Ebay Stock Analysis - Why does Seth Klarman Love Ebay?

Interactive Brokers: My Main Brokerage Platform
CLICK HERE - https://www.interactivebrokers.com/mkt/?src=abrowny4&url=%2Fen%2Findex.php%3Ff%3D1338

Andrew Brown’s Intrinsic Value Calculator
https://mailchi.mp/02b28ffff5ef/intrinsicvaluecalc

MUST READS FOR VALUE INVESTORS - I don’t want to make a course because these books are better than any course. I prefer to listen to them through audible. Here are the links to the books and audiobooks.

Great For Beginners

Invested - Danielle Town and Phil Town (Great introduction to value investing)
https://amzn.to/312SBWv

Rich Dad, Poor Dad - Robert Kiyosaki (Mindset and Motivation)
https://amzn.to/3vMSIUo

The Barefoot Investor - Scott Pape (Day to Day Financial Planning)
https://amzn.to/2QioPLl

One Up On Wall Street - Peter Lynch (Full of Gold)
https://amzn.to/3lLGgji

Great For Getting Deeper into Investing.

The Little Book of Common Sense Investing - Jack C. Bogle (Index Strategy)
https://amzn.to/3sc1Wau

The Little Book The STILL Beats the Market - Joel Greenblatt (Simple Strategy)
https://amzn.to/3f3xtI3

The Acquirer’s Multiple - Tobias E Carlisle (Simple Strategy)
https://amzn.to/3scoc43

The Dhandho Investor - Mohnish Pabrai (My Favorite Investor)
https://amzn.to/3lEyZS9

100 Baggers - Christopher Mayer (My Favorite Book)
https://amzn.to/393xNTb

The Education of a Value Investor - GUY SPIER (Advanced Mindset for Serious Investors)
https://amzn.to/3r8W2Wy


My trading platform that I use. Reliable and regulated trading platform.
SAXO BANK LINK: https://www.home.saxo/en-mena/accounts?cmpid=web-mena-ref&refid=1767b34f-a62f-4cc0-ab0c-367cfcdb062a

Twitter:
@abrowninvesting

I based a lot of my knowledge on the great investors. Peter Lynch, Warren Buffett, Charlie Munger, Mohnish Pabrai and a handful of others.

Popularity

Now Ebay isn’t just Ebay.com like most of us know. They also own these classified style websites. Now you might not be that familiar with these websites but I did a little hunting around and found that they are extremely popular websites.

Mobile.de - German Car Sales Website - 26th biggest website in Germany.
Kijiji - Canadian Classified Website. - 16th biggest website in Canada
Gumtree - UK and Australian Classifieds website - 22nd in Australia
Marktplaats.nl - Netherlands Classifieds Website - 10th in Netherlands

Ebay.com in the US is second behind Amazon at about 20% market share. Look Amazon is the top dog here by a lot, but Ebay still has a big piece of the pie. As an alternative to Amazon, I am assuming it has benefited greatly from the lockdowns, we’ll check that in the growth section of the financials.

Recent Q3 Results

EPS $0.85 per share (64% up YOY)
Revenue $2.61 Billion (25% up YOY)
Promoted Listings Revenue $186 Million (79% Up YOY)
Active Buyer Base Up 5% YOY
So a lot of growth from this time last year, similar to what we saw from Amazon, so we can conclude that it is pandemic related tailwinds.
I like that promoted listings revenue grew so much. Promoted listings are what sellers decide to spend to advertise their products on Ebay. This means that sellers are getting good returns and finding Ebay a good place to advertise.

I think if sellers start making good money on Ebay from a return on investment point of view, more and more sellers will list their products on the platform which will increase activity.

Seth Klarman is a real true value investor and one of the most successful of all time.
If you have been watching my channel for a while now, you’ll know that I love a good margin of safety, well Seth Klarman wrote the book on Margin of Safety.
He runs the Baupost Group fund that sits at about 27 Billion dollars of assets. And guess what his biggest investment is? That’s right, its Ebay.

He has over 20% of this big portfolio in Ebay at an average price of about $31 a share. The current share price, depending on when you are watching this is about $50 a share.
So that is a very good indicator of a good buy price. If one of the best Value investors is buying at $31…. And he wrote the book on margin of safety, well I think that would be a good price.

Let me know what you think of Ebay as an investment, I’m interested to hear opinions, hit subscribe so you don’t miss my future video’s and I’ll see you next time.

Видео Ebay Stock Analysis - Why does Seth Klarman Love Ebay? канала Andrew Brown