“Active”​ Investment Management: A Typical Week at Takota

Date Added: September 7, 2018 | Comments Off on “Active”​ Investment Management: A Typical Week at Takota | Filed under: Blog

At Takota we take the “active” part of active investment management seriously. Active management to us is not active in the sense of actively trading securities. No, for us, active investment management is the act of trying to always dig a little further and enhance our understanding of the businesses that we own and taking those actions to protect, and advance the real value of those businesses.

Let me give you some examples of what I mean by recounting a typical week at Takota which saw us:

1. Negotiating and signing a lock up agreement in support of a forthcoming merger between a portfolio company and another public company which will bring value to our holding in the form of cash, other assets, projects, and importantly share price liquidity.

2. Arranging a meeting to introduce a portfolio company to a potential source of friendly patient capital, thereby allowing the company to escape the frequent mood swings of Bay St. finance, really trying to help put into place the last piece of structure in order for this Company to become a big success.

3. Trying to accelerate negotiations between a portfolio company and its joint venture partner by proposing a negotiating strategy to the Chairman of the Company and arranging a subsequent meeting meant to introduce another party that may have an interest in participating in the joint venture.

4. Continuing my education on a sector with strong demographic potential by arranging two meetings with people already operating in the sector for next week.

To paraphrase an idea of Charlie Munger’s, we think that if by the time Friday comes along when we have finished our work for the week, if we have moved things a little further along than when we arrived at the office on Monday, and during the course of that week if we go to bed each night a little wiser than when we woke up that morning, that slowly but surely, over time, we will succeed. This is what active investment management means to us.

Scott


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