Behavior Finance I - Concepts
Considers the psychological influences and motivations of the financial decisions of the individuals.
Report 43
AmBev
Describes and updates the fundamentals of our investment in Ambev.
Report 42
Stock Options - II
Analyses the reasons for the excesses of the stock option plans in US corporations, suggesting the use of restricted shares as a market pay method. Describes and updates the fundamentals of our investment case in Caemi.
Report 41
Stock options - I
Presents the main concepts of stock option plans, analysing this pay method in the light of the Brazilian capital market peculiarities. Also comments the success and the importance of the IPO of Natura.
Report 40
Remuneration Systems
Examines the remuneration systems of the companies, presenting a number of pay methods. Also comments the main fundamentals of our investment case in Ambev.
Report 39
Ten years
Ludic license for celebration: By the time of the tenth anniversary of Dynamo Cougar, we submit Dynamo to its own criteria of investment analysis.
Report 38
Charlie Munger’s Mental Models
Describes the main features of the sophisticated mental and analytical device developed by Charlie Munger, employed in the process of selecting Berkshire Hathaway investments.
Report 37
Being Transparent
Discusses the topic of transparency of companies in the context of the economy, corporate governance, and the regulatory environment. Also analyzes the basis of the investment in Caemi.
Report 36
After the tag, along should come investors
Discusses the importance of tag along as an alignment of interests tool between shareholders, recommending it as a criteria of resources allocation for investors. Also comments on Warren Buffett’s vision of corporate governance of boards of directors,
as stated in the Berkshire Hathaway annual report.
Report 35
On Boards of directors and board members
Analyzes the different aspects of the composition of boards of directors and the performance of their members, as elements that establish the governance of companies.
Report 34
From Arbitrariness to Arbitration
Taking the opportunity of the installation of the BOVESPA Arbitrage Chambre, discusses the superiority of the arbitrage judgement over conventional Justice in settling corporate conflict.
Report 33
About Swindlers and Swindlers
Discusses the practice of loan agreements between listed companies and their controlling shareholders and the implication of this practice in the inequitable distribution of value among shareholders.
Report 32
The new Corporation Law: advances, absences, and problems
Technical comments on and criticisms of the reform of Brazilian Corporation Legislation,
in the economic context of capital market evolution.
Report 31
Forget the illiquidity premium; long may live the CDI
(Brazilian interest rate)
Explanation of the excessive contempt for the non-liquidity premium in the Brazilian market, as due to a high opportunity cost of capital in an environment of asset administration with the exclusive CDI benchmark.
Report 30
Dispersion of Capital Ownership
Towards a more dispersed ownership and its benefits of permitting better share pricing
and better governance conditions in companies.
Report 29
Tag-Along: a real case
Discusses the important issue of tag-along rights for minority shareholders,
based on the description of a real legal decision case.
Report 28
De-listings: Markets, Monopolies and Regulation
Analyzes the matter of public companies going private, based on market experiences
and also on recent specific regulation. (CVM Instructions 229, 299, and 345).
Report 27
The false dilemma
Discusses the false dilemma between greater protection versus extinction of the local capital market, in discussing the draft bill for the new Corporate Law. As reference, presents theoretical and empirical evidence that the more regulated markets are the more developed ones.
Report 26
Controlling premiums in Brazil: Why, How, and to Whom?
Explains the market distortions of control premiums in Brazil as a consequence of the imbalance of power in companies, based on the concentrated capital structure and on the illegal lack of support for the non-controlling shareholder. Also describes the corporate restructuring of Ultrapar and the important decision to extend tag-along rights to all shareholders.
Report 25
The Prisoner’s Dilemma and Brazilian Corporate Law
Describes the position of the minority shareholder in public offers, as a collective action problem. Also includes a number of recommendations for the amendments to the Corporation Law.
Report 24
Fiscal Board
About the Fiscal Board: its attributions, responsibilities, and its importance
as an effective corporate governance tool.
