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Third Quarter 2019 Letter: Long Pubs, Short Tourists

Chris penned our third quarter letter on his first year anniversary with the GreenWood team.

Speed Read:

  • Exor exemplifies why “dead money,” is a truism that is never true when skin in the game is involved, as Builders continuously compound value regardless if the market is paying attention or not. Ideally, like our coinvestment, the fundamental value compounds faster than the stock;
  • A personal experience in Jerusalem is a perfect anecdote about how stakeholder win-win outcomes are necessary for any progress to be made, particularly in a 500-year old business;
  • Two business models encapsulated by the “pub approach,” or the “tourist approach,” underline why reputation and skin in the game correlate to the long-view. We are long pubs and short tourists;
  • Boeing is a tourist that maximized short term profits and management bonuses over safety. It continues to choose profits, meaning passengers and shareholders are in for a turbulent ride in 2020;
  • The opposite approach in aerospace has been taken at an Italian aviation company we recently repurchased in a very timely fashion.

Click here to read the Third Quarter 2019 Letter.

Also, if you are a coinvestment investor, Steven has posted a refreshed model and a 19-page note in the data room summarizing the very considerable progress achieved and bright roadmap ahead. Click here to access our coinvestment research page.


This article has been distributed for informational purposes only. Neither the information nor any opinions expressed constitute a recommendation to buy or sell the securities or assets mentioned, or to invest in any investment product or strategy related to such securities or assets. It is not intended to provide personal investment advice, and it does not take into account the specific investment objectives, financial situation or particular needs of any person or entity that may receive this article. Persons reading this article should seek professional financial advice regarding the appropriateness of investing in any securities or assets discussed in this article. The author’s opinions are subject to change without notice. Forecasts, estimates, and certain information contained herein are based upon proprietary research, and the information used in such process was obtained from publicly available sources. Information contained herein has been obtained from sources believed to be reliable, but such reliability is not guaranteed. Investment accounts managed by GreenWood Investors LLC and its affiliates may have a position in the securities or assets discussed in this article. GreenWood Investors LLC may re-evaluate its holdings in such positions and sell or cover certain positions without notice. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of GreenWood Investors LLC.

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