images for HBO Max

[Sara Fischer @sarafischer]

1/ 🧵Some of my thoughts on regulatory coverage of a WBD deal …

[Culture Crave 🍿 @CultureCrave]

Netflix is reportedly actively exploring a bid to buy Warner Bros assets

• They've hired the bank that advised Skydance on purchasing Paramount

• Netflix also has been granted access to WB's data room and financial details

(via @Reuters)

[Dividendology @dividendology]

Feels like a good time to remember this-

If you invested in the S&P 500 every time CNBC had a "Markets in Turmoil" special?

Your average return after one year would be 40%, with a 100% success rate.

[Kevin Carpenter @kejca]

Warren Buffett: "Who is to say whether it's better to defer a trip to Disneyland that [your family] will get enormous enjoyment out of, so that when you're 75 you can have a 30-foot boat instead of a 20-foot boat?"

"I don't advocate extreme frugality."

[PiQ @PiQMarkets]

👍 The most patriotic thing you can do for your country is your homework.

Dying is easy.
Math is hard.

Give this a watch, it’s funny because it’s true.

[Alex Morris (TSOH Investment Research) @TSOH_Investing]

Some news: I have been working on a book for the past three years, and it has finally reached the finish line. “Buffett And Munger Unscripted” will be released in a few weeks (on January 21st), and is available now for preorder from Amazon, Barnes & Noble, and other major booksellers.

The idea for this book was planted about 15 years ago.

I was a young investor at the time, and Larry Cunningham’s “The Essays of Warren Buffett” was my Bible. As Warren noted at the 1998 annual meeting, he believed Cunningham’s book did the best job of conveying the lessons he hoped to share with investors: “He has done a first-class job of organizing, by topic, all these things that I’ve written… If I were picking one thing to read, that would probably be the one.”

“Buffett And Munger Unscripted” seeks to perform a similar act of synthesis for the countless insights from the Berkshire Hathaway annual meetings. For decades, those meetings were an in-person event with no video recordings. But that changed in 2018, when Berkshire Hathaway released the annual meeting videos back to 1994. While now widely available for all to access, that still presented a daunting task for an individual who hoped to derive insights on a particular topic: in total, they covered about 150 hours and more than 1,700 shareholder questions.

“Buffett And Munger Unscripted” solves that problem.

I reviewed each of the 31 Berkshire Hathaway annual meetings from 1994 to 2024. From the aforementioned 1,700+ questions, I selected the answers that offered the most valuable insights for investors and business people (the hardcover edition is 475 pages). It is organized around a number of important investment and business themes, including the skills and temperament required to be a successful long-term investor, the art of business valuation, defining your circle of competence, thinking about opportunity costs, and many others. While Buffett and Munger have frequently discussed life lessons, politics, etc., those topics are not the focus of this book.

If you are interested in “Buffett And Munger Unscripted”, it would mean a great deal to me if you preordered it today. In addition to adding a valuable investment resource to your library, you will also be providing support to people who are in need of a helping hand: I will donate 50% of my net proceeds from “Unscripted” to GLIDE, a charity Warren has supported for decades.

Thank you for your time.

[WOLF @WOLF_Financial]

At Berkshire’s annual meeting, Warren Buffett was asked the following:

“If you had to start again at $1 million and achieve a 50% annual return, how would you invest?”

This was his answer:

[DogeDesigner @cb_doge]

A conversation between Tesla Optimus bot and a human is the best thing you’ll see on the internet today.

[Clown Wars Down Under 🤡 @clowndownunder]

Matt Barrie says Australia should be the “richest country in the world”

Do you agree or disagree with this opinion?

[Brandon Beylo @marketplunger1]

"Of course Buffett crushed it during his partnership days. Stocks were so cheap. You can't find ideas like that anymore. They're all gone."

Dan Schum: "Hold my beer."

Here was the valuation:

• P/E = 1.1
• P/cash = 0.18
• P/BV = 0.1

Dan bought the stock in 2016.

[Brandon Beylo @marketplunger1]

I love this chart from @VrntPerception on Capital Cycle & Positioning.

The Least Crowded + Capital Scarce Areas:

• Oil & Gas
• Gold miners
• China Large Cap
• EM Large Cap

The Most Crowded + Capital Abundant Areas:

• All things US
• EM Small
• China Small
• Japan

[Business Breakdowns @bizbreakdowns]

Larry Mendelson and his two sons, Eric and Victor, took over HEICO in 1990.

If you invested $10,000 at that time -  you'd have over $6,000,000 today.

A key operating principles has been "push trust down the organization and treat employees as owners".

Rather than just say it, they’ve done it. Their 401(k) plan gifts up to 5% of an employee’s salary in HEICO stock.

That has made over 400 millionaires among their staff, including factory workers and secretaries.

As Larry once said, “I get paid $1 million a year in salary, but if the stock goes up $1, my family makes $7 million. If it goes up $10, we make $70 million. Which do you think I care about more, my salary or the stock?”

The same has been true for his employees and the results speak for themselves.

[Thomas Chua @SteadyCompound]

Terry Smith on why stocks are better than other asset classes.

"Equities can compound in value in a way that investments in other asset classes, such as bonds and real estate, cannot."

[CNBCOvertime @CNBCOvertime]

"I'd rather be a disruptor, than be disrupted," says Disney CEO Bob Iger on his joint venture with Warner Bros. Discovery and Fox.

@JBoorstin #ESPN #sports #streaming $DIS $WBD $FOX #cordcutting

[Stephen Koukoulas @TheKouk]

Noting the profits of Coles and Woolies:

Around $2 3/4 billion in a year.

It they make zero profits and give them back to the 27 million Australians, we'd each get $100 a year. $2 a week.

I look for price gouging in listed retailers and find ... well run companies

[Pythia Cap: Partially Conductive @PythiaR]

$googl at 16x 2025E vs comps at 20-30x 👀

[John Rotonti Jr @JRogrow]

“The hallmarks of increasing returns for a business are rising ROICs and a high market share.” - @mjmauboussin and Dan Callahan

https://t.co/tBems3udFF

[James Richardson @longvalueinvest]

@RBASHAGGER No real estate agents market themselves like Sydney real estate agents.

Expensive videos that show more of the agent than the house. Paid for by the home seller.

Only a matter of time until owners sell their own homes on https://t.co/hGTwesWYbQ, save the 3% commission.

[James Richardson @longvalueinvest]

@TMFScottP I've heard gloating about not paying tax through business "expenses", add in limited debt liability via holes in bankruptcy/phoenix laws, and firing employees for minor issues as long as training was offered. Hard starting, but 100% a sweet spot thats gold for small biz owners.