If it weren’t for oil stocks, as well as my recognition that there are quite a few companies with superior growth rates worth mentioning, I would spend a lot of time talking about just how cheap IBM has gotten in the past two years (and also bring home the point that Benjamin Graham, David Dodd, and Warren Buffett were right when they said that true value investing is not something many people are going to be able to practice in real life because companies can remain cheap for quite a few years, and heck, Abbott Laboratories spent most of the 2000s trading at a discount before the rapid rise in the value of healthcare stocks at the same time that Abbott Labs was spinning off Abbvie). Buffett, personally, chose to get around this point by owning operating companies that gave him regular profits to invest in the stock market, so … Read the rest of this article!
Charlie Munger once wisely pointed out that it only takes one idea to build substantial wealth, noting that he estimated 75% of Berkshire Hathaway’s real wealth came from approximately one dozen investments over the past fifty years despite the company owning thousands of operating companies. Jesse Livermore, at the end of his life, once remarked that the real money that gets made over a lifetime is the result of sitting and compounding rather than selling and shuffling through various investments.
Between 2008 and 2012, MUFG Securities accumulated 13,868,474 shares of Visa (split-adjusted) at an average price of almost $21 per share. This was a total investment of approximately $300 million out of the company’s $4.5 billion overall portfolio, or approximately 6% of the client’s total overall investment capital.
Like many other investment managers, the portfolio managers at MUFG Securities no doubt recognized that Visa was and is the world’s largest … Read the rest of this article!