Five Points That Make Take-Two a Growth Powerhouse
Take-Two Interactive (Nasdaq: TTWO) has been in the Montaka portfolio since inception and continues to grow strongly. Below are five key points that highlight the Montaka team’s thinking on why TTWO is a quality stock with attractive growth prospects. 1. The model is changing and TTWO benefits TTWO is at the forefront of the structural […]
Some thoughts on Amazon Prime
Amazon, the world’s largest online retailer and provider of cloud infrastructure services, reported stellar Q2 results last week, beating consensus top line by $1 billion and EPS by 60 per cent, as revenue growth accelerated and operating leverage finally appeared in the business. This article will focus on Amazon’s retail business, which contributed to over […]
Why did Berkshire Hathaway buy Apple?
Yesterday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK/B) disclosed a $1 billion stake in Apple (NASDAQ: AAPL). As typically happens when Berkshire makes such a new disclosure, this sent the stock rallying by 4%. It is an interesting move given Buffett’s long-held stance against investing in information technology companies. So the question is, why did Berkshire […]
Traveling with a margin of safety
We are ultimately trying to buy a dollar for fifty cents. That’s essentially all value investing is. Readers of this blog will know that we also require that “dollar” to be a high-quality business with attractive future prospects. We think Travelers (NYSE: TRV), the US-based commercial insurer, is indeed one of these businesses. And we […]
Why We Like CVS
The Montaka team is constantly trying to find great businesses for inclusion in the Montaka Global Fund. We have a preference for businesses that maintain near-impenetrable positions relative to competitors, are in industries with secular growth tailwinds, demonstrate a track-record for producing above-average returns on invested capital, and have opportunities to continue to deploy large […]
What is our favourite recession-proof business?
Take-Two Interactive Software Inc. (Nasdaq: TTWO) is a developer and publisher of video game content for console systems such as the PS4, Xbox One and Nintendo’s Wii; handheld gaming systems such as Sony’s PSP; and personal computers, including smartphones and tablets. The Company is perhaps best recognized as the developer of the Grand Theft Auto […]
Are you being disrupted?
The concept of “disruption” is the subject of a great deal of discussion inside the four walls of Montaka. Whether it’s Uber disrupting taxis, or Airbnb disrupting hotels, disruption is forcing every incumbent business (and employee) to think deeply about who or what might “displace” it next. A recent book written by senior directors of […]
In retail, it pays to be discerning
Many who had predicted the demise of brick-and-mortar retail stores due to competition from online retailers such as Amazon have been left with mixed results. Indeed, online competition has permanently changed the retail landscape and forced brick-and-mortar retailers to react with their own online offerings. However, there are still pockets of the retail space that […]
What is “selective diversification”?
Readers of this blog will already be aware that we like to keep an eye on credit markets to help inform our views on equity markets, business qualities and prospects. Credit markets often provide leading indicators to impending changes in equity markets. The Wall Street Journal recently noted some deterioration in the credit quality of […]
Is Apple a one-hit wonder?
To outperform in the equity markets, you need to take a different view to the market – and you need to be right. So one should be very clear about where their view differs to the expectations that are implied by any given stock price. That is, always be clear about your source of “variant […]
