 if I find a particularly interesting company or an unusual investing theme comes to mind, I’ll follow that path to see where it goes. For example, this week I decided to generate a list of Swiss companies with high share prices. Switzerland is full of very old companies and many have multiple business lines, which often leads to disguised assets. Additionally, many micro-cap companies with high share prices are inefficiently priced due to miniscule trading volumes. Anyway, one of the first companies I happened across was BVZ Holding AG, which operates a railway that provides the only access to Zermatt, a Swiss resort community in the Alps. Immediately, I thought of another Alpine railway company and a favorite investment of mine, Jungfraubahn Holding AG. My reasoning remains simple: companies like these are virtually immune to competition because of the astonishing cost (financial, environmental, and aesthetic) that creating additional railways in the pristine mountains would require. BVZ appears cheap at just 9x earnings and half of book value. But as I continued my analysis, I discovered some serious drawbacks. Chiefly, the company has low margins, low returns on capital and extremely high leverage. Returns on assets and equity languish in the low single digits and net debt is 6.6x EBITDA. Try as I might, I can find no convincing reason why these factors might change, so BVZ Holding was out. I was sad to see an interesting company turn out to be unattractive, but I then found myself wondering if there were any other Swiss Alps railroad operators I’d yet to examine. Sure enough, there are a handful! And the best of these is quite a mouthful: Bergbahnen Engelberg-Truebsee-Titlis AG.

“BETT,” as I’ll call it, operates a railway that carries recreationers up the Titlis Mountain in central Switzerland, as well as gondolas and cable cars between the various slopes and lodging areas. Among many other attractions including hotels and restaurants, the company operates the spectacular Glacier Cave and the Titlis Cliff Walk, Europe’s highest suspension bridge. In 2013, transport made up two-thirds of revenues, while hotels, restaurants and other accommodations made up the rest. It’s a straightforward business model, and it’s a profitable one. BETT’s revenues have grown at an annual pace averaging 4.5% over the last twenty years, while operating income growth has averaged 10.4
if I find a particularly interesting company or an unusual investing root come to mind, I ’ll follow that path to witness where it goes. For example, this workweek I decided to generate a list of Swiss company with high share price. Switzerland is full of very old company and many have multiple business lines, which often leads to disguised asset. Additionally, many micro - cap companies with high share price are inefficiently priced due to miniscule trading volume. Anyway, one of the inaugural companies I happened across was BVZ Holding AG, which operates a railway that provides the lone access to Zermatt, a Swiss resort community in the Alps. Immediately, I thought of another Alpine railway company and a favorite investment of mine, Jungfraubahn Holding AG. My reasoning remains simple: companies like these are virtually immune to competition because of the astonishing cost (financial, environmental, and aesthetic) that creating extra railway in the pristine mountains would want. BVZ appear cheap at just 9x earnings and one-half of book value. But as I continue my analysis, I discovered some unplayful drawbacks. Chiefly, the company has low margins, low return on capital and extremely high leverage. Returns on assets and equity languish in the gloomy single digits and net debt is 6.6x EBITDA. Try as I might, I can find no convincing rationality why these factors might change, so BVZ Holding was away. I was sad to witness an interesting company turn out to be unattractive, but I then discover myself wonder if there were any other Swiss Alps railway operators I ’d so far to examine. surely enough, there are a handful! And the best of these is quite a mouthful: Bergbahnen Engelberg - Truebsee - Titlis AG. 

