Tom Russo Powerpoint

7/31/2019 Tom Russo Powerpoint

1/31

Thomas A. Russo

CFA Society of Nebraska Dinner

May 3, 2012


2/31

2


3/31

3


4/31

4


5/31


6/31

6

Capacity to Suffer

B ERKSHIRE H ATHAWAY INC.

GEICO

Equity index put options

Extraordinarily cautious short-term deposits,fiscal year, 2007
http://www.geico.com/about/commercials/


7/317

Nestl S.A.Capacity to Reinvest


8/31

8


9/31

YE 2008 Billionaire Brands Presentation

9


10/31

Nestl Capacity to ReinvestYE 2011 Billionaire Brands Presentation

10


11/31

Nestle Capacity to Suffer

Russian Ruble crisis (1998) Nespresso

China and India

Alcon (1970s through 2010)

Novartis payment/DiGiorno acquisition (2010)

2011 Chinese acquisitions in confectionary (Hsu Fu Chi International )and beverage (Yinlu.)

11


12/31

12

Pernod RicardCapacity to Reinvest
http://www.pernod-ricard.com/en/pages/430/pernod/Brands/Key-brands/Martell.htmlhttp://www.pernod-ricard.com/en/pages/429/pernod/Brands/Key-brands/Chivas-Regal.htmlhttp://www.pernod-ricard.com/en/pages/281/pernod/Brands/Key-brands/Perrier-Jouet.htmlhttp://www.pernod-ricard.com/en/pages/280/pernod/Brands/Key-brands/Mumm.htmlhttp://www.pernod-ricard.com/en/pages/2816/pernod/Brands/Key-brands/ABSOLUT-VODKA.htmlhttp://www.pernod-ricard.com/en/pages/275/pernod/Brands/Key-brands/Havana-Club.htmlhttp://www.pernod-ricard.com/en/pages/274/pernod/Brands/Key-brands/Beefeater.htmlhttp://www.pernod-ricard.com/en/pages/279/pernod/Brands/Key-brands/Montana.htmlhttp://www.pernod-ricard.com/en/pages/273/pernod/Brands/Key-brands/Malibu.htmlhttp://www.pernod-ricard.com/en/pages/272/pernod/Brands/Key-brands/Kahlua.htmlhttp://www.pernod-ricard.com/en/pages/271/pernod/Brands/Key-brands/Ballantine-s.htmlhttp://www.pernod-ricard.com/en/pages/278/pernod/Brands/Key-brands/Jacob-s-Creek.htmlhttp://www.pernod-ricard.com/en/pages/268/pernod/Brands/Key-brands/Ricard.htmlhttp://www.pernod-ricard.com/en/pages/266/pernod/Brands/Key-brands/Jameson.htmlhttp://www.pernod-ricard.com/en/pages/265/pernod/Brands/Key-brands/The-Glenlivet.html


13/31

13


14/31

Pernod Ricard Capacity to Suffer

China (early 2000s) Addressable market -- over 500 million cases local spirits

Absolut (2009) global leader & premium vodka

India (2012) Addressable market -- over 100 million cases of India made

Scotch Whiskey currently consumed Leading premium priced local Scotch Whiskey brand

14


15/31

15

SABMillerCapacity to Reinvest
http://www.sabmiller.com/index.asp?pageid=1436http://www.sabmiller.com/index.asp?pageid=1429http://www.sabmiller.com/index.asp?pageid=1419http://www.sabmiller.com/index.asp?pageid=1423http://www.sabmiller.com/index.asp?pageid=1430http://www.sabmiller.com/index.asp?pageid=1669http://www.sabmiller.com/index.asp?pageid=1418http://www.sabmiller.com/index.asp?pageid=1425


16/31

16

SABMiller Capacity to Suffer


17/31

17

Credit Default Mayhem, 2008-2009


18/31

SABMiller Capacity to Suffer

China 50% interest in Snow, Chinas leading brewer

Sub-Saharan Africa Addressable market -- 400 million barrels beer consumption

Indian Market Addressable market current consumption 1 liter per capita

Recently completed Fosters acquisition

Strategic partnership with Efes to coordinate Russian operationsand expand together in Turkey, Efes home market

18


19/31

19

Market Volatility is a Friend of the Long-termGlobal Value Investor

1. Permits more effective reinvestment.

2. Offers merger and acquisition opportunity.

3. Enhances return from share repurchase.


20/31

20

Capacity to Suffer


21/31

21

Semper Vic Partners, L.P., Annual Return

Semper Vic Dow Jones S & PYear Partners Industrials 5002012 (Thru 3/31) 12.2% 8.8% 12.6%2011 6.7% 8.4% 2.1%

