How To Analyse the INDUSTRY - My Checklist Part 1 Markel Stock Analysis

My Checklist Analysis Process - Industry - Markel
Interactive Brokers: My Main Brokerage Platform to Buy, Sell and Hold My Investments
(GET FREE IBKR STOCK WITH THIS LINK) - https://ibkr.com/referral/andrew975

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

Saber Capital Write Up
https://sabercapitalmgt.com/markel-mkl-a-compounding-machine/

The company that I will be using as the example is Markel. Which has been described as a mini Berkshire Hathaway.
This caught my attention as Berkshire Hathaway is probably the greatest stock of all time. So if there is a chance that we are witnessing a young Berkshire Hathaway, well I need to investigate that.
So let’s investigate it together.

My Checklist

Industry:
1. Do I think I can easily understand this business? (maybe not now, but shouldn’t be too hard)
2. What Guru’s are investing in this company?
3. Do I like the industry?
4. Is it in a no growth industry? (this is a good thing)
5. Is it in a boring industry?
6. What type of investment is it? Fast grower, Stalwart, Asset play, turnaround, cyclical?
7. Does the company have reasonably simple plans for growth in the future?
8. Is the market cap bigger than 10 billion?
9. How big could the market/business potentially be?

Does the company Have a Competitive Advantage?
Watch part 2

Management

1. Return on Tangible Equity. Above 15% and growing. Look at how they performed over 15 years (I want to see the performance in the GFC)
2. ROIC. Above 15% and consistent over 5 years. Look at how they performed over 15 years (I want to see performance in the GFC).
3. Does it pay a dividend?
4. Debt/Equity under 0.7 and pretty good at looking after their debt.
5. Current Ratio over 1.5 is preferred. Over 1 is important.
6. Cash in the bank - Can the debt be paid off quickly if needed?
7. Cash in the bank - is it growing?
8. Are the current assets strong enough to get through tough times? (is current assets bigger than average expenses (in income statement).
9. How big is the Goodwill in relation to the assets, is it less than 1/5th?
10. Free cash flow - is it growing or at least stable.
11. How honest does the CEO sound in the last 3 years of annual reports?
12. How salesy does the CEO sound in interviews?
13. Does the CEO sound defensive in difficult times?
14. Read the CEO’s background, try work out how smart they are.
15. How invested is the CEO in the company? Are their shares more than their salary?
16. Institutional ownership? Lower the better
17. Are their rumors and current issues with the company that probably are temporary?
18. Are insiders buying? (selling is not as important)
19. Is the company buying back shares?

WATCH
Part 2 for the Competition Analysis,
Part 3 for the Management Analysis,
Part 4 for the Thesis and Valuation.

Видео How To Analyse the INDUSTRY - My Checklist Part 1 Markel Stock Analysis канала Andrew Brown