Author Topic: Companies -truly long term focused not managing to quarter results?  (Read 4834 times)

thepupil

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #10 on: February 11, 2018, 07:53:08 PM »
Quote
We manage the business for long-term wealth creation. We cannot directly influence share price, but surely our
share price over time is a report card on our performance. Since I have run Vornado from 1980, total shareholder
returns have been 16.5%(3) per annum. Dividends have represented 3.6 percentage points of Vornado’s annual
return.

Quote
Our external growth has never been programmed, formulaic or linear, i.e. we do not budget acquisition activity. Each
year, we mine our deal flow for opportunities and, as such, our acquisition volume is lumpy. Our acquisition activity
since 2013 has ebbed in response to a rising market. Acquisitions have been limited to strategic New York retail
properties and creative class, value-add office projects; if we were an industrial company, you might call them bolt-on
acquisitions. We have pushed away from acquisitions that are off-the-fairway, non-strategic or over-priced.

Quote
220 Central Park South continues its record setting success. In his annual letter, the greatest investor hawks candy,
furniture, jewelry and insurance. So, I guess it is okay for me to remind shareholders here that we are developing
220 Central Park South, the best apartment house in town. Give us a call, we have a few good ones left.

Debatable since the more recent track record is less impressive, but he mentions Buffett's annual letter, has a long term per share scorecard, has been in the business forever, and I happen to be reading it and I like to shamelessly pimp my thread.

« Last Edit: February 11, 2018, 08:10:02 PM by thepupil »


LC

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #11 on: February 11, 2018, 08:24:49 PM »
Nestle, AB ImBev, Google.

Time will tell, but I think you can put FB into the same fold.

Really? Everything I've seen makes me think they are doing the exact opposite. What makes you think they manage for the long term when their initial customers (college students) have completely abandoned them?
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BG2008

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #12 on: February 11, 2018, 08:42:58 PM »
FRP Holdings - Over 20% family ownership
LAACZ - 70% family ownership

There are very few followers of these two companies.  You basically own a bunch of real estate in the private market alongside the family at a big discount to liquidation value.  They behave like how a wealthy family would with regard to their real estate portfolio.  There aren't a ton of people following them.  So there is no management to quarterly results.   

Spekulatius

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #13 on: February 12, 2018, 04:05:51 AM »
Nestle, AB ImBev, Google.

Time will tell, but I think you can put FB into the same fold.

Really? Everything I've seen makes me think they are doing the exact opposite. What makes you think they manage for the long term when their initial customers (college students) have completely abandoned them?

I am not sure about Vollege students abandoning the,, but ai think they have taken a Lt view monetizing pretties like Whatsup and I also found their desire to reduce fake news and improve the user experience  even if it means less time spent encouraging. Again, time will tell...
To be a realist, one has to believe in miracles.

DooDiligence

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #14 on: February 12, 2018, 05:29:07 AM »
Quote
We manage the business for long-term wealth creation. We cannot directly influence share price, but surely our
share price over time is a report card on our performance. Since I have run Vornado from 1980, total shareholder
returns have been 16.5%(3) per annum. Dividends have represented 3.6 percentage points of Vornado’s annual
return.

Quote
Our external growth has never been programmed, formulaic or linear, i.e. we do not budget acquisition activity. Each
year, we mine our deal flow for opportunities and, as such, our acquisition volume is lumpy. Our acquisition activity
since 2013 has ebbed in response to a rising market. Acquisitions have been limited to strategic New York retail
properties and creative class, value-add office projects; if we were an industrial company, you might call them bolt-on
acquisitions. We have pushed away from acquisitions that are off-the-fairway, non-strategic or over-priced.

Quote
220 Central Park South continues its record setting success. In his annual letter, the greatest investor hawks candy,
furniture, jewelry and insurance. So, I guess it is okay for me to remind shareholders here that we are developing
220 Central Park South, the best apartment house in town. Give us a call, we have a few good ones left.

Debatable since the more recent track record is less impressive, but he mentions Buffett's annual letter, has a long term per share scorecard, has been in the business forever, and I happen to be reading it and I like to shamelessly pimp my thread.

Nice; I particularly like the final line re: 220 CP South.

Pimp away bro.
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BG2008

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #15 on: February 12, 2018, 05:47:51 AM »
I think a lot of the returns for Vornado is due to the unique circumstances of NYC getting safer, interest rate going from 8-10% to sub 3%, the kale eating crowd crowding into NYC, coupled with a land constraint location.  I know a lot of people who have levered returns in the 20s range who simply bought property in a fringe area in NYC and sat on it for 20-30 years.  They don't speak any English and had no formal education.  So, his track record has to be valued in that light. 

Pupil - send me a PM.  Let's chat offline.  There's no agenda on my part to keep crapping on your ideas.  I've seen a crazy cycles in 08 and 09 when SLG traded from over $100 to under $10.  I have a tendency to nitpick.  It's probably because I am a grumpy old man who has failed to keep up with time.   

Rasputin

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #16 on: February 12, 2018, 06:15:19 AM »
BAC under Brian Moynihan.

Biggest short term profit hit decision they took was quitting correspondent mortgage lending.  Cost them roughly $2 Billion per year in mortgage banking income. 

longinvestor

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #17 on: February 12, 2018, 07:36:42 AM »
A good place to look for such companies are those Tom Russo invests in. Gardner Russo & Gardner. For those who may not be familiar, Tom is widely present on Youtube talking about this very topic, calling those long term companies with the "capacity to suffer". Nestle is one Tom has often spoken of. 

thepupil

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #18 on: February 12, 2018, 07:38:12 AM »
There's no agenda on my part to keep crapping on your ideas.  I've seen a crazy cycles in 08 and 09 when SLG traded from over $100 to under $10.  I have a tendency to nitpick.  It's probably because I am a grumpy old man who has failed to keep up with time.

Sent you a PM, but I encourage you to crap on them. Different perspectives should  be provided.
« Last Edit: February 12, 2018, 08:09:41 AM by thepupil »

TorontoRaptorsFan

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Re: Companies -truly long term focused not managing to quarter results?
« Reply #19 on: February 12, 2018, 07:41:08 AM »
Apple

Large R&D budget that is focused on incremental improvements to product lines. Heavy focus on aesthetics and ease of use. When they enter a market they quickly become the market leader.

Large reserves of cash that is smartly used on add-ons to enhance existing product lines. 
AAPL, BAC, BAM, CMG