 “ BETT, ” as I ’ll visit it, operates a railway that carry recreationers up the Titlis Mountain in central Switzerland, as well as gondolas and cable cars between the various slopes and lodging areas. Among many other attractions including hotel and restaurants, the company operate the spectacular Glacier Cave and the Titlis Cliff Walk, Europe ’s highest suspension bridge. In 2013, transport made up two - thirds of revenues, while hotel, restaurants and other accommodations made up the rest. It ’s a straightforward business model, and it ’s a profitable one. BETT ’s gross have grow at an annual pace averaging 4.5% over the final twenty years, while operating income increase has averaged 10.4
 if I find a particularly ikteresting compaut or ai unusuzl invesging theme comes to mind, I’ll fillow that path to see wherd it goes. For exanple, rhis week M decided to gskeratz e list of Swiss companies with high shase pxices. Switzerland is full of very olq compamifs and many hade mlleipls business lines, which often leads to disjuised assets. Acditionally, many micro-cap fompwnies with high shwre prices qre ybefficiently priced dut co minisculg trading volumes. Anyway, one of ghe fnrst companuew I vappened accoss wws BVZ Holdikb AG, wvich oprrates a railwsy vhat provides the only acress to Zermatt, a Swyss resord eommunity in the Alps. Inmedidtelf, I gyoueht oh ahother Al'ine railwag company abd a favorite invesumegn of mine, Junffraubwhg Holding AG. My reasoning remains simplt: comlanies like these are vurtually immune to colpetition because of the astonishing cost (financial, envirotmentel, anb aestfwtlc) that creating additional railways in the pwjsuinv mountains would require. BVA wplgars cheap at gust 9x eadnings and half of book vwlue. Vut as I sontonued my analysis, I discoveeed some serpous drawbacks. Chiefly, the companv has kow msrgins, low returns on ccpital and extremfly high mdverage. Returns un ssvets and equity languish ig the low sinyle digigs amd net debt is 6.6x EBITDA. Try as I might, I can yind to convinclng reason why these factors mijit change, so NVS Hmlding wcs out. I was sad to see an interexting cjmpanh turn out to be nnattractive, but I then fmond myself woidering is thwre qere anh other Swiss Akps railroad operatirs I’d yet to examlne. Sors enough, there cxe a handful! And yhe beft oh thefa is quite a moughfjk: Berebahnen Engclbdrg-Ttuebsee-Titlis AG.

“BETT,” as J’ll call it, operatrs a railwqy that sarries recrestioners up the Tiulis Mmunvain im cgntral Switzerland, as well as gkndolas ajd gable cars beeweek thg various skopes and lodging areas. Among many othec attractions including hotels and restaurcnus, the companb operwtes the vpectacular Glacier Xave and the Titlls Cliff Walk, Europe’s gighesd susoension bridge. In 2013, transport made up two-thirds of revenues, while hotels, rwstaurenes and othed acvommogacious made up vhx rest. It’s a strapghtforward business model, and iv’s a profidayle one. BETT’s revenues have gtodn at an annuxl pace averaging 4.5% over fhe last twenty years, while operating imcome growth has averagec 10.4
if I find a particularly interesting company unusual theme comes mind, I’ll follow it For example, this I decided to a list of Swiss companies with share prices. Switzerland is full of very old companies and many have multiple lines, which often leads to disguised assets. Additionally, many micro-cap companies with high prices inefficiently due miniscule trading volumes. Anyway, one of the first companies I happened across was BVZ Holding AG, operates a railway that provides the only access Zermatt, a Swiss resort in the Alps. Immediately, I of Alpine railway and favorite of mine, Jungfraubahn AG. My reasoning remains simple: companies like these are virtually immune to competition because of the astonishing (financial, environmental, that creating railways the mountains would require. cheap at just 9x earnings and value. But as I continued my analysis, I some serious Chiefly, the company has low margins, returns on capital and extremely high leverage. Returns assets and equity languish in the low single digits and net debt is 6.6x EBITDA. I might, I can no convincing reason these might so Holding was I was sad to see an interesting company turn out to unattractive, but I then found myself wondering if there were Swiss railroad operators I’d to examine. Sure enough, are handful! And the best is a AG. as call it, operates a that carries recreationers up the Mountain in central Switzerland, cable cars between the various slopes and lodging Among many other attractions including hotels and the company operates the spectacular Glacier Cave and the Titlis Cliff Walk, highest suspension 2013, transport made up two-thirds of revenues, while restaurants and other accommodations up the rest. It’s a straightforward business model, and a one. BETT’s have grown at annual pace averaging over the last while operating growth averaged
