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Matt Lindsay's avatar

I like the idea of this series! Who else are you planning on profiling?

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Luis E. Pazmino's avatar

Hi Matt! Thanks for the comment! So far, I have articles on Chris Hohn (TCI) and Rob Vinall (RV Capital) in the pipeline. I also follow a couple of lesser-known Spanish fund managers that I'm considering as well.

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Margin Of Safety's avatar

Excellent write up. I remember when Dev owned $MNST. He owned it for a long time. I wondering when he sold. I guess I’ll have to do some research. One of the reasons he liked it other than the high returns on a lot of metrics was that $KO owned a large stake in $MNST. They are still the largest shareholder according to the proxy filing. Anyway, he viewed that as another catalyst.

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Luis E. Pazmino's avatar

Thank you for the comment! Indeed, he owned it and sold in 2019 if I’m not mistaken. From what I know, he sold because he saw higher levels of competition in the energy drink space, and while he still saw it as an excellent business he thought there were better opportunities elsewhere. He’a quite stringent in regards to risk-reward.

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Margin Of Safety's avatar

I am sure you are correct. Energy drinks are everywhere these days. I am amazed at how many there are when I shop at a grocery store. I guess we’re all low-energy nowadays. 😀 Personally, I’d rather stick to coffee for a kick in the arse.

Anyway, back to Dev. All of his holdings have little competition. The closest might be Amazon, which has wiped out almost every bookstore, Mom and Pop and mall department store. They are the go to for many transactions. Not to mention Prime is similar to the membership fee for Costco. If retail slows they still have other businesses such as the cloud, where the competition is small. I just have never been able to wrap myself around the multiple the stock trades at and buy it. Maybe because I don’t consume energy drinks.

Many thanks and keep up the good work.

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DIY Investor's avatar

Just to add to you Amazon with high PE, I remember someone doing a thought experiment by assuming less investment and how this might affect EPS. It might help you to overcome the high PE.

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DIY Investor's avatar

Thanks for the post Luis! Looking forward to your future posts.

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