1. LDVIC 14.84% vs S&P500 23.61% (diff. -8.77%)

2. LDVIC 14.84% vs FundSmith 24.30% (dif -9.46%)

3. DISCLOSURE

4. Investor Psychology :
The best investment analyst is going to be right two out of three times (TEMPLETON)
If you’re terrific in this business, you’re right six out of 10 (LYNCH)
If an investor is right 2 out of 3 times in the investment decisions they make, they would hit the ball so far out of the park, it would be amazing (PABRAI)

5. Investment Rules (MWO):
Investing is a full time job. No if, not buts, no excuses. Buy Berkshire and buy ETFs

6. Investment Rules (MWO):
Investing is a full time job. No if, not buts, no excuses. Buy Berkshire and buy ETFs
The best investor is the one that says no to +99% of ideas. ALL THE TIME.

7. Investment Rules (MWO):
Investing is a full time job. No if, not buts, no excuses. Buy Berkshire and buy ETFs
The best investor is the one that says no to +99% of ideas. ALL THE TIME.
Investing is really simple and not overly complicated. It is mostly down to price.

8. Investment Rules (MWO):
Investing is a full time job. No if, not buts, no excuses. Buy Berkshire and buy ETFs
The best investor is the one that says no to +99% of ideas. ALL THE TIME.
Investing is really simple and not overly complicated. It is mostly down to price.
Look for companies that generate FCF.

12. T

13. T

14. N

15. B

16. N

17. N

18. F

19. It is mostly down to price. Look for companies that generate FCF.
Investment Rules:
It is mostly down to price.
Look for companies that generate FCF.
LOOK AT THE TREND ON THE NUMBER OF SHARES OUTSTANDING

20. Look for companies that generate FCF. Think about the DEBT levels
Investment Rules:
Look for companies that generate FCF.
Think about the DEBT levels
Consider consistent and predictable cash generating businesses

21. FCF Margin at or above 5%. Minimum 3%.
Investment Rules:
FCF Margin at or above 5%. Minimum 3%.

22. Don’t Invest

23. Don’t Invest

29. Hertz:
MCAP: $1.55 B
Share: $18.15 Net debt: ~$3.5B
EV: ~$5B

31. Strategy:
Grow revenue by 2019

32. Refinance some debt and take on more debt
Strategy:
Grow revenue by 2019
Refinance some debt and take on more debt

33. Sell cars that Hertz has difficulty disposing of
Strategy:
Grow revenue by 2019
Take refinance some debt and take on more debt
Sell cars that Hertz has difficulty disposing of

34. EXTREMELY WEAK USED CAR MARKET
Headwinds:
EXTREMELY WEAK USED CAR MARKET

35. Headwinds:
Management refuses to give guidance
Other risks?

36. Competition AVIS: $2.74B
Competition Hertz: $1.55B

38. Risks?

39. Risks:
Competition
Price of petrol
Price comparison websites

40. Risks: Number of airline travellers goes down Debt
Purchasing vehicle costs goes up

41. Shorts

42. Who owns the stock?

44. Fair Value:
-$30-$40 per share (~80% upside)
- +$3B market cap
- Depressed FCF $258 mil in FY 2016 – 12x