Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant [W. Chan Kim & Renee Mauborgne]]
Latest thoughts from Ray Dalio [LinkedIn]
Morgan Housel on what other industries teach us about investing [MicroCapClub]
Dominance of tech stocks: an evolve-or-die moment for world's great investors [Fortune]
A global tipping point: half the world is now middle class or higher [Brookings]
A look at Air Lease (AL) [Woodlock House]
Pitch on InterActive Corp (IAC) [LG's Musings]
AT&T wants to be big in entertainment but it has a $49 billion problem [WSJ]
Boeing's decision of the decade: does it build the 797? ]Bloomberg]
How Juul made vaping viral [Techcrunch]
Sports betting in the US: the rise of a billion dollar business [NYTimes]
Mukesh Ambani wants to be India's first internet tycoon [Economist]
How a former Canadian spy helps Wall Street mavens think better [NYTimes]
The best investments of 2018? Art, wine, and cars [WSJ]
A look back at the life of Jack Bogle [Vanguard]
The legacy of Herb Kelleher, co-founder of Southwest Airlines [Harvard Biz Review]
Wednesday, January 30, 2019
What We're Reading ~ 1/30/19
Thursday, July 28, 2016
Corsair Capital Q2 Letter: Quintiles Transnational / IMS Health Thesis
Jay Petschek and Steven Major's hedge fund Corsair Capital is out with its second quarter letter.
In it, they touch on the unique world of negative interest rates we now live in and how investors are reacting:
"The U.S. stock market is currently trading at approximately 16x-17x next year’s earnings. This equates to an earning’s yield of approximately 6% after-tax and 8% on a pre-tax basis - a big gap to 10-year treasury bonds yielding just 1.5%. As long as investors believe that stocks will generally continue to earn what they currently do (even with zero growth), equities will seem to be mathematically quite cheap compared to bonds. Of course, just because bonds are expensive doesn't mean investors have to invest in stocks. However, if not stocks, where will investors turn? It just seems the answer is TINA – there is no alternative – as all assets are historically expensive and stocks may prove to be the proverbial 'best house in a lousy neighborhood.'"
They also provide updates on numerous positions, including Diamond Resorts International (DRII), Olin Corp (OLN), Clearwater Paper (CLW), Voya Financial (VOYA), Countrywide plc (CWD), and IAC/InterActive (IAC).
Lastly, they feature a write-up on Quintiles Transnational (Q) which is set to merge with IMS Health (IMS).
Embedded below is Corsair's Q2 letter:
For more recent hedge fund letters, we've also posted:
- Third Point's Q2 letter
- Greenlight Capital's Q2 letter
