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LC

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Everything posted by LC

  1. Exactly. This is why WD-40 is an excellent example. Why would I ever bother doing any research or trying something new when it is in-expensive enough and it works? When my can goes empty I just buy another one the next time I'm at a home improvement store. I've had WDFC on my watch list for a while but haven't bought it. They also own 3-in-One Oil, which doesn't have the moat that WD-40 has, but is another well known brand and something cheap enough that you wouldn't bother buying the competitor. Is WD-40 a patented formula that can't be reproduced and sold under a generic store brand? If that's the case, long term, I would imagine that they'd have to lose out longer term to cheaper generic store versions. I've seen significant willingness within my network of people to switch the generic brands, whether its cereal or canned food at the grocery store, or the Walgreens-branded versions of common drugs like sudafed/zyrtec/advil. In all these cases, it's inexpensive items that are just being bought for slightly cheaper, but I have definitely noticed them taking up more shelf space at stores (as well as seen them more often at friends/family's homes). Depends on the strength of the brand. Hershey and Marlboro are still going strong. And it's cheap enough to warrant spending an extra buck for the peace of mind that it will work, that you know how to operate it, etc.
  2. Enjoy it Eric...surfing is awesome. My fiancee and I have given up on vacationing, we're in love with Costa Rica and go to explore and surf as much as possible. If you fall in love and want to vacation, check out playa guillones/nosara.
  3. IMHO totally depends on the business. For example, trulia burnt all their ebitda on marketing and their stock dropped 20%. Other companies with an entrenched position this would not be the case (ie major CPGs)
  4. 1% as well. Sanjeev, you're a good man and I love supporting folks that exhibit the characteristics that you embody. Pleasure to know you.
  5. IMHO, contrarian or not doesn't matter as long as your investment is yours alone and makes sense to you. I find myself reading less and less of blogs and forums and evaluating investments independently/in solitude. Maybe it's just the cold New York winters :)
  6. IMHO, the MC was abnormally low. And the debt was probably covered by the fixed assets, and they would have no problem making interest payments given their ten year performance. Even if business slowed down and they operated at break even levels, there was relatively little downside. Margin of safety was very wide. See any ideas similar to this around today? :)
  7. Just read through these, at the end, I would've thought an informed buyer would like to pay in the 300m350m range, yet mr market was selling it for 80m!
  8. My gut tells me...if we're arguing over 100K salary vs 200k salary vs possibility for 6 figures....well, then there are options. and one should be doing what you enjoy doing. i'd rather work at a fund for 100k/year than make 200k doing software dev...because i hate software dev and suck at it :)
  9. possibly some marijuana stock? ;D
  10. This was the case with FHCO last year. They received a large order and Poof, something like 8m of valuation allowances on their DTA were released and included in earnings.
  11. Thanks for posting.
  12. Defense wins championships
  13. What are your thoughts on a company like valeant, which is more like a royalty stream on already developed drugs?
  14. I certainly see the trend. Every personal finance blog/forum I've seen of late has the standard operating procedure of recommending passive indexing. Every time I am asked for advice I recommend three options: dedicating your time and energy to individual stock selection after reading the standard volume of value literature (a very unpopular option), investing with someone you know and trust, who has a track record of success and transparency (something not common), or vanguard index funds. My fear of the eventuality is that, people will make the smart choice initially. Put their money in SPY and forget about it. Until of course the next panic hits, the media blasts fear and emotion from the rooftops, and human nature takes over.
  15. I always buy used and American. Parts are available and cheap, and tons of resources are available to do regular maintenance yourself. One day I hope to move to somewhere with warm weather, buy an old ford or GM convertible, and fix it up. Fun, inexpensive, and a good value!
  16. I weight my portfolio by the relative percentage discount from intrinsic value.
  17. That sucks...seems like one of the downsides of such a protected industry. Don't worry, here in the US the banks will easily take your money, it just might take longer to get it back...
  18. I'd sell the pair of scissors because I have one at home that works perfectly well.
  19. Any update on the date?
  20. Thanks very much, cheers :)
  21. Does anyone know of public (free) tools to get a quick glance at the equity prices globally? Pretty much as a way to zone-in on countries where good prices might exist for stable businesses. TIA! LC
  22. But of course, a majority of that money is retirement/savings/pensions/401ks etc. So that money doesn't just all come out at once. In special circumstances (2008) it might, but over the long-term, those SPY positions are slowly sold off, transferred to bonds, etc. as people age, as the population bracket below them pours more into SPY to plan for their retirement. It's constantly rolling itself over with the population.
  23. add 6 zeros to the end of your numbers, make it a one-time game, and the majority of people's answers will change. as constructive said, you need the utility curve to really answer it.
  24. I always recommend the intelligent investor to people who ask me first. Then, if they come back for more, I go through the value classics. Some discount brokers will let you start with a few hundred bucks and charge 5/trade. So with 1000 bucks you can take a few positions to actually learn by doing. Good luck and welcome to the forum!
  25. Good topic. IMHO reality falls somewhere in the middle. The true greats don't get there doing something they can only tolerate. But, like you quote, for 99% it is not reality. Invert: under what circumstances would you do something you truly hated? I've worked in despicable environments before, I would never do so again, I'd rather starve and go homeless. I think for most people, there is a middle path.
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