In 3-Bullet Sunday, I share with you the three most interesting piece of article, video or podcast I came across for the week on investing and growth philosophies.
I. RV Capital’s H1 2022 Letter
Great letter from Robert Vinall. 2022 hasn’t been easy for RV Capital but Robert is a fund manager who has been through multiple crises. His letter is extremely well articulated on how he is navigating through this drawdown.
Some of my highlights:
How he feels about the stocks declining
“What I do enjoy are share price decreases at companies that are buying back their own stock in size. It is an enormous source of immediate value creation for remaining shareholders such as us. I am happy to report, that we own several companies doing this. If such share buybacks were to go on long enough at these or lower share prices, we would end up billionaires.”
Investing in unprofitable growth companies
“I know from experience that the truly great investments are in companies that can grow by reinvesting their cash flow as companies like Ryman Healthcare, AddLife or Wix are doing, for example.”
“What fascinates me as an observer of the global economy is that the current spurt of inflation had little to do with money printing and everything to do with the shortages of all kinds of goods and services resulting from the Covid-19 lockdowns. Once supply chains normalise, this gives me some optimism that the balance between supply and demand will be restored, and inflation will subside. On the other hand, by then we could be stuck in an endless cycle of one supplier raising prices in response to another’s price increases. Like I say, I do not know.”
Credit Acceptance, Prosus, Meta Platforms, Salesforce, AddLife and Carvana