CBA PERLS VI: Of Wolf and sheep

Key Points CommBank is trolling for cheap equity funding Fine print ensures equity-like downside risk Return doesn’t offer adequate compensation In a recent memo, Oaktree Capital chairman Howard Marks made the point that ‘for one side of a transaction to turn out to be a major success, the other side has to have been a big mistake … Win-win transactions are much less common than win/lose transactions.’ Successful investing is all about profiting from the mistakes of others. Ideally, one stumbles across a high quality company that has a predictable and sound future but has been sold down by...

In a recent memo, Oaktree Capital chairman Howard Marks made the point that ‘for one side of a transaction to turn out to be a major success, the other side has to have been a big mistake … Win-win transactions are much less common than win/lose transactions.’

Successful investing is all about profiting from the mistakes of others. Ideally, one stumbles across a high quality company that has a predictable and sound future but has been sold down by emotional, naïve or unthinking investors.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles