The Munger Way

2015 was dismissal! I increased my portfolio just by 3.53%. 2015 Buy Price Buy Date Price Date Perf.abs BEGIN END Hold Nestle 67.89 € 2015-02-09 69.66 € 2015-12-30 2.61% 10.00% 10.26% Barrick Gold 10.99 € 2015-02-09 6.98 € 2015-12-30 -36.49% 20.00% 12.70% Oracle 37.79 € 2015-02-09 33.96 € 2015-12-30 -10.13% 10.00% 8.99% Reply 67.69 € 2015-02-09 127.90 € 2015-12-30 88.95% 10.00% 18.89% SMT Scharf 14.67 € 2015-02-09 10.00 € 2015-12-30 -31.83% 15.00% 10.22% Sold Mircosoft 22.30 € 2013-04-18 38.94 € 2015-09-19 74.62% 10.00% 17.46% Cash 25.00% 25.00% Performance 100.00% 103.53% This year I fa...

Silverlake Axis is a banking software company. It operates in south East Asia and is one of a few player in the banking software oligopoly. Prior to August 2015 Sliverlake Axis was a star. Than the bombshell dropped, as razor99 accused Mr. Goh (60% shareholder and CEO of Silverlake) that he and Silverlake did dubious deals in related party transactions at the expense of minority shareholder [RAZOR99]. The stock got slaughtered - from 1.20 to 0.55 SGD. In January 2016 Deloitte cleared Silverlake of these accusation [DELOITTE]. Is Silverlake a value buy now? Can I trust the numbers? Deloitte Singapore was ordered by Silverlake to investigate razor99 accusations [RAZOR99, DELOITTE]. Deloitte found that for the 3 acquisition in question, the prices 2 had fair prices where 1 was in the higher range of fair. ROI is for the 2 fair acquisitions 10 to 12% whereas the other is about 3%. Today the 3 acquired businesses make up to 85% of revenue. Silverlake today is Silverlake because of the 3 acq...