The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
why aren't all 5 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
Davis: Private equity reporting returns without leverage adjustments is despicable
“It's just despicable that you show your returns, but you don't adjust them for leverage. Like benchmark them to the S and P with the same amount of leverage”
Davis: Trimming fund holdings because they grow too large is a mistake
“If I had simply bought each stock that I ever bought for the funds in a personal account and held it, then I simply never would have sold simply because something was getting too big. Whereas in the funds, I do that all the time, and it's been a terrible mista…”
Davis: Capital One at a 14% earnings yield beats single-digit real estate cap rates
“I could buy Capital One at a 14% after tax earnings yield. I mean, what's so great? I don't understand this real estate mindset that still thinks that a single digit cap rate, you know, compensates them for the risk that they're taking.”
Davis: Private equity firms focus primarily on exits rather than stewardship
“Private equity loves to tout that they are great managers. They are always looking for the exit”
Davis: Hewlett-Packard board bears responsibility for decades of bad leadership decisions
“I would certainly argue that both Hewlett Packard and Koch, the boards had a lot of accountability for decades of bad decisions. And it was bad decisions on what is the board responsibility, which is who's in charge.”