Lesson: Arcelor Mittal (MT), Posco (PKX)

Why did I buy MT ?

  • Cheap on EV/EBITDA. Started buying around $18 and kept it up until $10. Sold at $7.
  • Management owns ~ 40% shares.

I coat-tailed in PKX because of Mohnish and because this is also cheap over EV/EBITDA.

What I learned ?

  • Importance of the business. The iron & steel business is difficult, capital intensive and is a commodity business.
  • I did not want to sell PKX because I think it  has a competitive advantage. But, I feel uncomfortable because I have problems understanding the management culture especially after some of them are being sued.

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