The Manual of Ideas March 2016 The Super Investors Issue - Table of Contents

1. Value-oriented Equity Investment Ideas for Sophisticated Investors
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Investing In The Tradition of
Graham, Buffett, Klarman
Year IX, Volume III
March 2016
When asked how he became so
successful, Buffett answered:
“We read hundreds and hundreds
of annual reports every year.”
Top Ideas In This Report
Fiat Chrysler
(NYSE: FCAU) …………………… 84
Franklin Resources
(NYSE: BEN) …………………….. 88
VimpelCom
(Nasdaq: VIP) ……………………120
Also Inside
Editorial Commentary ………………. 3
Christopher Begg on Investing …….. 8
Superinvestor Portfolio Analysis … 12
Michael Mauboussin on Investing .. 48
Profiling Superinvestor Ideas …… 52
10 Essential Value Screens ……… 142
Highlighted Events — Join Us!
Asian Investing Summit 2016
April 5-6, 2016, fully online
valueconferences.com
The Zurich Project Workshop 2016
June 8-9, 2016, Zurich
zurichworkshop.com
Wide-Moat Investing Summit 2016
June 28-29, 2016, fully online
valueconferences.com
Latticework 2016
September 14, 2016, New York
latticework.com (coming soon)
VALUEx Munich 2016
September 20, 2016, Munich
valuex.org
THE SUPER-
INVESTORISSUE
► Screening the Top Holdings of the Signal Value 100™
► 20 Companies Profiled by The Manual of Ideas Research Team
► Proprietary Selection of Top Three Candidates for Investment
► Exclusive Interview with Christopher Begg
► Exclusive Interview with Michael Mauboussin
► 10 Essential Screens for Value Investors
Superinvestor holdings analyzed in this issue include
American Express (AXP), Ametek (AME), Anheuser-Busch (BUD),
Antero Resources Corp. (AR), Apache (APA), Banner Corp. (BANR),
Delta Air Lines (DAL), Dover Corp. (DOV), Fiat Chrysler (FCAU),
Franklin Resources (BEN), McGraw-Hill (MHFI), Outerwall (OUTR),
Range Resources (RRC), Royal Dutch Shell (RDS.A),
Taiwan Semiconductor (TSM), Unit Corp. (UNT), Verisk Analytics (VRSK),
VimpelCom (VIP), Whirlpool (WHR), and Whole Foods Market (WFM).
New Exclusive Content
in the MOI Members Area
(log in at www.manualofideas.com
or email support@manualofideas.com)
 Pabrai, Shearn, and Spier on Investment Checklists
 Fang Li on Business Quality and Valuation
 PREMIUM: Michael Mauboussin Shares His Wisdom (video)
Register at ValueConferences.com
Join us at Asian Investing Summit
2016, the fully online conference
hosted by ValueConferences and
The Manual of Ideas.
Visit ValueConferences.com

2. Table of Contents
EDITORIAL COMMENTARY ......................................................................... 3
CHRIS BEGG ON THE “LOGARITHMIC PATH” TO WISDOM ................... 8
SUPERINVESTOR ACTIVITY: SNAPSHOT ............................................... 12
SUPERINVESTOR PORTFOLIOS: SIGNAL VALUE 100™....................... 14
MICHAEL MAUBOUSSIN SHARES HIS INVESTMENT WISDOM ............ 48
PROFILING TWENTY SUPERINVESTOR HOLDINGS .............................. 52
AMERICAN EXPRESS (AXP) – AQUAMARINE , BRK , DAVIS , TWEEDY  ..........................52
AMETEK (AME) – ARTISAN , FMR , SQ , T ROWE , WELLINGTON  .............................56
ANHEUSER-BUSCH INBEV (BUD) – GARDNER RUSSO , LONE PINE , SENATOR ...............60
ANTERO RESOURCES (AR) – APPALOOSA , BAUPOST , BRAVE WARRIOR , CITADEL ....64
APACHE (APA) – CLEARBRIDGE , DAVIS , DODGE & COX , HARRIS  .............................68
BANNER CORP. (BANR) – APG , DAVIS , GSAM , OAKTREE ..............................72
DELTA AIR LINES (DAL) – APPALOOSA , MUHLENKAMP , OLSTEIN , OMEGA ..................76
DOVER CORP. (DOV) – GARDNER RUSSO , HARRIS , OLSTEIN , PZENA ..........................80
FIAT CHRYSLER (FCAU) – AQUAMARINE , EXOR , HARRIS , PABRAI  ...........................84
FRANKLIN RESOURCES (BEN) – ABRAMS , ARIEL , OLSTEIN , PZENA , VULCAN .......88
MCGRAW-HILL FINANCIAL (MHFI) – CANTILLON , EGERTON , FMR , MARKEL  ............92
OUTERWALL (OUTR) – ARLINGTON , ENGAGED , FINE , MUHLENKAMP ........................96
RANGE RESOURCES (RRC) – APPALOOSA , CAP RE , SAILINGSTONE , WEITZ ........100
ROYAL DUTCH SHELL (RDS) – DODGE & COX , FRANKLIN , PZENA , TWEEDY  .............104
TAIWAN SEMICONDUCTOR (TSM) – ACADIAN , AQR , CAP WORLD , OAKTREE  .............108
UNIT CORP. (UNT) – CENTURY , FRANKLIN , HEARTLAND , ROYCE , VICTORY ...........112
VERISK ANALYTICS (VRSK) – AKRE , BAMCO , BRK , MARKEL , WEDGEWOOD .........116
VIMPELCOM (VIP) – ABRAMS , JERICHO , OAKTREE , PAMET , VAN ECK  .................120
WHIRLPOOL (WHR) – APPALOOSA , CITADEL , GREENHAVEN , HARRIS  .......................124
WHOLE FOODS (WFM) – CAP RE , GSAM , HILLMAN , SANDS , THORNBURG  ........128
SCREENING THE HOLDINGS OF 100 SUPERINVESTORS................... 132
TOP 100, BY MARKET VALUE...................................................................................................132
TOP 100, BY THIS FY EPS YIELD (CONSENSUS ESTIMATES) .....................................................134
TOP 100, BY NEXT FY EPS YIELD (CONSENSUS ESTIMATES)....................................................136
TOP 100, BY TRAILING GROSS PROFIT TO ENTERPRISE VALUE .................................................138
TOP 100, BY TANGIBLE BOOK VALUE TO MARKET VALUE..........................................................140
TEN ESSENTIAL SCREENS FOR VALUE INVESTORS ......................... 142
“MAGIC FORMULA,” BASED ON TRAILING OPERATING INCOME...................................................142
“MAGIC FORMULA,” BASED ON THIS YEAR’S EPS ESTIMATES ...................................................143
“MAGIC FORMULA,” BASED ON NEXT YEAR’S EPS ESTIMATES..................................................144
CONTRARIAN: BIGGEST YTD LOSERS (DELEVERAGED & PROFITABLE).......................................145
CONTRARIAN: CHEAP FREE CASH FLOW GUSHERS ..................................................................146
VALUE WITH CATALYST: CHEAP REPURCHASERS OF STOCK .....................................................147
PROFITABLE DIVIDEND PAYORS WITH DECENT BALANCE SHEETS .............................................148
DEEP VALUE: LOTS OF REVENUE, LOW ENTERPRISE VALUE .....................................................149
DEEP VALUE: NEGLECTED GROSS PROFITEERS.......................................................................150
ACTIVIST TARGETS: POTENTIAL SALES, LIQUIDATIONS OR RECAPS ...........................................151

3. Value-oriented Equity Investment Ideas for Sophisticated Investors
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