Latticework Investor

Value Investing

Patrick Degorce, Theleme Partners

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Notes from the Value Investing Congress Twitter feed.

Patrick Degorce, Theleme Partners

  • Degorce recently launched, Theleme, with $200 million AUM. Was co-founder of TCI (Children’s Investment Fund)
  • Time horizon extremely important to DeGorce; typical time horizon 4- 5 years
  • Invest in businesses that you understand, don’t worry about what markets are doing, says Degorce, echoing Buffet
  • Degorce values businesses based on DCF
  • Don’t confuse multiples with value
  • Investment idea: Deutsche Bourse
  • DB earns 45% of EBIT from European fixed income and eq derivatives
  • DB has a growing cash balance, 6.5 billion Euros
  • Company recently announced $150 million Euro cost cutting
  • Generated 3.40 in FCF in 2009, trades around 10 times FCF
  • Greece will save Euro by depressing currency

Written by latticework01

May 6, 2010 at 9:47 am

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