PRODUCTIVITY POVERTY

PRODUCTIVITY POVERTY

We have been described as “rock stars” by HSBC, and told by our politicians the record high migration rates and house prices in New Zealand are just problems of success. This may be true but the table below highlights that we as a nation have been in denial about the most important factor that contributes toward long-term economic success - our productivity (or lack of it) - for most of the last two decades.

LESSONS FROM LONDON

LESSONS FROM LONDON

Brexit’ has been the topic “du jour” for several weeks now with a number of interesting points being raised both for and against Britain’s awaiting departure from the EU. A recent Reuters article by columnist Mr. Edward Chancellor challenges populist views on the economic turmoil Britain is currently facing suggesting ‘Brexit’ could instead provide a platform for long-term sustainable economic growth.

ROB CAMPBELL : SPEECH TO ELEVATION CAPITAL FUNCTION AT THE HOLY TRINITY CLOISTERS, PARNELL, AUCKLAND, NEW ZEALAND IS IT IMPORTANT TO INVESTORS?

ROB CAMPBELL : SPEECH TO ELEVATION CAPITAL FUNCTION AT THE HOLY TRINITY CLOISTERS, PARNELL, AUCKLAND, NEW ZEALAND IS IT IMPORTANT TO INVESTORS?

Thank you for the invitation to speak this evening. Chris Swasbrook and his colleagues at Elevation are an interesting option for investors, giving investors the benefits of efficient access to some of the best global value funds in the one instance and in the second to Chris’ unique view of local and global equities. 

HIGHLIGHTS FROM THE COLUMBIA BUSINESS SCHOOL DINNER AND BERKSHIRE HATHAWAY ANNUAL MEETING IN OMAHA, NEBRASKA ON 4 & 5 MAY 2012

HIGHLIGHTS FROM THE COLUMBIA BUSINESS SCHOOL DINNER AND BERKSHIRE HATHAWAY ANNUAL MEETING IN OMAHA, NEBRASKA ON 4 & 5 MAY 2012

Columbia Business School Dinner hosted by Bruce Greenwald with Thomas Russo, Mario Gabelli and David Winters talking. For background, Professor Bruce C. N. Greenwald holds the Robert Heilbrunn Professorship of Finance and Asset Management at Columbia Business School and is the academic Director of the Heilbrunn Center for Graham & Dodd Investing. Described by the New York Times as “a guru to Wall Street’s gurus,” Greenwald is an authority on value investing with additional expertise in productivity and the economics of information.

WHAT ARE “VALUE TRAPS”?

WHAT ARE “VALUE TRAPS”?

 “Is Microsoft stock a value trap?”

“PaperlinX is trading at 0.1x P/B. It must be cheap!”

“Value trap” is a term used in the investment management industry. It describes stocks that appear cheap, but the gap between price and potential value does not close, or, worse, widens. With this Elevation Capital Insights paper we have sought to explain the concept of value traps, and how Elevation Capital tries to avoid being “trapped”.

SEQUOIA FUND ANNUAL MEETING & SHORT BIOGRAPHY OF WILLIAM J. RUANE

 SEQUOIA FUND ANNUAL MEETING & SHORT BIOGRAPHY OF WILLIAM J. RUANE

 We recently attended the Sequoia Fund Annual Meeting in New York (the Elevation Capital Global Value Fund of Funds is an investor in Sequoia) and we thought it might be useful to share with our investors some insights from some of the best capital allocators in the world. The meeting was attended by a group of ~250 people where the portfolio managers and analysts proceeded to answer any / all questions that investors asked for a period of ~2.5 hours. The opening remarks by Bob Goldfarb are provided below:

“We are pleased with our results since we met here a year ago. As long-term investors, we’re particularly proud of our 41-year record. Over the past decade, our firm has undergone some significant changes. We own less Berkshire than we did for many years; we own more stocks than in the past; and the stocks we own represent a broader group of industries and geographies than in the past.