26/09/2020
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As the first piece of writing in my new newsletter, I wanted to dive deeper into a famous, dividend paying stock, that has helped made Warren Buffet a celebrity in the finance world: Coca Cola [KO].
KO’s fantastic moat, nice balance sheet, and a big fat generous dividend… Just messing with you guys.
We are actually going to look into a more exotic, unpopular, and controversial company, that better reflects my personality as an investor: CoreCivic [CXW].
You may be asking, why CXW? The answer is simple: the controversial nature of CoreCivic's business (among other things, the management of private prisons and correctional facilities) together with the recent conversion from REIT to C-Corp, has created an incredible spread between the intrinsic value of the company’s real estate and business fundamentals compared to its enterprise value. And there is also a catalyst, the 2020 US presidential election, which has the potential to greatly reduce this spread.
Let’s dive deeper…