Thoughts on Investing
This manager commentary provides insight into our global, concentrated absolute value investing philosophy and the key tenets that have consistently underpinned our value investing approach.
The purpose of C&B Notes is to pass along ideas, concepts, stories, and information that are informing and influencing our worldview and “latticework of mental models.”
There is no substitute for being on the ground to assess how businesses are really performing. Accordingly, international and domestic travel is a critical component of our research. This Travelogue includes snippets from some of these international trips.
China’s National Bureau of Statistics reports that new home prices dropped 5.7% year-over-year, the biggest annual decline since the survey began in 2011. Month-over-month, new home prices fell in 66 of the country’s 70 major cities in February, up from 64 in January. Premier Li Keqiang has promised to support the national economy if it continues to slide (are there any other pages in a central bank’s playbook anymore?), but the balance sheets of municipal, regional, and the national governments are already over-leveraged from previous stimulus efforts.
If you have been to Disney World recently, you probably have had some first-hand experience with the new MagicBand. A $1B+ investment, the bands are reducing “friction” that have always been part of the park experience. The current nuts-and-bolts of the tool/service, which are already remarkable, appear to only be a sneak peak of how else the technology may transform the customer experience across all of Disney’s properties.