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Bigbaggerhungry thank you sir.
The best has yet to come from Butford, ignore the short term drops and hold tight to get the true value from burford which should be many many times today's share price and valuation.
GTX1
and should have mentioned, the executive chairman (Nick Rowles-Davies) served as MD of Burford in 2014 for a couple years. Stock started to move hard under his tenure...
8 Bagger + in the litigation funding space:
https://www.youtube.com/watch?v=XFClXwzxYi4&t=1s
GTX, ,
Re your view,
I couldn't have put it any better myself,
This company is definitely the Big Bagger.
Put into the search bar in this link ,,,,,,,,,The size of the legal services market.
https://www.statista.com
This market is absolutely huge and definitely big enough to keep many many more litigation providers very busy,
Burford is still only sipping water at this huge reservoir of legal work, and only this year is their voice and offerings of legal funding strategies being tentatively understood by companies looking around for legal financing options due to the financial constraints on thousands of companies balance sheets, so In my opinion I actually think the litigation market forecasters maybe even largely underestimating the size and growth of this market after the pandemic and accompanying damage to companies balance sheets, the pandemic could be the catalyst to massively jumpstarting many many more companies to the use of litigation funding, no risk to their balance sheets or profits ,and even money upfront from very strong looking lawsuits.
they get 70% we clear 30% profit and bonuses. We get the massive yearly compounded growth, they win , we win , we all win , what's not to love about this company and its offerings to the market. and yes I can easily see Burford getting to £24 £30 in just a few years 2/3 , and on to well its anyone's guess, I would guess £40+ and even then rule nothing out , I'm just going on what I feel and see right now, and what's achievable on a medium term basis, any newly discovered revenue streams could make my guessing massively underestimating, so it's anyone's guess here,
The markets can do whatever they like, because Burford is the ideal share to hold now and on a long term basis, it's a great comfort and feeling to hold a share that protects you in any normal downturns or even booming markets.
GTX1
I agree broadly although I think a lot of this depends on Petersen, however much we want to ignore it or get it done with.
If Petersen delivers then we could see an enormous boost to the share price in the short term, and medium to long term we would have almost unlimited money to put to work. It really could be a game changer that makes everyone sit up and want a piece of the litigation finance pie.
I'm all for cross ramping when it's thought out, there's clear value to be had and the poster has similar degrees of conviction. As said this is a coffee can hold for me and its currently c. 30% of my portfolio. RBGP another 23% of the portfolio so while, so far, this year has been good to me, a slight trim here and there would make sense from a risk perspective!
jammy I couldn’t agree more and if someone can point one out that has the same potential then I can reduce here ( just a tad mind u ) I buy in !!!
Gla
ffc
I don't know exactly how long the runway is either. But I think it's long and also think that as more cases become funded, more will see the benefits from not tying up ones own funds and the TAM will become even greater. Maybe margins will fall as more money chases the attractive returns, but we are at the forefront, we have the knowledge, the name and the scale - and believe these are a Moat. But even if margins did fall slightly from current levels, I honestly don't think FFC is too far wrong when he talks about an SP of £100 in many years to come. Whether I'll be around to see it is another matter. I can't see another share with the same potential, but would love pointing in the right direction!
I get the point of reinvesting. The question here is how big is the litigation finance market.
Some people think it will increase exponentially. Others think it will grow but not by that much.
Even Burford admit that they have no clue!
Thanks Jammy
Btw it looks like your little sell the other day was very good timing indeed. , hope your as “ lucky” was buying back ???
Regards
ffc
Thanks for that JammyC, I've downloaded both versions and shall enjoy at my leisure.
Every piece of investment advice from any quarter can always improve investors chance of making better decisions and profits. Cheers Sir.
GTX1
The most important principle is the one identified above. It’s so important it’s worth repeating again: you need a business with a high return on capital with the ability to reinvest and earn that high return on capital for years and years.
Everything else is ancillary to this principle. Below are summaries of these other principles...
Your going to have to buy to read more :)
Akre’s approach is simple and easy to understand. He calls it his threelegged stool. He looks for
• businesses that have historically compounded value per share
at very high rates;
• highly skilled managers who have a history of treating shareholders as though they are partners; and
• businesses that can reinvest their free cash flow in a manner
that continues to earn above-average returns.
We’ve talked about all of these in this book.
As he told me, though, the older he gets, the more he whittles things
down to the essentials. And the most essential thing is that third item.
This is the most important principle behind the 100-bagger. In one of
his letters, he puts it this way: “Over a period of years, our thinking has
focused more and more on the issue of reinvestment as the single most
critical ingredient in a successful investment idea, once you have already
identified an outstanding business.”
Consider a business with $100 invested in it. Say it earns a 20 percent
return on its capital in one year. That is a high return and would get Akre
interested. A 20 percent return implies $20 in earnings. But the key to a
really great idea would be a business that could then take that $20 and
reinvest it alongside the original $100 and earn a 20 percent return again
and again and again
I've a book recommendation for you all: https://www.amazon.co.uk/100-Baggers-Stocks-100-1/dp/1621291650/ref=sr_1_1?dchild=1&keywords=100+baggers&qid=1620906704&sr=8-1
When reading the 'what to look for', I really cant think of a better candidate than Burford. I will post a little on the importance of compounders but recommend all to read the full title. It also highlights the idea of having "coffee-can" whereby you just lock away your highest conviction stocks and leave for at least 10 years. Despite BUR now having a weight of 30% of my portfolio, the stock for me is in there.
If anyone who has read the book and can recommend any other candidates I wouldn't be offended at the cross ramp.