BlackBerry Limited (BB)

[GreenGenie]

MOCK INTERVIEW with Prime Cap Oddyssey Growth Fund

#1 Shareholder in BBRY:

http://www.nasdaq.com/symbol/bbry/institutional-holdings

#2 Answers taken verbatim from this article:

http://m.kiplinger.com/article/investing/T041-C009-S002-primecap-best-stock-pickers-youve-never-seen.html

#3 Fund's prospectus. BBRY is fifth largest holding:

http://primecap.com/media/pdfs/Aggressive_Growth_FS.pdf




This is not a real interview. However, the answers in quotation marks are VERBATIM quotes from Prime Cap. This is how these answers would most likely be answered based on the links provided.

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Q: So, who are you guys? You've been silently buying BBRY. You are now the #1 stockholder in BBRY, showing up Prem Watsa (#2 largest shareholder) by a huge margin. How come nobody has heard of you?

A: That's how we roll. We are like the Men in Black. We are "so under the radar, you can't even find our pictures." We "rarely talk to the press." Our receptionists have "been instructed not to pass along any calls or messages from reporters."

Q: So, why are you granting this interview with me?

A: Because you are MichaelRRRRRRR, The Green Genie, Contrarian Extraordinaire.

Q: Thank you. I try to be humble like you guys. So, I see on your prospectus that BBRY is your #5 largest holding. That is about as much faith as Prem Watsa, yet you own almost twice as much shares as he does now. You've been buying, buying and buying. You now own 76 million shares. Why, when you can see all these negative articles on Seeking Alpha? Even one author claimed he sold half of his shares in a rage of capitulation.

A: Because that's what we do. We "are buying stocks that others are selling."

Q: I see. So, you are saying these guys are wrong?

A: Look, We "Invest in growing companies that trade at bargain prices."

Q: I get that. So like Warren Buffett, and myself, you like stocks that go down, not up, as a net buyer. What makes BBRY a bargain?

A: We "look for a catalyst—say, the introduction of a new product, arrival of new executives or a restructuring—that we think will push a stock higher over the next three to five year."

Q: That is exactly what I've been saying. Your investment thesis is to look out 3 to 5 years in the future, not, say, 5 weeks? We have lot in common. So you also see the green balloon within.

A: That is correct. Our "turnover ratio of 5%, which means stocks stay in the fund for 20 years, on average. By contrast, the typical large-company fund has a turnover ratio of 62%, suggesting an average holding period of 19 months."

Q: Yeah, that does make it easier to take advantage of Mr. Market's mood swings. But how are you successfully navigating the pitfalls of group think? Like on Seeking Alpha, where 95% of the authors are engaging in a behavior psychologists call "confirmation bias," leading to bad decision making?

A: Simple. Our funds are "not run by consensus. In fact, Primecap AVOIDS Group Think. Each portfolio manager runs his portfolio independently.

Q: So, even when Priv sales failed to meet expectations last quarter and all the selling and whining ensued, didn't you say, "Oh, you guys have a point?"

A: Look, we don't talk with our mouths. We talk with our actions. We let them do the talking, we do the buying.

Q: And those actions would be what?

A: Well, just look at last quarter for example. We bought an additional 1.4 million shares. We will report our new actions in a few weeks, but due to SEC regulations, we can't disclose that at this time.

Q: Interesting. Well, your results speak for themselves. No further questions. Thank you very much.