Becton, Dickinson And Company – From Dividend Aristocrat To Dividend KING

Recently, Becton, Dickinson And Company increased its dividend by almost 5% to 87 cents a share per quarter. This was the 50th annual increase in a row and the company is now officially a Dividend King. How come this company can maintain profitability for so long? After a few years of deleveraging after the acquisition…

Best Stocks Without Dividend

Erroneously many believe that dividends are the key to long-term investing. Why is that? Because over the long-term dividend reinvestments are a major part of the returns. However, that doesn’t mean that non-dividend stocks are bad. Quite the opposite, would we say. This article lists the best stocks without dividends. We argue why you shouldn’t…

15 Mini/Baby Berkshires (Berkshire Clones With Long Runways)

Berkshire Hathaway is big, mature, and its chairman is old (92 years). This leads many investors to look for companies that are similar to Berkshire but might offer a much longer runway. This article was initially written in 2019. Invest like Warren Buffett: This article lists 15 high-quality business models which we label Mini/Baby Berkshires…

Constellation Software’s Agnostic Capital Allocations

Constellation Software’s CEO Mark Leonard is a bit of an eccentric character and CEO. Under his reign, the company has compounded at about 40% for almost two decades! We have been avid readers of his annual shareholder letter for years, but unfortunately, he has chosen only to write when he has something “important to write”….

Can Boston Omaha Become The Next Berkshire Hathaway? (Baby/Mini Berkshire Analysis)

Boston Omaha (ticker code BOMN) has many similarities to Berkshire Hathaway and is often labeled a Baby/Mini-Berkshire. Many have tried to become the next Berkshire – most have failed – but Boston Omaha looks promising. However, we look at the company as a call option and have thus initiated only a small position. What makes…

Why Investment Companies Are A Great Investment

Introduction and summary: This article seeks to explain what an investment company is, and what the main differences are compared to mutual funds. If you do your due diligence, we believe investment companies are a better choice than most mutual funds because of these reasons: Investment companies are better than mutual funds because they take…

Why Invest In The Berkshires – The Original And The Clones/Minis/Babies

Introduction and summary: Most investors know very well the story of Berkshire Hathaway and Warren Buffett. However, the many advantages of the Berkshire business model have some exciting features that we believe are less understood and very underrated. The article aims to look more into these features and why they matter. In short, by investing…

Costco – The Moat Is The Unique Corporate Culture

Costco (COST) is a US retailer and for good reasons one of the most admired companies in the world. Costco’s management style, with a focus on integrity and treating both the employees and customers right, is the cornerstone of their mission statement. Such a “simple” model has rewarded the shareholders massively. Charlie Munger, who sits…

WR Berkley – The Rare Combination Of Both Able Operators And Allocators

We buy back stock when we think it’s attractively priced relative to our assessment of the intrinsic value of the enterprise. – Robert Berkley on the 1Q2020 conference call. The business: WR Berkley is included in our “owner-operated”/managed portfolio. WR Berkley (NYSE: WRB) is an insurance and reinsurance company. Their biggest line of insurance is…

Thoughts/Analysis On Markel (The “Mini/Baby” – Berkshire)

Berkshire Hathaway needs no introduction, but what many investors might not know is the existence of several “Mini-Berkshires” or “Baby-Berkshires”, companies that are much smaller but in many ways similar both in business model and mindset of the management. One of these companies is Markel Corporation which is traded on the NYSE and has the…

Alleghany Corporation: A Boring “Mini/Baby-Berkshire” (Analysis)

Berkshire Hathaway needs no introduction, but what many investors might not know is the existence of several “Mini-Berkshires” or “Baby-Berkshires”, companies that are much smaller but in many ways similar both in business model and mindset of the management. One of these companies is Alleghany Corporation which is traded on the NYSE and has the…

Diageo: A Premium Sin And Dividend Stock (Analysis And Summary)

Diageo is a sin stock and those stocks have performed the best over the last century. This analysis argues why this is likely to continue. Background and summary of Diageo: Diageo produces alcohol – lots of it – hence a “sin-stock”. Tobacco and alcohol stocks have produced spectacular gains over the last century, and Diageo…

Abbott Laboratories: Tailwind From Healthcare Spending And Emerging Markets

  I have been a shareholder in Abbott Laboratories (ABT) since the acquisition of St. Jude in 2016. I believe this is a very good stock to own for the long run, not because of the dividend, but because of the potential long-term returns. Furthermore, Abbott’s products are needed both in good and bad times….

Johnson & Johnson: Boring, Slow Growing And Stable (Recession Proof)

Governments have currently implemented draconian measures to stop the coronavirus, leading to a wide global sell-off on the stock exchanges. Market drops are often a good thing if you have cash or if the companies have the liquidity to buy back shares and wither the storm. The FED is printing almost insane amounts of money…

Why It Makes More Sense For Exxon To Buy Back Shares Instead Of Paying A Dividend

Last week I wrote an article about how you can create your own “dividend” by selling shares. Many investors have an irrational dividend bias: Benjamin Graham wrote in the Intelligent Investor that a rising dividend has the potential of attracting “ignorant coupon clippers” – not business owners. I believe too many shareholders in ExxonMobil (XOM)…

Credit Acceptance Corp: Excellent Operators And Allocators – Great Compounder (Analysis And Summary)

Introduction and summary: Credit Acceptance Corporation (ticker code: CACC) is an owner-operated auto lender in the subprime loan segment. The business model is reasonably easy to understand and pretty straightforward: to lend and service auto loans to subprime borrowers via auto dealers. However, the loan assignments are structured so that all parties (lender, dealer and…

Constellation Software – Takeaways From Mark Leonard’s Shareholder Letters

This article contains a brief description of Constellation Software, some thoughts on its competitive advantages, and excerpts from Mark Leonard’s excellent shareholder letters. The excerpts are pretty long, about 5 000 words, and I recommend going to the source to read all letters. This article has only small samples of Leonard’s wisdom. The article is…