mysticdrew
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Posts posted by mysticdrew
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Thanks for posting!
Regarding AIG:
This doesn't include any expectation of the stock returning to a mid-single-digit multiple of book value, a level at which the company has traded at in the past.A bit aggressive, no? I take it this is the author's commentary and not anything B2 would discuss.
I agree--I'm not sure we get those book multiples given how much simpler/smaller AIG is/will be.
Agreed it is probably aggressive from a valuation and margin of safety investing standpoint... but then again who's to say it won't become overvalued one day at multiples to book. This is Mr. Market we are talking about and it tends to go in extremes in both ways.
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Ericopoly, one thing I don't understand - you say you are not good at analyzing balance sheets, but you compensate for this weakness by investing alongside great investors who are. So you read Berkowitz' investment thesis for BAC, decide that you agree with him and buy the stock- only problem is, if I remember right Berkowitz only had about 5% or so of his fund in it, but you went all in. I would think that if you weren't personally able to analyze it you wouldn't want to bet too much bigger than the person you are coattailing (no offense, I only use the term because you have used it before to describe yourself).
I don't think Eric's strategy is to mimic Berkowitz. He obviously has a different risk tolerance/ strategy. I think it's more like a screen... BAC passes the "balance sheet sniff test" and from there it's his own strategy going forward based on what he thinks of the stock.
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Currently at 59%.
Unbelievable! Completely out of my league! I bow to you, racemize. Keep on doing your wonderful job!
giofranchi
I'm fairly certain it will never happen again (assuming it even holds!). I'm hoping to modestly outperform the S&P going forward.
Sounding like a young WEB in his partnership letters!
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The program looks like it does some great work. I do have a question though... the program helps pay for tutoring to help prepare for the entrance exam but once the students do well on the test and get accepted, how are they expected to pay for the university education?
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Would like to point out that working in different industries and understanding how things work provides alot more value then anything you read in a magazine, message board, or book. I've done the same kind of work in real estate, banking, healthcare, and money management. The k owlege gained regarding the operations of those industries and how businesses work has provided invaluable insight in framing a company when looking at something for a possible investment. This is knowledge you gain on a daily basis and the best thing is they pay you while gaining this knowledge.
I completely agree BUT I'm not going to change jobs/careers/industries frequently for the sake of learning to become a better investor.
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Interesting view... but I'm not so sure the others (myspace, friendster, etc) failed because they became too big. If anything they didn't get enough of a network effect the point where they p enough people who were still not on social media to go onto the new thing cool thing (myspace to facebook). I guess friendster to an extent was "too big" but not in terms of network effect but because they grew too fast and their infrastructure didn't keep up making people spend 20 min just trying to login to their profile.
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Do you guys count reading forums posts here, value investing blogs, articles at gurufocus, etc as "reading" ?
Where would you keep your cash?
in General Discussion
Posted
Probably not what you're looking for.. but I'd stick most of it in equities.... unless you're almost retired.