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.”
We have shared from Max Roser’s site ‘Our World in Data’ before, and we found his recent summary of worldwide progress striking. By broadening the view beyond the immediate – in terms of time, location, etc. – he demonstrates just how much everyday existence has improved for a large swath of people around the world. We excerpt below from his point on poverty, but the other factors he explores are literacy, health, education, and freedom. We are, in fact, living in unprecedented times.
Leverage creates forced sellers, and not just in the financial markets. Balance sheets should be built for all economic conditions. Having financial flexibility when other market participants are gasping for air is a key ingredient in realizing attractive long-term returns on capital.
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.