Value Ideas Blog
Reading Recommendations and Announcement
Once again, we share our most useful lecture with you, this week you might want to take some more time than usual:   An outstanding student investment newsletter from the Columbia Business School: http://www8.gsb.columbia.edu/valueinvesting/sites/valueinvesting/files/Graham%20%26%20Doddsville%20-%20Issue%2020%20-%20Winter%202014.pdf   An exponentially growing company in a very competitive field: http://moatology.com/2014/02/20/optimizerx-a-little-company-in-the-sweet-spot-of-a-massive-industry/   And, as we like to do, we give you two great quotes:  
Really good investment opportunities aren’t going to come along too often and won’t last too long, so you’ve got to be ready to act. Have a prepared mind. ― Charlie Munger You will become way less concerned with what other people think of you when you realize how seldom they do ― David Foster Wallace, Infinite Jest
  Finally, we do not want to miss out on making an announcement for those of you who are around: We are going to have a presentation on value investing, margins and moats at the European Business School in Oestrich coming up on Monday. Feel free to join if you have the chance! https://www.facebook.com/events/530086467089189/?ref_dashboard_filter=upcoming
Today I would like to present you a long post and the work of the team from the European Business School for the German CFA Research Challenge Final. The team members are Vincenzo La Banca, Yun Du, Attila Menyhàrt, Jan Werst and me.   We were one of four teams which reach it to the Final round, unfortunately we did not win (perhaps this was due to our low price target of around 63€ per Kabel Deutschland share (ca. 40% lower), but we still think that this price is much more reasonable than the takeover price of 87€ per share and it is not the first time taht vodafone paid to much for a german company(Mannesmann AG)). At the Moment the Valuation of Kabel Deutschland is at a staggering 51x Equity Value/FreeCashflow. Foodballfield   But let us now go into the details: read more

So, is there “a puff left” now?

In order to answer this question we need to take closer look into the structure of 3U Holding (3U). As the name suggests, 3U Holding holds a series of stakes in other companies. Benefits of this approach include synergies in terms of purchasing, facilities, legal, accounting and business administration, plus the possibility to add up profits and losses, and so save taxes. However, as blog readers have already commented rightly, the overhead costs for management and shared central functions are significant, i.e. roughly 3.5 million per year (0.10  Euro per share per year). read more