Also in this playlist...
This transcript is automatically generated
Stop looking in the rear view mirror and start making risk work.
For you that's the message in fact it's always been the message from set about -- investment advisors president -- -- So good to see spending the last hour of trade with us today and and you've always been the want to -- stop freaking out and get into certain good quality equities.
Yeah I mean at the end of the day you know economies tend to grow over long periods of time.
And -- low value companies that beat expectations tend to do well over time.
And all of these nasty negative headlines which need to remember is that they may not affect what you -- -- all these headlines but Europe for example.
If you own small -- Greek retailers.
I'd be real scared right now -- a little.
-- blackout drinker exactly but but if you own Budweiser or Oracle or Microsoft.
Greece exiting the Euro is a blip on the radar screen these well financed global businesses.
And so as an American that we dollars in Greek banks that only Greek retailers it's just not gonna affect your portfolio that -- We always hear that she's that old boring segment invest like Buffett that's not what we're doing here but you have been a disciple of Warren Buffett and we cover him extensively here and he's arguably the the most successful investor of our time -- What you mean now because he's she -- his behavior just slightly where it's not necessarily buy and hold forever.
It's not and I think the biggest thing he's doing is he's setting up for his legacy in my opinion and I think the biggest place that started was -- the Burlington northern purchase he is basically.
The big issue for his successor is gonna be redeploying all this cash that -- generates every year.
So you -- this railroad which sucks up a lot of that cash suddenly frankly it's harder for a successor to screw up.
He basically sort of narrowed the cone of possibilities for the future.
He's that is railroad that's talking to hit the ball out of the park there's going to be a good solid 12% returning and that's the way people should investors what you're saying.
I think certainly if you're thinking on -- over the long haul singles and doubles will win the game a lot more than home runs well OK you've got three plays that go with this discussion here what are that.
-- so one would be a company called Colfax and this basically was started by the -- Brothers who founded a big industrial conglomerate called -- her.
Dinner her has had amazing success over the past twenty years even the past decade present very slow growth on in the US they've -- -- that earnings at about 16%.
-- the -- for -- appear to have basically gotten bored and they started basically baby -- her only a billion half market cap instead of thirty billion they own 40% of it.
And they bought accompanied recently for about one time sales and the basic value creating mechanism -- by great little -- industrial businesses.
Do make them better rinse and repeat and repeat it's a little bit like imagine if Warren Buffett had 5% of his current asset base.
And you can invest with a focus your next one is Brookfield asset management.
So this is a fascinating company most Americans -- be familiar with the trades in Toronto any trades -- committee company does trade on the New York Stock Exchange.
And essentially what they do is they owned real assets they own property and in -- -- -- world financial center.
They own big toll roads they own power lines they don't Hydro dams that have long stable cash flows.
And so they basically -- pound their own principal about thirty billion -- -- with these assets.
And then they manage money for huge foundations and pension plans -- make money both ways.
And over the past twenty years that compound in about 16% per year.
Great shareholder oriented management that owns 19% of the stocks of their skin in the game.
Great clear shareholder letters much like mr.
It's definitely company I would think in that Berkshire mold -- -- a holding company.
That creates value via asset transact.
Actions -- has done homework and he's doing it for viewing is going to be naming another five or six stocks that you need to write down because.
Listen as he puts it this could be the way to get in -- -- like behavior on that same business model buying stocks that can be slow steady good quality return our.
Filter by section