LC

Yeah, I wouldn't mind that. As long as it is used. I don't want one job post in there over two years! ;D Cheers! My gut tells me there's more job seekers than job posters on this board, but I would LOVE to be proven wrong!

20%

Well said, Hawk4value.

http://en.wikipedia.org/wiki/A_Short_History_of_Progress Has anyone seen this documentary? There were certainly some eerie moments (when the JPM Chase economist divulged his job was to calculate the future earnings of third-world countries, and it was JPM's goal to match those earnings to interest payments they would have to make to JPM). There were other bits related to the IMF etc in the same vein as Confessions of an Economic Hitman. But I think the main point was summed up by the line, "Our society expects economic growth to continue indefinitely, but this is strictly impossible on a planet with finite resources" (paraphrase). I assume we're all to an extent capitalist/profit-motivated here, so I find exposing myself to those who make arguments against capitalism-as-we-know-it can be an enlightening discussion.

I can't believe I actually know what you are referring to. They don't make them like Jean Claude Van Damme anymore. Don't mess with me, I'm a Kumite champion.

What do use to get those types of alerts?

Hah! If I were to stare myself in the mirror and ask why I like LEAPs more than almost any other instrument, this would be it. The only exception would be warrants, although it's a close tie given the leverage LEAPs provide.

If I am understanding this correctly, you're saying the IV of the OTM calls has more upside than ATM/ITM calls of the same date/strike? How far OTM did you go if the strike is only 1 month out? Or are you planning on continuously rolling contracts over on a monthly basis as long as nothing systematic happens in the market? If not, why not just purchase 2015 LEAP OTM calls?

DVA is also a hedge for BRK's large KO exposure.

As the recent article regarding Klarman showed, purchasing Madoff claims was very profitable :)

http://www.reddit.com/r/EntrepreneurRideAlong/ This subreddit is a "ride along" with a entrepreneur who started a maid business in DC metro area. Turns out he copied the idea (the idea being a maid service optimized to sell/function on the web) from another guy, but his experience is very valuable to learn from.

Didn't Buffett say the preferred time to sell is never?

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.

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 :)

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?

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!

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".

Excellent arguments gio. I am enjoying your posts more and more as I read them.

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/

Meet the new boss, same as the old boss...

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

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!

Thanks for that link (quantumonline.com). That looks like an excellent resource to delve into senior securities.

I'm just glad there is some sporadic Italian being spoken on this board :)

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.