Hello and happy holidays! I hope you have enjoyed a little rest and merriment this month. As the year winds down, I thought I would share a few final thoughts that have been percolating in my brain this season. If I were to organize a popularity contest amongst all the various investing styles, “quality investing” would be the runaway winner. It’s easy to understand why. Who doesn’t want to own companies with predictable and growing revenue, strong margins, high returns on capital, good management alignment, and expanding end markets? What’s more, the recent returns accruing to companies like these have been extraordinary, leaving more pedestrian companies in the dust. And of course, “quality investing” has the stamp of approval of Mr. Buffett himself, who constantly exhorts us to “buy wonderful companies at a fair price.”
Great article! Funny enough I’m spending my Christmas holiday in Grindelwald with the yellow WAB trains (part of the Jungfraubahnen rail network) passing my by window on time every 15 minutes 👌🏼. So that put a smile on my face reading about it in your post.
This was a great read on companies that I'd never hear of if it weren't for all your scavenging efforts, thank you for all the writings and sharing your wisdom, Dave. If you're interested in hearing about Turkish companies with high insider ownership and/or assets with sustainable moats, i can also send you an email about them. Greetings from Istanbul, all the best
Thanks for your interesting article, as usual! On $OTCM, while I share your concern about the number of US OTC stocks declining, there are a lot of foreign companies whose only US ticker, such as ADRs, only trades OTC. While the US market has been hot for years, that may change some day, and US investors may look longingly to foreign companies. Also, OTCM derives a fair bit of revenue from selling data and has expanded that a bit to non-OTC stocks, such as with the EDGAR acquisition. There’s clearly some uncertainty, and OTCM is not cheap, but I think that the outlook is better than a declining number of OTC companies might make it appear. My 2c. Thanks again for your terrific, interesting article!
Excellent read Dave, lots of choices in the world of quality! What's nice is if you choose the right ones, the price you pay matters less. Happy holidays! Trung
Great article! Funny enough I’m spending my Christmas holiday in Grindelwald with the yellow WAB trains (part of the Jungfraubahnen rail network) passing my by window on time every 15 minutes 👌🏼. So that put a smile on my face reading about it in your post.
This was a great read on companies that I'd never hear of if it weren't for all your scavenging efforts, thank you for all the writings and sharing your wisdom, Dave. If you're interested in hearing about Turkish companies with high insider ownership and/or assets with sustainable moats, i can also send you an email about them. Greetings from Istanbul, all the best
big fan of $otcm and have been considering buying more. rand looks like my kind of business too! thanks for sharing your thoughts, Dave!
Thanks for the ideas and merry Christmas with lots of quality cookies! :-)
I was just there! Great spot.
Strong quarter from Rand Worldwide. https://www.otcmarkets.com/otcapi/company/financial-report/390969/content. Revenue up 18% from last quarter and modestly year-over-year after adjusting for the one-off promotion. We should expect another special dividend announced any day.
Great - who are your favourite event-driven investors on substack?
Thanks for your interesting article, as usual! On $OTCM, while I share your concern about the number of US OTC stocks declining, there are a lot of foreign companies whose only US ticker, such as ADRs, only trades OTC. While the US market has been hot for years, that may change some day, and US investors may look longingly to foreign companies. Also, OTCM derives a fair bit of revenue from selling data and has expanded that a bit to non-OTC stocks, such as with the EDGAR acquisition. There’s clearly some uncertainty, and OTCM is not cheap, but I think that the outlook is better than a declining number of OTC companies might make it appear. My 2c. Thanks again for your terrific, interesting article!
Great article and thank you for sharing!
I concur that it feels like the general market has myopically focused on Quality and consistently been rewarded for ignoring Price.
I hope (and suspect) that you will be rewarded for focusing on the more difficult AND and not the Pavlovian OR.
Best!
Hi Dave, Happy Holidays - thanks for the great read.
Do you have any insights on how large the market is for RWWI to capture or how their competitors fair?
Excellent read Dave, lots of choices in the world of quality! What's nice is if you choose the right ones, the price you pay matters less. Happy holidays! Trung
More wonderful, not wonderfuler.