BlackRock, Inc. First, let me place this disclaimer. The Great Global Recession of began around December and it took a sharper dive in September Recall that U. But, irrational bubble valuation forces caused the values of securities tied to U.

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BlackRock, Inc. First, let me place this disclaimer. The Great Global Recession of began around December and it took a sharper dive in September Recall that U. But, irrational bubble valuation forces caused the values of securities tied to U.

It was sparked by the outbreak of the U. The exact start and end-point for the recession greatly varied from country to country. Overall, it was the worst global recession since World War II. First, Apple designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players.

It sells a variety of related software, services, peripherals, and networking solutions. Apple sells its products through its online stores, retail stores, direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the Company sells a variety of third-party iPhone, iPad, Mac and iPod compatible products, including application software, and various accessories, through its online and retail stores.

The Asia-Pacific segment includes Australia and Asian countries. Next, Google Incorporated became the most popular internet search service. This global technology company is engaged in improving the ways people connect with information. It is now focused around the key areas of: search, advertising, operating systems and platforms, enterprise and hardware products.

It integrates innovative features into its search service and offer specialized search services to help users tailor their search. The Company, along with Open Handset Alliance has developed Android mobile software platform that any developer can use to create applications for mobile devices and any handset manufacturer can install on a device.

The Chrome browser runs on Windows, Mac, and Linux computers. Google TV is a platform that enables the consumers to experience television and the Internet on a single screen, with the ability to search and find the content they want to watch. It is based on the Android operating system and runs the Google Chrome browser.

The Company provides hosted, Web-based applications that people use on any device with a browser and an Internet connection. The Company also provides versions of its Google Maps Application Programming Interface API for businesses, as well as Google Earth Enterprise a behind-the-company-firewall software solution for imagery and data visualization.

Google competes with Yahoo! This next business was a bit of a surprise to me. The business of the Company is divided into two operating segments, the nitrogen segment and the phosphate segment. The Nitrogen segment includes the manufacture and sale of ammonia, urea, and UAN.

The Company operates seven nitrogen fertilizer production facilities in North America. CF Industries Holdings also exports nitrogen fertilizer products from its Donaldsonville, Louisiana manufacturing facilities and phosphate fertilizer products from its Florida phosphate operations through its Tampa port facility. Next, is Priceline. It shows us that customers took their bargain hunting practices online and found Priceline appealing. Priceline also operates a retail, price-disclosed hotel reservation service in the United States, which enables its customers to select the exact hotel they want to book.

Then, the price of the reservation is disclosed prior to booking. It offers such reservations through a merchant model, as well as through an agency model for hotel room night reservations sourced through Booking.

In May , it acquired the rentalcars. Priceline competes with both online and traditional sellers of the services it offers.

The market for the services it offers is intensely competitive, and current and new competitors can launch new sites at a relatively low cost.

However, over the past five years, customers found Priceline to be the appealing leader in this space. Next, Blackrock Incorporated made my list because it showed tremendous growth and profitability during this period. BlackRock along with its subsidiaries provides investment management and securities lending services to institutional clients and to individual investors through various investment vehicles.

Investment management services mainly consist of the management of fixed income, cash management and equity client accounts, the management of a number of open-end and closed-end mutual fund families, exchange traded funds and other non-U. BlackRock also provides market risk management, financial markets advisory and enterprise investment system services to a base of clients.

Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments, risk management and strategic planning and execution.

BlackRock operates in a global marketplace characterized by a high degree of market volatility and economic uncertainty, factors that can significantly affect earnings and stockholder returns in any given period. In addition, through BlackRock Solutions, the Company offers a broad spectrum of investment management and risk management products and services. Investment management offerings include single- and multi-asset class portfolios, which might be structured to focus on a particular investment style, capitalization range, region or market sector; credit or maturity profile; or liability structure.

BlackRock manages money for institutional and retail investors worldwide. Its client base is by both geography and client type. BlackRock clients include tax-exempt institutions, such as defined benefit and defined contribution pension plans, charities, foundations and endowments; official institutions, such as central banks, sovereign wealth funds, supranationals and other government entities; taxable institutions, including insurance companies, financial institutions, corporations and third party fund sponsors; and retail and high net worth investors.

Since customers found Blackrock managers to be able and trustworthy, it grew and profited mightily during this period.

Finally, I mention the giant energy company ExxonMobil. It is also the second largest publicly-traded corporation in the world by market cap and revenue. It also pays a 2. ExxonMobil will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions It has invested more in natural gas.

This field is located in the Persian Gulf state of Qatar. The North Field is expected to contain trillion feet of natural gas. ExxonMobil also agreed to a joint venture with Royal Dutch Shell and Chevron to construct a liquefied natural gas facility on Barrow Island off the coast of Australia.

XTO drove a surge in U. The company has been producing natural gas from the basin for more than 50 years and it has a reported estimate of 1. Its moves to secure future sources of oil, shale, and natural gas has secured more years of future cash flows for its shareholders. If we do a simple one or two stage DCF valuation estimation based on 10 to 15 years, a big piece of value may be missed. I argue that ExxonMobil has created a valuable advantage for itself and its shareholders that stretch the Excess Return Period yrs to at least 20 years, and maybe even more years.

So, here is my argument simplified. Did Buffett and Berkshire get a good bargain? However, I argue that, in view of long rage planning and investments in shale and natural gas, you may also conservatively extend the Excess Return Period yrs to 20 years. Over time, the world economies will demand more energy production. In summary, how do we tie all these good stories together? Think of the times when customers are pleased by the terms of supply and demand.

He is also the author of other books on investment decision framing and decision making.


Books by Bud Labitan

It is primarily about shaping ones thinking towards investing in the stock of a winning business. I have been thinking about these similarities for years, and have finally gathered my thoughts and organized them on paper. I write this from my point of view as a sports fan. Readers are entertained to think about their approach to finding a profitable value stock. Get Our Icahn eBook! Save it to your desktop, read it on your tablet or print it!


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