Author Topic: Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports  (Read 11065 times)

vikx01

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I just started reading the following book a couple of days ago. Seems to be an amazingly good read so far. There are lovely excerpts from their annual reports on what they call the "Capital Cycle". There is some very good industry analysis.

 
Capital Returns: Investing Through the Capital Cycle: A Money Manager's Reports 2002-15

Once I finish this, I'll try to get a hold of his (Edward Chancellor's) previous book (Capital Account: A Fund Manager Reports on a Turbulent Decade, 1993-2002) on Marathon Asset's annual reports from the 90's. I read his Devil Take the Hindmost: a History of Financial Speculation a while back and loved it. It's of the same category as Manias, Panics and Crashes: A History of Financial Crises by Kindleberger

Does anyone have letters from Marathon Asset Management? They seem to have outperformed indexes by about 5% annually since inception in 1987 (http://www.marathon.co.uk/International-Equity.aspx,) but more than that the letters would pack a lot of investing wisdom.

Neil Ostrer's interviews:
1. From 2014 https://personal.vanguard.com/us/insights/article/marathon-manager-interview-122014
2. From 2007 https://www.phoenix-ir.com/fund_manager/docs/Ostrer_Jan_07.pdf


Borgesian

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Hey where did you get your copy of Capital Returns? Amazon doesn't have it available yet.

vikx01

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I got mine (kindle book) from Amazon.com (the US site.)
I'm 3/4th way through it and it's a very good book indeed.

There is one place where he (likely Ostrer) quotes Johann Rupert (of Richemont) as this:
“No, no, no, no. I didn’t lose a lot of money when I tried to sell the business. I lost the money when I bought the bloody thing. That’s when you park your money, it’s not when you try to find a bigger idiot than you to take it off your hands.”

...simply classic.

Here's another:
“[There are] three stages of [an] acquisition, which [are] euphoria and then disillusionment. And the next thing is looking for somebody to blame for buying the place.”

and a funny but profound one ...
“The grass is always greener on the other side of the fence. But you only find out when you climb over that the reason why it’s greener is because of all the cow dung hidden in the grass. And as soon as you start stepping in all this stuff then you wonder why you ever crossed the fence.”

Borgesian

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I got mine (kindle book) from Amazon.com (the US site.)
I'm 3/4th way through it and it's a very good book indeed.

There is one place where he (likely Ostrer) quotes Johann Rupert (of Richemont) as this:
“No, no, no, no. I didn’t lose a lot of money when I tried to sell the business. I lost the money when I bought the bloody thing. That’s when you park your money, it’s not when you try to find a bigger idiot than you to take it off your hands.”

...simply classic.

Here's another:
“[There are] three stages of [an] acquisition, which [are] euphoria and then disillusionment. And the next thing is looking for somebody to blame for buying the place.”

and a funny but profound one ...
“The grass is always greener on the other side of the fence. But you only find out when you climb over that the reason why it’s greener is because of all the cow dung hidden in the grass. And as soon as you start stepping in all this stuff then you wonder why you ever crossed the fence.”

Thanks! I actually just got my kindle 5 days ago so I should be able to buy it. Would have been nice if his previous book also had a digital version.


Tompety03

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JayGatsby - I read capital account a couple years ago and will post my detailed notes this week.  I should still have the copy and if so, would be glad to lend it to you.

Chris

winjitsu

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JayGatsby - I read capital account a couple years ago and will post my detailed notes this week.  I should still have the copy and if so, would be glad to lend it to you.

Chris

I'm not advocating for anything illegal, but I think the world would benefit if *someone* photocopied this and shared this with the world, a la Klarman's Margin of Safety :)

ukvalueinvestment

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JayGatsby - I read capital account a couple years ago and will post my detailed notes this week.  I should still have the copy and if so, would be glad to lend it to you.

Chris

I'm not advocating for anything illegal, but I think the world would benefit if *someone* photocopied this and shared this with the world, a la Klarman's Margin of Safety :)

Wow - a purported value investor that doesn't understand what theft is.
@ukvalueinv

petec

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JayGatsby - I read capital account a couple years ago and will post my detailed notes this week.  I should still have the copy and if so, would be glad to lend it to you.

Chris

I'm not advocating for anything illegal, but I think the world would benefit if *someone* photocopied this and shared this with the world, a la Klarman's Margin of Safety :)

Wow - a purported value investor that doesn't understand what theft is.

I've been thinking about this.   If a book is out of print then who are you stealing from if you read a photocopy?   Not the owners of the existing copies - they don't own the IP.   And arguably not the author, who is not losing sales and seems to show no interest in satisfying the demand for his work.   I'm approaching this from a moral standpoint, not a legal one.   

ukvalueinvestment

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Fair point.  I guess you are reducing the demand for the thing to be put back into print.
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