Path dependency is a very important concept. It’s something we constantly think about, and thus, we’ll take a small detour to explore it. In addition to our traditional quality analysis, which falls into three buckets (business, balance sheet, and management), we also look at companies through the slightly different lens of fragility. We owe our […]
Today I am going to do something we rarely do. I will share a large excerpt from IMA’s last quarterly letter to clients. Our quarterly letters are somewhat unconventional in that they provide an in-depth look at our investment process and explain in great detail every major decision that went into each client’s portfolio during the quarter. We are somewhat embarrassed […]
As a shareholder, you do well to place more emphasis on risk than on reward. Corporate management usually does the opposite, and this is why most large acquisitions fail. In fact, I assume from the start that an acquisition will fail — or at least will turn out not nearly as profitable as the picture […]
June 22, 2016 – Excerpt from Q2 2016 letter to IMA’s clients To talk about our purchase of Allergan we have to talk about sale of Teva – as you’ll see, they are very interrelated. Our buy thesis on Teva was simple: it’s a dominant generic pharmaceutical company, and a large portion of its profitability […]
