A summary of this week’s best articles. Follow us on Twitter (@INTRINSICINV) for similar ongoing posts and shares.
Like many investors we love a good paying dividend stock. But what we really look for is companies with high and sustainable cash flow production, run by management teams that allocate that cash in the most productive way possible. In this piece Vitaliy Katsenelson pushes back on some investors’ myopic focus on dividends in an argument we strongly support. Ensemble President and CIO, Sean Stannard-Stockton wrote about his thoughts on stock valuations in this article: The Risk of Low Growth Stocks.
New York Times CEO Warns Publishers Ahead of Apple News Launch (Reuters, The New York Times)
Apple is expected to launch an ambitious new entertainment and paid news digital service next Monday as they push back against streaming video leader Netflix. This has Mark Thompson, CEO of the New York Times feeling uneasy as he has warned that relying on a third party for distribution can have dangerous consequences for publishers as they may lose control over their own content.
Airlines Review Plans as Boeing Phases First Cancellation of 737 MAX Order (Robert Wall, @R_Wall, The Wall Street Journal)
Boeing is one of two major commercial aircraft producers and with the recent problems of the 737 MAX, they’re having to adapt quickly as passengers are losing confidence in this aircraft. Following the two accidents, regulators idled the global fleet of more than 370 MAX planes and Vietnam’s VetJet are considering halting all future purchases. Although the aircraft represents only a fraction of Boeing’s global fleet, the company is having to adapt fast to avoid negative customer sentiment.
While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.
The information contained in this post represents Ensemble Capital Management’s general opinions and should not be construed as personalized or individualized investment, financial, tax, legal, or other advice. No advisor/client relationship is created by your access of this site. Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. If a security discussed in this blog entry is owned by clients invested in Ensemble Capital’s core equity strategy you will find a disclosure regarding the security held above. If reviewing this blog entry after its original post date, please refer to our current 13F filing or contact us for a current or past copy of such filing. Each quarter we file a 13F report of holdings, which discloses all of our reportable client holdings. Ensemble Capital is a discretionary investment manager and does not make “recommendations” of securities. Nothing contained within this post (including any content we link to or other 3rd party content) constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instrument. Ensemble Capital employees and related persons may hold positions or other interests in the securities mentioned herein. Employees and related persons trade for their own accounts on the basis of their personal investment goals and financial circumstances.