Société de la Tour Eiffel: Real Estate Giant Without the Eiffel Tower?
🏢 Société de la Tour Eiffel is a real estate company listed in Paris.
🗼 It was originally created to manage the Eiffel Tower but lost the concession in 1979.
💼 The company now focuses on real estate assets in France, maintaining its historic name despite no longer managing the tower.
Denise: The Recycling Giant You’ve Never Heard Of?
♻️ Denise is a vertically integrated metal recycling company involved in collecting, processing, and selling recycled metals.
🛡️ The company benefits from regulatory support and high barriers to entry, making it difficult for competitors to emerge.
💰 Denise generates cash throughout the economic cycle and has a strong balance sheet.
✅ The management team is considered sensible and effective, with a founder still heavily involved as the main shareholder.
Marshall Wells: Buffett’s Early Misstep and a 1% Loss
📉 Buffett invested in Marshall Wells in 1950, acquiring 25 shares at $200 each, totaling $5,000.
💰 The company had a market capitalization of $11.4 million, but its enterprise value was $7 million due to substantial cash reserves.
⚠️ Buffett sold his shares with a 1% loss due to concerns about the management team's strategic direction and lack of action to increase shareholder value.
💸 Despite the loss, Buffett received a dividend of $12 per share that year.
Greif Bros: Buffett’s 20% Annual Return from Wooden Barrels
🚀 In 1951, Buffett invested $650 in Greif Bros, becoming his second-largest position at the time.
✅ Buffett maintained his shares of Greif Bros until 1956, achieving an annual return of 20%, including dividends.
🏭 Greif Bros was the largest producer of wooden barrels, facing a declining industry due to modern alternatives.
🛡️ The company successfully transitioned to new products under John Demsey's leadership, diversifying into steel drums, cartons, and wire products.
Cleveland Worsted Mills: Buffett’s Dividend Cut Surprise and Liquidation
🧵 In 1952, Buffett invested in Cleveland Worsted Mills, attracted by its low valuation and high dividend yield.
📉 The company unexpectedly cut its dividend, leading Buffett to investigate the situation.
💸 Cleveland Worsted Mills announced a liquidation plan in 1955, distributing $18.5 per share to shareholders by 1957.
📈 Despite the initial setback, shareholders who held until liquidation achieved a 21% internal rate of return.
Union Street Railway: Buffett Doubles Investment with Dividends
🚌 In 1953, Buffett invested in Union Street Railway, attracted by its substantial cash holdings.
💰 The company declared an extra dividend of $50 per share in 1955, which Buffett considered key to unlocking value.
📈 Union Street Railway reversed some losses and became profitable in 1955, generating $5.6 per share.
✅ Buffett nearly doubled his investment, achieving an annual return close to 30%.
