It is not the first, nor the second, nor the third, nor will it be the last time I tell you that one of the best methods to be a good investor is to learn from the best. Today is the turn to analyze the Bestinver Conference 2016 in Barcelona. In this article you have the video of the conference, my impressions and my compilation of outstanding phrases.
By the way, do not forget that this Monday, March 7, I organize together with risk in value investing, that is, the risk for an investor, which is nothing other than:
"The probability of incurring a permanent loss of capital"
To finish, I want to reaffirm myself with my first impressions when listening to the new Bestinver team for the first time, captained today by Beltrán de la Lastra after a long and successful stage with Francisco García Paramés and his team at the helm. At Bestinver, although the managers have changed, the philosophy has remained intact.
Furthermore, Bestinver must be congratulated once again for continuing to deepen its improved transparency and closeness policy in this new stage by opening a new office in Barcelona. Without a doubt, in this regard, Bestinver is also a benchmark in Spain today.
Highlights from the Bestinver Investor Conference in Barcelona 2016
As always, I leave you my selection of the most interesting, illustrative or most interesting phrases of the conference.
Ricardo Cañete on the 3 reasons why companies leave his portfolio
“Basically for 3 reasons. The first, because it has reached our target price and then it no longer has enough potential for appreciation. The second is a possible change in fundamentals and, therefore, even if the price has not changed, the fundamental value has changed and therefore there is not enough safety margin and then it leaves the portfolio. [The third] Because there are other better investment opportunities than those that make up the portfolio. "
On analyzing company culture (referring to Imperial Tobacco)
"Many times knowing the culture of the company is as important as knowing the financial part."
Ricardo Cañete on Informa
"The company is still just as fantastic, what happens is that we like it less because of the appreciation it has had.
Ricardo Cañete on Euskaltel
“It is not a company that stands out for how cheap it is, but it does stand out for the quality that the company has for us. The competitive advantages that it has are not easy to find in the market. "
“We are also struck by the management team. It seems to us that it is a very solid management team and we see that not when you sit down to talk with the CFO or the CEO, but by analyzing decision-making, which in the end is how we all really portray ourselves, with the actions we take . "
Ricardo Cañete on Philips
“In general it is a value that the market hates. He hates it because he says that it is an industrial holding company that does not have synergies between the different branches of activity and, therefore, they have never created value, they have always destroyed value over time. "
"It can stay [after getting rid of the rest of the divisions] with the jewel in the crown, which is the part of medical products, with higher margins and higher growth."
Beltran de la Lastra on Philips
"I have been waiting for more than 4 years to buy it, so if you wait patiently, the moments come, and we believe that the case of Philips has arrived."
Beltran de la Lastra on the raw materials sector
“The demand for raw materials that has existed in the world during the last 15 years has been of a very high level, clearly caused by consumption in China, by the transition and investment in infrastructure that they have made during the last 15 years. Hardly comparable in history unless we go a little more or less than the times of the pyramids. "
"Collectively, mining companies today have more than 10 times more debt than they did in 2.001."
Beltran de la Lastra on Galp
"Galp's production costs are clearly lower than those of the vast majority of competitors."
Beltran de la Lastra on CAF
"It has a market capitalization of 800 million and its order book over 4.000 million."
“We are buying it at 8 times profit if we do not consider the real value of the 2 concessions they have in Latin America. Without making a correction and assessing those conditions properly, we are paying less than 7 times profit. "
Jaime Vázquez on investing in small companies (in relation to Royal Unibrew)
“An important quality is that it is a small company, that it is something that a priori attracts us. It capitalized at about 2.000 million euros. Small companies are usually worse analyzed by the market and, therefore, there are usually better opportunities "
Ricardo Cañete on Gathered Techniques
"We think that, in the medium term and with oil at these levels, the growth of new contracts will be difficult."
“At these levels we think it is a company with limited potential. We would like to have a little more potential. "
Jaime Vázquez on Lenta
“Yes we have had to lower estimates, because the crisis has been more acute than perhaps we expected, but the important thing is that Lenta is doing better than its competitors. For me that is the most important thing. "
Ricardo Cañete on Inditex
"I wish I could buy it at reasonable prices, but until today we haven't had a chance."
Ricardo Cañete on CAF and Talgo
"We like CAF more than Talgo because of the diversification of its clients."
Beltran de la Lastra about Rolls-Royce
"It is a company that is in a frankly difficult transition process."
"[The new CEO] is doing all he makes sense to put the company in the right direction."
"In the long term I think it will be a great investment."
Ricardo Cañete on Barón de Ley
"From a fundamental point of view the company continues to perform fantastically."
"It seems to us a company of those of the highest quality at a reasonable price, with a lot of cash in balance."
Jaime Vázquez on Pandora
"We are aware that the company has a risk, which is the risk that we call" fashionable ", that it may go out of style"
"How do we manage that risk? Two ways:
Doing what we call channel checks, which is a company that operates mainly with the franchise model, we call franchisees who operate 15 or 20 stores in the United States, in the United Kingdom or in different countries and we ask them how the sales are going and with that we make sure that there will be no scares in the results.
Not having more than 1% of the company in the portfolio and, each time the share appreciates, we take profits and return to 1% of the position. "
Ricardo Cañete on investing in the banking sector
"Everything has a price. The shares have fallen quite significantly and we are a little closer than we were before, but the moment has not yet come. "