Monday, September 26, 2016

Giverny Capital Annual Letter 2015

A bit late this year, here is another letter from the good folks at Giverny. I post these letters because I operate on a near identical investment philosophy with the notable exceptions being:

1. my writing skills are far inferior;
2. my investment record is much shorter.

Giverny Capital Annual Letter 2015.

Notable quote from the letter:

"Significant and educational conclusions can be drawn from a 20-year period. Since 1996, our companies have increased their intrinsic value by 1102%, or close to a twelvefold increase. Meanwhile, the value of their stocks has increased 1141% (net of estimated currency effects). On an annualized basis, our 9 companies increased their intrinsic value by 13.2% and our stock portfolio returned 13.4% per year. The similarity between those two numbers is not a coincidence. (my emphasis)"

Yours One Legged

1 comment:

rick said...

Hi Peter, I read the linked letter with interest - and then I applied his formula of adding the % gain in EPS to the dividend to get a "owners earnings" percentage. What I discovered was a much larger gain in my portfolio - to the extent that I think I must have misunderstood him! Alternatevely its an outcome of the number of businesses that grew their earnings by huge amounts - several grew earnings by more than 100%, some by several hundred %. My average was 51% EPS growth over the portfolio and 4% in dividends - implying a growth in owner's earnings of 55%!

Did you have a look at his formula with your holdings?