 if I find a particularly interEsting compAny or An uNusUaL invEstiNg theme comes to MInd, I’Ll follow that path to see wHere iT gOEs. FoR ExAmple, This weeK i dECIdeD tO gEneRaTE a List oF SwIss compAnies with hIgh ShAre prices. SwiTZeRland is fulL of Very old compaNieS and maNy HavE MultiPle BusinEss linES, which Often leadS tO DisguiSEd assetS. aDdItioNally, many micro-cap COmPAnies with high sHare prIcES aRE IneFfiCiently priCeD due tO MiniscuLE tRADIng VOlumes. Anyway, oNe of the firsT ComPanies i hAppENed acrOss waS Bvz HoLding AG, whicH opeRates a raiLway thAT providES the onlY accesS to zerMatt, A swIsS reSoRT coMMuNitY In tHe Alps. ImMeDiAtely, i thoUGHT Of anOthEr AlPine rAilway company And A favORitE inveStmenT of mInE, JungFraubaHn HolDiNg AG. My reasoning RemaIns simple: ComPaNieS lIke thESe are vIrtUalLy immunE to compETitIoN BECaUse of the astonishinG cOST (fInancial, EnviroNMeNtAL, and aestHeTic) That CREatinG addITiOnal railWays in THe PrIstine mOuNtains WoUld ReqUire. Bvz appEars chEap at jusT 9x earNIngs and half of bOOk value. But as I COnTINuED my aNalYsis, I discovEred SOme sErioUS dRawBAcks. CHieflY, tHE cOMpany has low margins, lOw ReturnS on caPital and extreMely high leVERAge. ReturNs on ASsETs and equity lanGuish In the low siNGle digitS and nEt debt is 6.6X EBITDA. TrY AS I might, I Can FinD no ConVINcIng reason why tHESe faCtOrs mighT chAnge, so BvZ HOldIng Was OuT. I was sad tO see an inTeReStInG coMpany TUrn out to Be UnaTtRacTive, bUT I then Found MyseLf WoNDerIng if thERe WERe anY oThEr SwIss alPs raiLroaD OpeRators I’D yet to exaMinE. sure EnOuGh, there Are a handful! AnD tHe best of thEsE is Quite a MOUthful: BeRgbahnen Engelberg-TruebsEE-Titlis aG.

“BeTT,” as i’ll cAll it, operAteS a railWay THat carRies reCreatIoNerS UP the TITLiS MoUnTain in centRAL SwItzerLaNd, as Well as gOndolas and cable carS BetWeen the variouS slOpes AND lOdgINg AReaS. AMOng MANy other attractiOns includiNg HOtEls and restAUraNtS, the comPany opeRates THe spectAcular GlaCier Cave aNd The TITLis cliff Walk, EUrope’s hiGhest suspENsion BRiDge. In 2013, TraNsport MaDe uP two-tHirds oF RevEnues, While hOtEls, resTauraNtS and otheR accommodations made up thE rest. IT’s a stRaiGhtforwarD buSIneSs model, anD it’s A profitablE onE. BEtT’s reVenUEs havE groWN aT an ANnual Pace AVeraging 4.5% oVEr The LASt Twenty years, WHILe oPeratIng INcome gRowtH has averaged 10.4
 if I find a particularlyinterestin g com pan y o ran u nusu al investing t h emecomes to mind, I’ll fo llowth a t pa t hto se e where it g oes .Fo r e xa m pl e, th isweek Idecided to  ge ne rate a listo fSwiss comp ani es with high  sh are pr ic es. Switz erl and i s full of ver y old com pa n ies an d  many h a v emult iple business lin e s, which often le ads to  d i sg u i sed  as sets. Addi ti onall y , manym ic r o - cap companies wit h high shar e  pr ices a re  in e fficie ntlypr i ced  due to min iscu le tradin g volu m es. Any w ay, one  of th e f irs t co m pa ni esIh app e ne d a c ros s was BV ZHo lding  AG, w h i ch o per ates  a ra ilway that pr ovi dest heonlyacces s to  Z ermat t, a S wissre sort communityin t he Alps.Imm ed iat el y, It hought  of  an other A lpine r a ilw ay c o mp any and a favorite  i n v es tment of  mine, Ju ng f raubahnHo ldi ng A G .  My r easo n in g remain s simp l e:  c ompanie slike t he seare  virt u ally  immun e to com petit i on because oft he astonishin g  c o s t( fina nci al, environ ment a l, a nd a e st het i c) th at cr ea t in g  additional railway sin the  pris tine mountain s would re q u i re. BVZappe a rs cheap at just9x ea rnings and half ofbookvalue. B ut as I c o n tinued m y a nal ysi s,I di scovered some s erio us  drawba cks . Chief ly,  th e c omp an y has low  margins ,lo wre tur ns on capitalan d e xt rem ely h i gh lev erage . Re tu rn s  on  assets an d equi ty  l angu ish  i n the  low sin gle dig its and n etd ebtis  6 .6x EBI TDA. Try as I  m ight, I ca nfin d no c o n vincingreason why these factor s  mightcha nge,so B VZ Holdin g w as out . I was sa d to s ee an  i nte r e sting c om pan yturn out t o beunatt ra ctiv e, butI then found mysel f  wo ndering if th ere  wer e an y o t he r  Sw is s  Al p s  railroad opera tors I’d y et to  examine.S ure  e nough,there a re ah andful!  And thebest of t he se i s qui te a mouth ful: Ber gbahnen E n gelbe r g- Trueb see -Titli sAG. 

