Circle of Competence
Consistently excellent performance has to be achieved through extensive knowledge of companies and their securities.
scroll →
Consistently excellent performance has to be achieved through extensive knowledge of companies and their securities.
Read the full transcript of the 2022 Daily Journal annual meeting featuring Charlie Munger and Gerald Salzman.
The second annual letter since the inception of Junto.
Being a serious student of the markets is a must for investing success. But the nature of the markets is only part of the intelligent investor’s syllabus. What’s even more important is the lesson of knowing thyself.
Marketers use anchoring to trick you to spend more money, negotiators use anchoring to get in the stronger position, stock investors fall prey to anchoring to their own detriment.
Despite their simplicity, buybacks are poorly understood and often vilified.
How to use the timeless tool of a checklist to reduce the rate of error in important decisions.
While mental models guide comprehension, principles guide behavior.
My blueprint for finding companies to study and buy.
Remember this book reading strategy as you flip through those annual reports.
In life, you rarely deal with situations which are purely risky. Learning to deal with the unknown is more important.
Here are two mental models that explain the nature of the stock market.
On public tenders, company culture, European IT consulting markets, scale advantages, managing people, and M&A integration issues.
On the affiliate model, sportsbook relationships, the history of Better Collective, acquisitive growth, the iGaming industry, regulatory opportunities, data advantages, and potential return.
On the payment ecosystem and its history, distributional strategies, the competitive positions of modern players like Stripe, Square, and Adyen, how Adyen is different from the two others, unified commerce, and a brief on the stock price.
On how Topicus carries on Constellation’s ethos, incentive systems, and strategy, whether it’ll work, the company’s value drivers, capital and ownership structure, challenges, and some thoughts on FCF yield.
On Constellation’s trajectory as an HPC, the economics of a VMS, returns on capital, challenges in organic growth, the runway for M&A, the company’s incentive system, and prospects for the use of FCF.
On Disney’s acquisitive history and digital transformation, how a shift to DTC shifts the economics of the business, and how I would value the company with the subscription business at focus.
On China’s regulatory crackdowns, the history of Alibaba, the arms of the octopus, how Alibaba monetizes its ecosystem, the moat, how Alibaba could fail, how I would value the company, and a note on position sizing.
On Momo’s two-bet social connectivity, its transformation to a dominant online dating player, how live streaming might hit a wall, the value-added potential of integrating core Momo and Tantan, the moat, and how I would value the company.
On how Autohome captures the automobile ownership lifecycle, its big cash position, the capital required for operations, the prospects for future returns on that capital and growth reinvestment, the prospects for returns to shareholders, and how I would value the company.
On how FactSet surfed the wave of data accessibility, the winner-take-most industry, the three main risks of the business, the moat, and how I would value the company through unit economics.
On Prem Watsa, the main drivers of the insurance business, Fairfax’ investment performance, the historic market discount, and the ethos.
On the graphite electrodes industry, the barriers to entry, GrafTech’s vertical integration, its long-term agreements, the easy way to calculate the short-term cash flows, and minority risks.
© 2022 Junto Investments, all rights reserved. The content provided on the Junto Investments (“Junto”) website is for informational purposes only, and investors should not construe any such information or other content as legal, tax, investment, financial, or other advice. Nothing contained on junto.investments constitute a solicitation, recommendation, endorsement, or offer by Junto or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. See our Terms, Privacy Policy, and Disclaimer.