Following Great Public Companies, Watchlist Investing

Watchlist Investing

Following Great Public Companies

Exploring timeless investing concepts in the search for great businesses.

Equity Bottom-Up

Mainfreight Limited provides and supplies freight, warehousing and logistics services throughout New Zealand and Australia.  The Company provides freight forwarding services by road, rail, sea and air along with providing international freight forwarding services, customs clearance services and specialized handling of hazardous substances.

<ul><li>Mainfreight came on my radar thanks to Jessie Rancourt, a friend and fellow value investor, who mentioned it during a subscriber meetup a few months ago.</li><li>Mainfreight is in the supply chain logistics industry, an extremely broad category covering a huge segment of the world economy and harboring (pun intended) many niches and specialties.</li><li>I decided a look at the company would fit in well with my coverage of Old Dominion Freight Line (ODFL | Disclosure: None) in the U.S. less-than-truckload space and Triumph Financial (TFIN | Disclosure: Long) in the banking-cum-truckload finance space.</li></ul>

Mainfreight came on my radar thanks to Jessie Rancourt, a friend and fellow value investor, who mentioned it during a subscriber meetup a few months ago.Mainfreight is in the supply chain logistics industry, an extremely broad category covering a huge segment of the world economy and harboring (pun intended) many niches and specialties.I decided a look at the company would fit in well with my coverage of Old Dominion Freight Line (ODFL | Disclosure: None) in the U.S. less-than-truckload space and Triumph Financial (TFIN | Disclosure: Long) in the banking-cum-truckload finance space.

Thematic (Sector/Industry)

<ul><li>The Boston Federal Reserve put out a short white paper on the Silicon Valley Bank crash and the accounting for debt securities known as held-to-maturity or HTM.</li><li>It’s a nice short read and got me thinking about this issue again, which I examined back in May in Issue #100 (link below).</li><li>The question, which has not definitively resolved itself in academia or policy circles, centers around bank accounting and whether banks should be allowed to value bonds they’re not planning on selling (hence the term held-to-maturity) based on amortized cost.</li></ul>

The Boston Federal Reserve put out a short white paper on the Silicon Valley Bank crash and the accounting for debt securities known as held-to-maturity or HTM.It’s a nice short read and got me thinking about this issue again, which I examined back in May in Issue #100 (link below).The question, which has not definitively resolved itself in academia or policy circles, centers around bank accounting and whether banks should be allowed to value bonds they’re not planning on selling (hence the term held-to-maturity) based on amortized cost.

112: More Thoughts On Banks' HTM Portfolio; Boston Fed Paper

Triumph Financial Inc. offers traditional banking products as well as commercial finance products to businesses that require specialized and tailored financial solutions.

<ul><li>Included in bank earnings is a provision for loan losses.</li><li>In a perfect world, management would know exactly which loans would go bad and how much money they would lose on those loans.</li><li>In reality, estimates are required. Like insurance companies, banks typically apply a statistical model based on the risk rating classification of their loan book plus any specific reserves. </li></ul>

Included in bank earnings is a provision for loan losses.In a perfect world, management would know exactly which loans would go bad and how much money they would lose on those loans.In reality, estimates are required. Like insurance companies, banks typically apply a statistical model based on the risk rating classification of their loan book plus any specific reserves. 

90: Adventures In Accounting: Triumph Bancorp ($TBK) Charge-Off Analysis

The Sherwin-Williams Company manufactures, distributes, and sells paints, coatings, and related products.  The Company's products are sold to professional, industrial, commercial, and retail customers primarily in North and South America. Sherwin Williams also has additional operations in the Caribbean region, Europe and Asia.

<ul><li>Sherwin-Williams continues the home improvement theme started last month by Home Depot and Lowe’s (HD, LOW | Disclosure: None).</li><li>SHW is the dominant player in the architectural coatings industry.</li><li>The scientific-sounding industry classification translates into paint for the interior and exterior of buildings.</li></ul>

Sherwin-Williams continues the home improvement theme started last month by Home Depot and Lowe’s (HD, LOW | Disclosure: None).SHW is the dominant player in the architectural coatings industry.The scientific-sounding industry classification translates into paint for the interior and exterior of buildings.

85: Watchlist Update: Adding Sherwin-Williams

<ul><li>I’m currently working on the September issue of Watchlist Deep Dives, which features Sherwin-Williams.</li><li>My research process is primary-sources focused and that means reading lots of 10K’s, which include a report from the company’s auditors.</li><li>I was surprised to see that Ernst &amp; Young had served as SHW’s auditor since 1908.</li></ul>

I’m currently working on the September issue of Watchlist Deep Dives, which features Sherwin-Williams.My research process is primary-sources focused and that means reading lots of 10K’s, which include a report from the company’s auditors.I was surprised to see that Ernst &amp; Young had served as SHW’s auditor since 1908.

83: Initial Thoughts On Sherwin-Williams (SHW)