What We're Reading ~ 3/23/17

Mauboussin: The incredible shrinking universe of stocks [Credit Suisse]

7 traits for active investors to win in the long term [Jim O'Shaughnessy]

How to fight a price war [Harvard Business Review]

Stephen Jarislowsky's secret: buy stocks you never plan to sell [Canadian Business]

The fourth industrial revolution: a primer on artificial intelligence [Medium]

A pitch on Alphabet (GOOGL / GOOG) [Wexboy]

The autonomous vehicle revolution [Rational Walk]

Mohnish Pabrai thinks autonomous vehicles will take 20 years [Benzinga]

Baidu's (BIDU) CEO envisions a spinoff of robot cars arm [Bloomberg]

On Intel's (INTC) purchase of Mobileye (MBLY) [Stratechery]
Apple (AAPL) wants to bring augmented reality to the masses [Bloomberg]

Tech and entertainment in the era of mass customization [Andreessen Horowitz]

How being wrong can help us get it right [Tim Harford]

Advertisers are more interested in Instagram than Snapchat [Fortune]

Interview with Ctrip.com's (CTRP) CEO [Skift]

The billion dollar industry of professional video gaming [Bloomberg]

Soda loses its US crown; Americans now drink more bottled water [WSJ]

Dureka Carrasquillo Long Mobileye: Sohn London Conference

We're posting notes from the Sohn London investment conference 2016.  Next up is Dureka Carrasquillo, Senior Portfolio Manager at the Canadian Pension Investment Board for long/short equity in the EME region and pitched long Mobileye (MBLY).


Dureka Carrasquillo's Sohn London Conference Presentation

Long Mobileye (NYSE: MBLY) 

Mobileye is an Israeli software company based in Jerusalem. It is a pure play on autonomous cars. It develops software algorithms for damage limitation, analysis, and action.

-    It makes sensors – camera, radar and lidar (a surveying method that measures distance to a target by illuminating that target with a laser light)

-    It makes mapping software for telling autonomous cars where to go

-    Driving software to tell the car how to drive in different places


They have done deep research on autonomous cars. They visited over 150 factories. From invention to coming to market all major innovations in the car industry have taken about 30 years. Expect the first driverless car in 2020. Driverless cars could be a $600 billion market by 2030.

One of the biggest strengths of the company is that it owns the meta data. Ownership will be the best way to monetise the data in a market that will be dominated by large, powerful players. If Mobileye can gain 4% penetration of the global fleet of autonomous vehicles by 2020 then it is trading on 10x 2020 earnings.

Be sure to check out the rest of the Sohn London conference presentations here.