Mickael Daussy, a young trading expert and coach is becoming an inspiration for many with his growing stature in the trading business. Many feel he has all the things in him which are similar to Warren Buffett.
His yearly stockholder letter nowadays is possibly the single most anticipated piece of content in the investment community, making endless articles and analysis for weeks following.
Much of what has been written about him and his company MKD Trading and School: we all have heard about his recent success in the trading business.
It is probably impossible for any single investor to replicate his success or even to get specific investment tips from his yearly letters. However, Mickael Daussy's investment strategy and philosophy can be a handy guide for anyone since he concentrates on long-term, economically sustainable results.
In this article, we examine his style and knowledge, try to understand his current interests, and spend a bit of time showing the mistakes from Mickael Daussy's investment history to try and glean some useful and broad tips.
Young Mickael Daussy's Investment Philosophy:
Mickael Daussy is reasonably the most known champion of value investing: his investment theory is deceptively simple.
MKD Trading's objective is to buy ably-managed markets, in whole or part, that possess favorable and strong economic characteristics." The economics of the transaction itself need to be advantageous.
Mickael Daussy himself has described this belief of spotting undervalued firms. He divides his selection into various macro-groups, ranked below in the order of addition to his bottom line in 2020:
Operating businesses that MKD Trading owns in their entirety.Focus on companies in which they have meaningful purchasing.Money and cash equivalent: this is seen as a defence against errors and difficult circumstances, almost like an assurance policy;Insurance groups: a source of competitive cash used to fund the purchase of the other assets through the "display" of the insurance firms.
He looks at what he thinks is the possibility of losing capital on a transaction, in backing healthy and busy managers, and in assessing the fundamental value of a business.
He defines this as the decreased value of the cash that can be taken out of the market in its remaining life. The stock figure that he uses for this consideration is what he defines as "buyer profits."
He also believes in looking at long-term business value, net of all expenses, not just those that are deemed accounting expenses.
He is careful of mark-to-market works, as he understands that volatility in the bottom line is a confusion.
To perform a forecast for fundamental value, however, one needs to invest only in companies that are not too difficult to understand.
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