Corporate Governance

Gustavo Ballvé on August 25th, 2016

It was my birthday yesterday and I want to share a great information source with my readers: the Valor Intrínseco blog (translation: Intrinsic Value), which joins our blogroll. The blog posts are only in Portuguese, but its subject matter is Value Investing and the material they source is, 99% of the time, in English. I am more than glad to help this “competitor” out because great work always deserves praise – and because there is so much noise in the investment world, we need all the help we can get to hone in on the good stuff.

Read more about A birthday gift from me

Gustavo Ballvé on August 3rd, 2016

It is impossible not to be criticized when you are in the spotlight. Case in point: Warren Buffett. In the space of two weeks he has been criticized for supporting Hillary Clinton in the US presidential race, for a Corporate Governance “manifesto” co-signed by several CEOs (I’ll adress that in a separate post), and now for being increasingly “relentless” in his search for efficiency.

Read more about Warren Buffett: recent criticism

Gustavo Ballvé on July 21st, 2016

An (unnecessary) debate has begun about the right of Board members to access data in excess of what management provides, if necessary. We can and should discuss the form of potential abuses and its punishments, as well as reasonable boundaries of access to management and data. But we should not seek to remove a basic right of the Board members, who are personally liable for their decisions.

Read more about Overkill – basic Board member rights threatened

Gustavo Ballvé on July 7th, 2016

Two noteworthy articles and one notable initiative in Brazilian CG practices nowadays. One regards an already-missed opportunity, the others still have potential (but should be treated with priority by investors interested in improving Brazilian capital markets).

Read more about Chances (blown?) for CG improvement in Brazil

Gustavo Ballvé on July 1st, 2016

After a very public fraud issue with insurance licensing, Zenefits is taking steps to re-adequate its financing and shareholder base. Yes, it is in exchange for a promise of no legal action, and no, not everyone is happy – but it seems as interesting as it is unusual.

Read more about Unusual steps at Zenefits

Gustavo Ballvé on May 17th, 2016

Very interesting article on HBR.org: The Case for Activist Investors. The first book highlighted in the article – “Dear Chairman” – sounds like a great read, as it compiles now-classic investor letters to Board members and to the executive teams of companies they invested in.

Read more about Shareholder activism on HBR.org

Quoting Buffett, Munger and Klarman – and others of different areas – is sure to get our attention. When that letter is written by an NBA head coach as a send-off from his job, that is simply impressive.

Read more about Unusual letter to “investors” by former 76ers coach Sam Hinkie

Gustavo Ballvé on February 27th, 2016

I have just finished reading Berkshire Hathaway’s 2015 10-K. The letter to shareholders by Warren Buffett (edited by Carol Loomis) is brilliant, as usual. I have written here about how these two “walk their talk” (Buffett and Munger), and this 51st letter to Berkshire shareholders is another fine example. The section on Productivity is mandatory reading, especially so for Brazilians.

Read more about Berkshire Hathaway 2015 annual report + Munger Residences

Stanford GSB professors surveyed 80 managers of Berkshire Hathaway subsidiaries, giving us an up-to-date look into what these executives think about their parent company – and the way their “oversight” works. The consistency in their answers is astounding.

Read more about A survey of Buffett’s managers – or “Walking the Talk, part 2”

Gustavo Ballvé on October 21st, 2015

Bovespa’s Corporate Sustainability Index (“ISE”) is about to turn 10 in November and it has outperformed the flagship Bovespa Index. We are firm believers in active, case-by-case, in-depth investigative investing in our fund, but it doesn’t blind us to the potential benefits – for some – of index investing. The devil is in the details of any index’s formation, criteria, balancing and so on. Furthermore, the dangers of an inflexible mandate are well-known.

Read more about Bovespa’s “Sustainability” index trounces Ibovespa

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