@lost if I can chime in here in relation to below.
In terms of Barren Joey and the Mexican Takeaway, how does this follow rule #2's circle of competence? These side businesses are a long term miss-step to Magellan's core circle of competence of Funds Management.
Why does Douglass put these investing tips out there when he doesn't follow the majority of them? Is it more about making current retail investors comfortable, talk the investing game, but unfortunately not following them (happy to be proven wrong).I think its absolutely in their circle of competence. Both Hamish Douglass and Chris Mackay (Magellan founders) were highly rated investment bankers before they started Magellan. Therefore, my view is they have a deep understanding on the business model but more importantly the contacts within the industry.
In terms of G&G investment, as Hamish mentioned on the annual report telecast, they have a long standing investment with YUM brands over a ten year period, thus they have deep knowledge in relation to quick service restaurants. Whilst, I dont see the major attraction with G&G, I do believe its in their circle of competence and same with Barren Joey.
In terms of Hamish, one thing I do like about him is that he took ownership for the mistakes in the last 12 months. I think that just speaks of the quality of the man and personally I think he has runs on the board over a long period of time and this is just a blip on the radar when you consider the long term investment timeline.
(20min delay)