Must watch interview of Jorge Paulo Lemann, one of the owners of 3G Capital.
Jorge Paulo Lemann is Brazil’s richest man thanks to his stake in Anheuser-Busch InBev, the world’s largest brewer, which he owns through private equity firm 3G Capital together with fellow billionaires and longtime partners Carlos Sicupira and Marcel Herrmann Telles. The trio also has stakes in Restaurant Brands International, which owns Burger King and Tim Hortons and is listed both the New York and Toronto stock exchanges. In 2013 Lemann’s private equity firm bought H.J. Heinz & Company for $23 billion together with Warren Buffett’s Berkshire Hathaway. It was 3G Capital’s second acquisition of an American name brand. In 2010, 3G Capital bought Burger King in a leveraged buyout. Lemann is a former Brazilian tennis champion who played at Wimbledon. He has lived in Switzerland since 1999, after an attempted kidnapping of his children.
Walter Schloss was, together with Warren Buffett, Benjamin Graham’s students at Columbia University. Sometimes forgotten value investor with an amazing performance (see tables below). Today I discover a Walter Schloss called “Factors needed to make money in the stock markets” that he wrote in 1994, I believe these are his principles for make money. Must read for all who want to invest money.
We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.
Warren Buffett – 1992 Letter.
The purpose of this blog for me is to translate my thoughs about investing and business. Nowadays we live in a world with too noisy information. Another reason for this blog is to build up my own principles.
I will use my Twitter account to publish short thoughs about companies/market and this blog I will develop my own investment ideas.
I love to read but I need I place to write down my ideas about investing, finance, accounting, valuation and companies. The process will be difficult until I develop a good and reasonable mental model to invest.
The value of Principles. As in life, every investor need to have Principles. For example, in the book “Valuation”, written by three Mckinsey employees, they have a few principles about invest in any project or “Foundations of Value” as they called it.
“Companies create value by investing capital to generate future cash flows at rates of return that exceed their cost of capital.”
“A corollary of this principle is the conservation of value: any action that doesn’t increase cash flows doesn’t create value.”
In the next posts I will talk more about this great book called “Valuation”.