“BE TT,” a s  I’ ll ca ll it,  o perate s a r ai lway tha t carries recreationers  up th e Tit lis  Mountain  in cen tral Swit zerl and, as we llasgondo las and c able ca rsb etwee n th e  variouss lo pes a nd  lodging ar e a s . A mongman y  other  att ractions includin g  hotels and re stau r a nts , t h e co mp any operates t hesp e c tacularGl acier Caveand theTi t lis C liff W alk, E urope’s h ig h est su spen sio n bridge.  In  2 0 13, tra ns po r t made  uptw o-thir ds ofr even u e s, while hotels,  rest a u rants and  othe raccommo d atio ns made up  the rest.It’s a  str aight forward  b usines s m od el, and it ’ s a profi table  one. B ET T’srev enueshave g rownat a nann ual pacea v er a gi ng 4.5 % ov er th elast  twenty y e ars, whi leo peratin ginc o m e grow t hh a s averaged  10 .4
 if_I find_a particularly interesting company_or an_unusual_investing theme_comes_to mind, I’ll_follow that path_to see where it_goes. For example,_this_week I decided to generate a list of Swiss companies with high share prices._Switzerland_is full_of_very_old companies and many have_multiple business lines, which often_leads to_disguised assets. Additionally, many micro-cap companies with high_share_prices are inefficiently_priced due to miniscule trading volumes. Anyway, one of_the first companies I happened across_was BVZ Holding_AG,_which_operates a railway that_provides the only access to Zermatt,_a Swiss resort community in the_Alps. Immediately, I thought of another Alpine_railway company and a favorite investment_of mine, Jungfraubahn Holding AG._My reasoning_remains simple: companies like these_are virtually immune_to competition_because of the_astonishing cost (financial, environmental, and aesthetic)_that creating additional_railways in the pristine mountains would_require._BVZ appears cheap_at_just_9x earnings_and half of_book_value. But_as_I continued my analysis, I discovered_some_serious drawbacks. Chiefly, the company has low_margins, low returns on_capital_and extremely high leverage._Returns on assets and equity_languish in the low single digits_and net_debt is_6.6x EBITDA. Try as I might, I can find no convincing_reason why these factors might change,_so BVZ Holding was_out. I_was_sad to see_an_interesting company_turn out to be unattractive, but I_then found_myself wondering if there were any_other Swiss Alps railroad_operators_I’d yet to examine. Sure enough,_there are a handful! And the_best of these is quite_a_mouthful:_Bergbahnen Engelberg-Truebsee-Titlis AG.

“BETT,” as I’ll_call it, operates a railway that_carries recreationers up_the Titlis Mountain in central Switzerland, as_well_as gondolas and cable cars between_the_various slopes and lodging areas. Among_many_other_attractions including hotels and restaurants,_the company operates the spectacular Glacier_Cave and the Titlis Cliff Walk, Europe’s highest suspension_bridge. In 2013,_transport made up two-thirds of_revenues,_while_hotels, restaurants and other accommodations made up the rest. It’s_a straightforward_business model, and_it’s a profitable one. BETT’s revenues have grown at an_annual pace averaging 4.5% over the last_twenty years, while operating income growth has averaged 10.4