Top 10 Posts of 2019 #10: Analyzing The Louis Vuitton Buyout of Tiffany Part 1
I know you’re likely busy winding down for the end of the year. Spending time with family and friends. Getting ready for 2020. Wrapping up last minute things before taking a break for the holiday. To celebrate the end of the year, I want to share the top 10 posts of 2019 starting today to end the decade and the year, with some valuable things you can learn from over the holiday season, and begin 2020 with some great knowledge, info, and momentum.
These posts were voted on by you with your views/listens/watches. These top 10 blog posts are the top 10 most viewed/listened to/watched videos/podcasts/blog posts of this year.
In today’s post #10, we go back only a few weeks to our latest free case study where we evaluated the Louis Vuitton buyout of Tiffany.
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I hope you enjoy and learn a ton from these 10 posts of 2019 over the coming 10 business days.
Thank you for being a part of this value investing journey.
Jason Rivera
Let’s get to it…
In my network of friends / family / colleagues, I’m most often known as ‘The Investment Guy’.
As a result, I’m often asked about the latest trend in investing. Whether would it be years ago, gold and silver, the Greek Crash a couple of years ago, or more recently, weed stocks and cryptocurrency.
To see our other videos in this series, where I give my thoughts on weed stocks, crypto, diversification, retirement plans, and more, click here.
A couple weeks ago, we valued the Coty buyout of Kylie Cosmetics at a $1.2 billion valuation.
Today, we start an analysis of Tiffany & Co (TIF) after it announced and agreed to a $16 billion buyout by Louis Vuitton Moet Hennessy (LVMUY).
In today’s Part 1, we do a preliminary analysis of Tiffany to begin learning who got the better side of this deal.
“If you were to invest in the company (Tiffany) today, the amount you could expect based on the profitability metrics compared to the company size – in this case, enterprise value – is only 1.8% based on free cash flow 4.6% based on operating profit.” One of my quotes from the video below.
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What I talk about
In the 19-minute video above, I talk about…
- I showed you how to evaluate any stock on a preliminary basis using my personal checklist developed over the last 12+ years
- What I thought of Tiffany at this point
- Showed a couple of relative valuations
- I showed you how I evaluate every single stock I look at on a preliminary level
- And more…
This video is part of the IloveValueInvesting Podcast. You can listen to this episode and our others in this podcast by going here.
If you have any questions at this point in the case study let me know in the comments below so I can answer them in future videos.
If you want to learn from our other case study videos for free click here.
More case studies
In other words, here are other posts in this case study series:
- In Part 2; I explain what all the metrics and terms on the checklist mean and why they’re on the list
- In Part 3; I discussed the cash conversion cycle is and why it’ s so important
- In Part 4; I talked about what Enterprise Value is, its importance, and its calculation
- In Part 5, I wrapped up this case study series and told you my conclusion thoughts on who won this transaction
Next is the top 9 on our top 10 posts of 2019: ROIC and why it’s so important. Stay tuned.
P.S. To get the full preliminary analysis checklist, so you can analyze businesses like in the video above, plus 4 other free gifts that will help you become a great value investor faster, click here.
P.P.S. Go here to get our brand new free guide titled – 7 Tips to Picking Great Stocks and 3 Times You Must Sell for free. In this guide, you’ll learn these things and more of my processes you can learn to begin evaluating companies better and faster, NOW.