II Investor Day of Magallanes Value Investors
Magallanes Value Investors is one of the leading investment managers in Spain. Captained by Iván Martín, they have managed to consistently beat the market since its inception. As I always insist on the importance of learning from the best, I have not missed the opportunity to analyze the presentation of the II Investor Day organized by this manager.
In this article you have the video of the conferences and subsequent questions of the II Magallanes Value Investors Investor Day together with a brief compilation of the highlights of the event.
Tabla de contenido
- 1 Video of the II Investor Day of Magallanes Value Investors
- 2 Video with the rest of the questions to the Magellan team
- 3 Highlighted phrases of the II Investor Day
- 3.1 Iván Martín on Inditex
- 3.2 Iván Martín on the generation of ideas
- 3.3 Iván Martín about when to buy
- 3.4 Iván Martín on investing in moments of pessimism
- 3.5 Iván Martín on investing in the long term
- 3.6 Iván Martín on the companies they like to invest in
- 3.7 Iván Martín on his biggest mistakes
- 3.8 Iván Martín on Natural Gas
- 3.9 Otto Kdolsky on Savencia
- 3.10 Diogo Pimentel on Sonae
- 3.11 Diogo Pimentel on CTT Correios de Portugal
- 3.12 Diogo Pimentel on Special Ingots
- 3.13 Diogo Pimentel on Naturhouse
- 3.14 Iván Martín on investing in Spanish banking
- 3.15 Iván Martín on investing in gold
- 3.16 Iván Martín on Serco
- 3.17 Iván Martín on investing in indebted companies
- 3.18 Iván Martín on the risk of technological disruption
- 3.19 Iván Martín on the maintenance capex
Video of the II Investor Day of Magallanes Value Investors
Video with the rest of the questions to the Magellan team
Highlighted phrases of the II Investor Day
Iván Martín on Inditex
"If the price of the stock was 50% below we would surely buy it."
Iván Martín on the generation of ideas
In the following graph we can see the main sources of idea generation in Magallanes Value Investors.
Iván Martín about when to buy
"When the market is strong there are not many opportunities to buy."
"When the markets fall and fall hard we are relatively happy because we have the opportunity to buy."
Iván Martín on investing in moments of pessimism
"The differential point is the attitude towards investment, keeping cool and serene."
Iván Martín on investing in the long term
"Things don't happen overnight, in life in general."
Iván Martín on the companies they like to invest in
The companies in which the Magallanes Value Investors team like to invest are the following:
- Little followed and ignored by the market
- Out of style, different approach, sometimes contrary
- Controlled by families, management teams or founding partners
- Good financial situation, little debt or net cash
- Preference for small businesses vs. large
- Holding structures / complex organizations
- Companies in favorable competitive environments
Iván Martín on his biggest mistakes
"My biggest professional mistake was the investment in Pescanova, which was a fraud, but it is a mistake."
"I learned to provide information to audit reports."
"When a company changes from a great auditor to a lesser known auditor and the audits come out clean, you may have to be suspicious."
Iván Martín on Natural Gas
“It fulfills many of the points we are looking for. It is not in the interest of the investor in general or of analysts. "
"It is a conglomerate of things that now, with the entry of the new shareholder, is adding value."
Otto Kdolsky on Savencia
"It has practically all the characteristics we look for when making an investment."
"The company was and is very cheap."
"A month ago there were really very solid results, margin expansion, debt reduction, which again gives us a potential to almost double."
Diogo Pimentel on Sonae
"We believe that the sum of the individual businesses is worth much more than the price at which the company is trading."
Diogo Pimentel on CTT Correios de Portugal
"We continue to believe that the strategy that the company is following with the investment in the postal bank makes sense."
Diogo Pimentel on Special Ingots
“The potential for appreciation is more moderate. For this reason, it weighs 1% in our Iberian portfolio. "
Diogo Pimentel on Naturhouse
"We have sold our position."
"We have analyzed the results they have presented and their business model and we believe that it may be under threat, especially in France, where the competition is reacting very strongly."
"With this change in the business model, we have decided to sell the position we had in the company with a slight capital gain on the position."
Iván Martín on investing in Spanish banking
"Spanish banks have looked at them in the past and recently and they still do not offer us sufficient safety margins to buy."
"Optically they seem cheap, but the risk they have intrinsic in their valuations does not compensate us."
Iván Martín on investing in gold
"We do not consider gold to be an investment, because we understand investments as investing in productive assets, which generate profit, which distribute dividends or which produce something, which are profitable."
“We do see it, on the other hand, as a possibility to replace cash, especially in negative environments. That would be the prism under which we would view a gold exposure. "
Iván Martín on Serco
"It is in our European portfolio."
"With the falls we take the opportunity to buy a little more."
Iván Martín on investing in indebted companies
"An overly indebted company is a red line for us."
"For us, a relatively high debt is 3 times the EBITDA."
Iván Martín on the risk of technological disruption
"Everything that we are not able to glimpse what may happen in 5 years, due to the risks of threats of technological disruption, because we prefer to be outside."
Iván Martín on the maintenance capex
"We approximate the maintenance capex with depreciation, it is the best measure to approximate it."
"A company that does not grow has to spend yes or yes a level of capex that covers what they are depreciating simply by existing."