Financial markets are rife with stories about big companies, banks and investment funds going bust or irredeemably going bankrupt, mind-boggling trades and hedge fund wizards making money from wild ideas. ‘The Big Short’, the film adaptation of Michael Lewis’s book, has reverted public attention to the subprime crisis and the strong conviction investing strategy. By watching this movie, not only did we,
the Panda Agriculture & Water Fund team , rediscover the book, which we had read, it also prompted us to delve further into Dr. Burry’s investment philosophy. This document humbly seeks to be the most complete
compilation of Dr. Michael J. Burry thoughts.
.
s spending" ID: In 2004, Pixar will release its final film under the This distribution agreement is an onerous one that Pixar agreed to agreement with Disney. Geez, I couldn't afford that much Gap. I kid you not when I say on a Saturday we may visit 3 different
id: d4451659d2e1bb15e1f2072cc4d9bca3 - page: 12
13 Dorsey, P. The Little Book that Builds Wealth, Wiley, 2008. 12 Learning from Dr. Michael J. Burrys Investment Philosophy Panda Agriculture & Water Fund Team Gaps in the same day. "They all have different stuff" is what I hear, but it looks the same to me... Not sure if you know this feeling, but ever stand just outside the women's underwear area at Banana with like 5 other guys that's a camaraderie probably not unlike boot camp... seem any less exposed to fashion risk than anyone else in the industry. Now ANF and AEOS are rallying because experts are saying they had the right fashion mix for this fall. BUT I would still say that this just cements the fashion fate even more so. A while ago, we were talking about ANF being the next GAP. Well, let's hope not. But Dr. Burry not only talks about his position in Gap Inc (GPS), he also comments on other clothing companies such as Abercrombie & Fitch (ANF) or American Eagle Outfitters (AEO):
id: 399acfe020fc9ec1c2451b1d3999d61a - page: 12
BTW, I've completed a review of Buffett's holdings, and doesn't appear that he has any GAP. Not the last few years. SI 7-Aug-2000: Gap, we all know Buffett liked it enough to buy some. It definitely has been in a sweet spot, extended temporally by its addition of economic tiers. But what I wonder is why everyone says it's 4-tiered structure appeals to all ages. I definitely see it appealing to nearly all income levels. But not all ages. My wife is a Banana freak, and she will often visit Gap because they are usually in proximity. And of all the hundreds of times I've been in these stores (trying desperately to think of something interesting to avoid developing a frown), I definitely do not notice a geriatric population.
id: 5cce67408ff8531039417c563c6f788d - page: 13
SI 1-Sep-2000: All I see is a lot fashion risk. That say nothing to how cheap the stocks are. ANF was way too cheap. But I've read a lot recently how it and AEOS are riding the benefits of being in fashion this back-to-school season. While ANF was a value, how far it has come in such a short time has a lot to do with this. The stock was out of fashion when the clothes were out of fashion. ANF retooled and now the stock is in fashion as the clothes are in fashion. And in the case of Gap, the clothes are nearly as unappealing as those of Abercrombie. I don't think it is a crazy stretch to say Abercrombie could be the next Gap, because I think Gap is as much a beneficiary of a trend as Abercrombie and it is primarily the kids-to-young adults crowd. But I also would double or triple discount my DCFs if somehow it had become stuck in my mind that something was "the next" big thing. One of the oldest rules in the investor's handbook there is NEVER a next big thing.
id: c2d2e8e9286e2e477f4eb4ab3c1dcf5e - page: 13