3-Bullet Sunday (Alibaba, Arlington Value, Pabrai's Spawner Framework)
Dear readers,
The Alibaba research report part II (paywall) is now available!
My report discusses Ant Financial business model, why they got into trouble with Chinese authorities, how government regulations affect them, and what I think of Alibaba as an investment today.
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I. Arlington Value Letters from 2008 to 2016
Arlington Value was started by Allan Mecham after dropping out of college.
Between 2007 and 2017, the fund delivered a 30.7% CAGR.
After reading this insightful thread, I finally got around to reading his letters this week.
His letters provide great insights into his key investing frameworks.
II. Mohnish Pabrai’s Spawners Framework
One of the best ways to spot multi-baggers is to look for what Pabrai calls Spawners.
Spawners are companies that excel at developing new revenue streams.
The best example is Amazon, which started out as an online bookstore before becoming an everything store.
Discover how to spot such companies at an early stage in this article!
III. Book I’m Reading This Week
Sutherland is the legendary Vice Chairman of Ogilvy.
In his job, he was able to establish a behavioural science practice within the agency with the goal of uncovering the business and social opportunities that arise when you apply creative minds to the latest thinking in psychology and behavioural science.
He explores human behavior in this book and how organizations can use clever tricks to encourage consumers to behave in the way they want.
That’s it from me!
If you enjoyed today’s newsletter, do share it with your friends :)
-Thomas Chua
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