The Sijoitus Invest 2019 investment fair will be held at Messukeskus next week (26-27.11.2019), and I thought I’d create a dedicated thread for it (so it’s easy to find) where we can chat about the event and which presentations you’re planning to attend.
Scanning through the program, the event seems surprisingly good; there were times when investment fairs offered less interesting content. Now there’s a wide variety of presentations.
I personally plan to start the fair with Merja Mähkä’s presentation; it’s always nice to hear about others’ experiences. Then, of course, I’ll attend Harvia’s presentation, as it’s my portfolio’s largest investment. I’m also considering checking out the presentations on stock picking and small-cap companies. And, of course, during breaks, I’ll wander around the exhibitors’ stands to see if there’s anything interesting. The downside of this event is that it’s held in the middle of the week every year, which causes time management issues. They should move it to the weekend in the future, so it would be easier for people to arrange their attendance.
Are any of you going, and which presentations are you interested in? And what are your general thoughts on the event?
I myself am coming at least to see Heikkilä&Vilén on 26.11, but I’ll probably be there already before 16.00. The plan before Heikkilä&Vilén is to wander around a bit, maybe watch a bit of that live trading competition that’s going on there It’s sure to be a nice event, although I agree with your point, @Gadus, that there isn’t much sense in not holding these fairs on a weekend.
What all is coming online live and as a recording? I was planning on coming in person, but now my work situation is pretty tight, so I won’t have time for more than a quick spin.
To be honest, that Heikkilä & Vilen show was brilliant. It’s always great to watch a smooth performance where tension doesn’t dominate. Otherwise, the viewer can easily feel awkward. Sauli started the show well, and there weren’t really any uncomfortable silent pauses. Bravo.
Mika spoke in the video around 08:00 about a high return on equity. I have actually talked about the exact same thing, but for the life of me, I can’t remember which thread and when. So: if a company generates a high return on equity, does it have competitive advantages? Not necessarily. It could also be that the company operates in an industry that competitors haven’t yet discovered. As I said, when you find a company that generates a high return on equity, the basic assumption should be that competitors just haven’t entered the territory yet. If the company has been able to generate a higher return on equity compared to its competitors for a good while (years?), then the situation may genuinely indicate sustainable competitive advantages.
If a company operates in a new industry and generates a tremendous return on capital, it might be wise to consider how long the company can do that and how it is priced into the stock. If the business doesn’t require large amounts of capital, the entry barrier is low, and nothing prevents competitors from trying to do the same business. And then, if this company doesn’t have real competitive advantages, you shouldn’t get used to a high return on capital, because that’s how markets work. There is no scenario where a company can make chilling profits year after year with low capital, and no one else is interested in running the same business. That’s just how it goes.
Gadus:
