Letter # 73

The holy grail of consistently superior returns, they say, is “a company that keeps growing revenues and free cash flows”. You find such a business and you keep investing… and the returns just keep flowing.

Well, it sounds nice and easy, but it is not true. In my article in ET today, I debunk that myth. We observe a large business with excellent standing and widespread ownership – the largest beverage company in the world and the second-largest holding of Berkshire.

A very interesting chart (cycles of exuberance and exasperation) that hopefully conveys my point. And surprisingly enough, I think Warren Buffett agrees (at least with his actions).

Read here: Investment: A good business and a good investment are two different things – The Economic Times (indiatimes.com)

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.