Chai with Pabrai Value Investing Masterclass with NUS MBA students at NUS Business School
Jan 26, 2023
Dive into the world of value investing as key principles are dissected. Discover the potential of captive finance companies and the stability of funeral service businesses. Uncover investment strategies amid uncertainty with insights from Silicon Valley Bank and Ipsco. Hear about the power of compounding and the thrill of treasure hunts in investing. Valuable lessons from Warren Buffett and thoughts on Alibaba add depth. Learn how unique opportunities can turn challenges into profitable prospects!
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Value of Captive Finance Arms
- Captive finance companies, like those affiliated with auto manufacturers, have a significant competitive advantage in lending.
- Their ability to repossess and resell financed assets within the brand network creates stable, profitable finance arms.
Stability of Funeral Homes
- Funeral homes have the lowest business failure rate because of limited competition and inelastic demand.
- Two funeral service companies trading at very low PEs revealed a stable yet undervalued industry opportunity.
Earnings Visibility and Investment
- Ipsco, a Canadian tubular steel maker, had long-term contracts giving earnings visibility.
- Its stock price matched two years' guaranteed earnings plus cash, representing a low-risk investment despite uncertainty.