2010 21.5% 14.0% 15.1%2009 25.8% 22.7% 26.5%2008 -31.5% -31.9% -37.0%2007 7.7% 8.9% 5.5%2006 20.8% 19.1% 15.8%2005 3.2% 1.7% 4.9%2004 11.9% 5.3% 10.9%2003 33.5% 28.3% 28.7%2002 -1.0% -15.1% -22.1%2001 0.1% -5.4% -11.9%

2000 15.6% -4.7% -9.1%1999 -2.1% 27.2% 21.0%1998 23.8% 18.1% 28.6%1997 24.7% 24.9% 33.4%1996 19.0% 28.8% 23.0%1995 23.6% 36.9% 37.5%1994 12.4% 5.0% 1.3%1993 22.1% 16.7% 10.1%1992 13.4% 7.4% 7.6%1991 27.4% 24.5% 30.5%1990 5.3% -0.7% -3.1%1989 24.6% 31.8% 31.7%1988 19.8% 16.2% 16.5%1987 37.1% 5.5% 5.2%1986 24.8% 27.2% 18.8%1985 43.9% 33.6% 31.7%1984 13.6% 1.0% 6.2%

Compound Annual Return 15.3% 11.7% 10.6%


22/31


23/31

23


24/31


25/31


26/31


27/31

27

Semper Vic Partners, L.P.Annual Summary of Limited Partner Returns

Currency Effects Highlights

Semper Vic Dow Jones S & PYear Partners Industrials 500

2012 (Thru 3/31) 12.2% 8.8% 12.6%2011 6.7% 8.4% 2.1%2010 21.5% 14.0% 15.1%2009 25.8% 22.7% 26.5%2008 -31.5% -31.9% -37.0%2007 7.7% 8.9% 5.5%2006 20.8% 19.1% 15.8%2005 3.2% 1.7% 4.9%2004 11.9% 5.3% 10.9%2003 33.5% 28.3% 28.7%

2002 -1.0% -15.1% -22.1%2001 0.1% -5.4% -11.9%2000 15.6% -4.7% -9.1%1999 -2.1% 27.2% 21.0%1998 23.8% 18.1% 28.6%1997 24.7% 24.9% 33.4%1996 19.0% 28.8% 23.0%1995 23.6% 36.9% 37.5%1994 12.4% 5.0% 1.3%1993 22.1% 16.7% 10.1%

1992 13.4% 7.4% 7.6%1991 27.4% 24.5% 30.5%1990 5.3% -0.7% -3.1%1989 24.6% 31.8% 31.7%1988 19.8% 16.2% 16.5%1987 37.1% 5.5% 5.2%1986 24.8% 27.2% 18.8%1985 43.9% 33.6% 31.7%1984 13.6% 1.0% 6.2%

Compound Annual Return 15.3% 11.7% 10.6%


28/31

28

Semper Vic Partners, LPAnalysis of Currency Contribution

From December 31, 1999 through March 31, 2012

Year Foreign CurrencyPortfolio Effect 1

Semper Vic Partners,

(Q.P.) L.P. TotalReturn Semper Vic Partners,L.P. Total Return

Dow Jones

IndustrialAverage S&P 500

2012 YTD 2.0% 11.8% 12.2% 8.8% 12.6%2011 -0.7% 6.8% 6.9% 8.4% 2.1%2010 1.6% 21.2% 21.5% 14.1% 15.1%2009 3.4% 26.9% 25.8% 22.7% 26.5%2008 -2.6% -30.5% -31.5% -31.9% -37.0%2007 3.3% 7.1% 7.7% 8.9% 5.5%2006 3.8% 19.8% 20.8% 19.1% 15.8%2005 -4.2% 3.7% 3.2% 1.7% 4.9%2004 2.8% 10.0% 11.9% 5.3% 10.9%

2003 4.8% na 2 33.5% 28.3% 28.7%

2002 5.4% na 2 -1.0% -15.1% -22.1%

2001 -1.0% na 2 10.0% -5.4% -11.9%

2000 -2.2% na 2 15.6% -4.7% -9.1%

Comparison of Contribution for the Semper Vic Partnerships

Foreign CurrencyPortfolio Effect 1

Semper Vic Partners,(Q.P.) L.P. Total

ReturnSemper Vic Partners,

L.P. Total Return

Dow JonesIndustrialAverage S&P 500

1 Year -1.8% 15.5% 15.8% 10.2% 8.5%3 Year 4.0% 117.0% 116.6% 78.9% 87.8%5 Year 4.6% 33.3% 31.7% 22.7% 23.5%

10 Year 17.57% na 2 132.26% 63.05% 49.63%

1) Based on a weighted average2) QP commenced 10/15/2003


29/31

29


30/31

30


31/31

Tom Russo Powerpoint

Documents

Transcript of Tom Russo Powerpoint