ScottBlackDelphiManagement

BarronsTheArtofSuccessfulInvestingConferenceOctober21,2013
Seesthemarketasfairlyvalued
Smallcapsarenotcheap
o Difficulttofindcheapcompaniesatallrightnow
ORCLischeapwithaP/Eratioof10
o Peopleworryaboutthecloudanditseffectonthebusinessbuttheyarecurrentlythe
onlyfirmwithacompletesouptonutsoffering
RogersCommunicationsInc.(RCI)
o 2/3rdscellular,somecable
o Tradingat7.1XEV/EBITDA
o [Blackveryfocusedoncashconversionstats]
o Stockhasrunsome
EverestReGroupInc.(RE)
o Greatinsurancecompany
o OutstandingROE
o Stockhasrunsome
ManitexInternational(MNTX)
o Makesboomcranes
o [Was?]Sellingata10multiple
o Growing20%ayear
Berkshireneedstobeevaluatedasanoperatingbusiness
o ItsnolongerdependentuponWarrensstockpickingacumen
ExpectsCiscotogrowtheirbottomlineat910%
MSFTUnloadedhispositionwhenstockspikedonBallmersretirement
IntelCantseemtopenetratecellphonemarket
AAPLCompanyisdifferentwithoutSteveJobs
o JobswastheEdisonofourday
o Companyneverhadtospendahigh%onR+DbecauseJobswasagenius
Nowthatcostisgoingtostartrising
BelievesU.S.Bancorpisthebestrunbank
IBMdoesnothavetoplinegrowthanymore
Contemporaryartmarketisextremelyoverheated
o [Signofabubble?]
Wouldntbuythemarket
o Operatingmarginsareatrecordhighssomultiplesareunderstated
Has88.5%ofhisportfolioincash
Techsectorstillcheap
EurohasbeenaboonfortheGermaneconomy[!]becauseitallowedthemtoexport
BaxterInternational(BAX)tradingat12P/Ewithgoodtoplinegrowth
LibertyMediaavoidingsolelybaseduponvaluation