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LC

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Everything posted by LC

  1. Didn't Buffett say the preferred time to sell is never?
  2. I prefer their '06 cabernet. Sorry, couldn't help myself! But I believe the calculation is: Take year 2 revenue. This comprises Year 1 revenue + New Revenue - Lost customers. I believe management provides new revenue, therefore you can derive the amount of revenue attributed to the lost customers and therefore the percentage of non-recurring customers. Do this over the course of the data to get a general sense of retention rates.
  3. Can anyone point towards a primer on the history of CLOs you guys are referring to? I don't know much about this market but it sounds...entertaining :)
  4. The trade is very asymmetric, skewed to the upside when the stock is close to or at the repurchase limit. Time decay makes especially short term options more risky the higher above that threshold the stock is. Leaps, particularly deep ITM Leaps, are relatively less risky than other calls, especially when the stock is significantly above the repurchase limit. I too like Leaps for this trade: however why deep ITM? I would think the time horizon of the Leaps are adequate for managing the risk that the stock takes longer to rebound. I would think ATM or slightly OTM Leaps would provide more leverage on the upside while the one-two year time provides a cushion to protect the downside. They are more prone to systematic risk I suppose. What are your thoughts?
  5. I missed my opportunity to make this trade when BRK.B was trading in the 80s and settled for buying the common instead. I surely hope another chance arises!
  6. Whether I am looking to invest in a "quality" business, or I am examining a company which claims to compete in the marketplace on quality, I came across this as a checklist to define what exactly I mean by quality. http://lssacademy.com/2008/05/28/8-dimensions-of-quality/ Edit: I should say, it's nothing really groundbreaking but it does provide a precise breakdown of the factors which make up "quality".
  7. Excellent arguments gio. I am enjoying your posts more and more as I read them.
  8. I like Mark Cuban: not that I think he is brilliant, or that I agree with what he says, but I appreciate his conviction in his perspective and his outsider-looking-in sense of honesty and candor: http://blogmaverick.com/2013/01/10/the-stock-market-2/
  9. Meet the new boss, same as the old boss...
  10. My understanding is that many times a shipper will have excess capacity come available last minute (as a buyer pulls out) and has a lot of trouble selling it. Maximizing utilization is a big problem in the industry. Regarding EETCs I was not familiar until you brought it up, from the wiki article it seems relatively straightforward but I have no firsthand experience with them. This looks like a good resource which details their use regarding aircraft lease financing, however I would assume the same holds true for freight ships: https://www.tcw.com/News_and_Commentary/Market_Commentary/Insights/~/media/Downloads/Commentary/Fixed%20Income%20Research/Fixed%20Income%20Commentary/Other/030810_DFIrsch76_UpInTheAir.ashx
  11. Thanks for your perspective: the reason I ask is a relative of mine who has been an industry exec. for many years is helping roll out an electronic platform. His views are similar to yours. Namely that buyers/sellers are very "stuck in their ways", however electronic platforms offer much in terms of ease-of-use and efficiently managing various shipments. I'd be interested to know the name of the program you mention...I would not be surprised if it is the same one :) Thanks again and welcome to the board!
  12. Thanks for that link (quantumonline.com). That looks like an excellent resource to delve into senior securities.
  13. I'm just glad there is some sporadic Italian being spoken on this board :)
  14. Wow, very harsh words. Makes me really wonder WTF went on behind the scenes. Buffett has been behind-the-back vindictive before so I wouldn't be surprised if he did something that crossed the line for Sokol Could be. Or vice-versa. Buffett has always said that "you lose a shred of reputation for the firm...and I will be ruthless!" He cut Alice Schroeder out of the circle pretty quick over the book. If you piss him off or damage his/Berkshire's reputation, you are gone. While the SEC didn't find anything to charge Sokol with, I think everyone here thought it was unethical when the information came out. Cheers! Interesting information...where would you suggest one begin looking to find similar stories about Buffett's behind-the-scenes decisions? It is obvious that he painstakingly grooms his public image, but in private he is a different beast.
  15. Hey there, welcome to the board! While I have your attention, I'd love to draw on your experience in the container industry: What's your take on the container market? How deep/liquid is it? From an operations perspective, how efficient is it? Are buyers entrenched in certain purchasing habits or do they change frequently? How easily can sellers unload excess inventory? Do you think there is there room for consolidation in terms of marketplace structure? Do you envision electronic platforms as being successful in this market?
  16. LC

    Hartford

    I'm kicking myself for not picking up some HIG warrants 6 months ago. At the time I thought Hartford's future was a bit too uncertain.
  17. My point is that while a child may be gifted in certain tasks (math, writing, etc.) there may be other aspects which he is less gifted in (i.e. relationship building, social skills, teamwork etc.). There are quite a few academically gifted but socially awkward teenagers out there, at least there was when I was in middle/high school.
  18. I don't know his history, but Pabrai funds has been around since '99 and currently has 6 disclosed positions. No idea if he always held such a concentrated portfolio, but that may be a good place to start looking.
  19. Fair point. Although I think in terms of the grand scheme of things, the "answers" will win out as people realize they must either adapt or be made irrelevant. Societies can fend off innovation for only so long.
  20. I disagree. Keeping the "gifted" kids together with the rest of the class not only keeps them grounded and teaches them patience, it allows them to develop other skills such as relationship building, teaching other students, and communication skills.
  21. Up about 17% for the year. INTCs drop caused the largest loss, BAC WS-A caused the largest gains. Hopefully next year I can learn from the wisdom of my fellow board members and not repeat the same mistakes I made, while compounding on the opportunities presented!
  22. You're showing your youth. A gentlemanly investor always discusses cash flows before investigating assets on the balance sheet :)
  23. My father married an assertive strong-willed woman and I did the same. They are both Amazon women. I will never be free. I have money but I have no real decision making power. +1 Hah, to quote Wash from Firefly, "Have you ever been with a warrior woman?"
  24. Yes! And from a more practical perspective, it is brilliant: Take health/life insurance: you receive constant premiums over the course of the insured person's life, and then a payout occurs when a major health issue (or death) happens. Now, you match those cash inflows by reinvesting in that person: namely, by selling them the power/heat/water during the course of their life!
  25. Ohhh, so it was all just to give you the opportunity to get in? Well good, now that you have made your purchase it is free to increase again. I think he was saying that his purchase caused the price fell, i.e. everything he touches turns to....coal? I think every investor has felt this way at some point! Just a little self-deprecating humor :)
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