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EliG

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Posts posted by EliG

    Chuck Akre interview on Wealthtrack

    in General Discussion

    Posted

    Great interview. Thanks for posting.

     

    Side question: Does anyone have Akre track record, going as far back as possible? Thanks.

     

    http://www.marketwatch.com/story/top-manager-quits-mutual-fund-2009-08-05

     

    13% annualized from Dec 1996 to Aug 2009 as a manager of FBR Focus Fund. The end date is not far from the bottom of the crisis. I would venture a guess that he was averaging better than 15% before the crisis.

     

     

     

     

     

     

    Why are Russian stocks so cheap?

    in General Discussion

    Posted

    Russia Urges Companies to Delist Abroad

    http://www.bloomberg.com/news/2014-04-08/russia-asks-companies-to-delist-from-bourses-abroad-for-security.html

     

    Russia urged companies to delist their shares from overseas stock exchanges and trade in Moscow in an effort to safeguard them as international sanctions mount against the country after its takeover of Crimea.

     

    “This is a question of economic security,” First Deputy Prime Minister Igor Shuvalov told reporters after a government meeting near Moscow today. Speaking later in a telephone interview, he said the move isn’t mandatory and that companies should make independent decisions.

     

    ...

     

    With foreign investors holding 70 percent of Russia’s stock free-float, a move away from Western markets would stoke a “further selloff,” according to Elena Loven, who helps manage more than 1 billion euros ($1.4 billion) in Russian stocks at Swedbank Robur in Stockholm.

     

    Can a Woman make you a Millionaire???

    in General Discussion

    Posted

    Yeah, it's sexist. Also banal. Yawn.

     

    We are a two income family. We live on half of my income. We save & invest the other half and 100% of my wife's salary.

     

    My wife's best friend is going through an acrimonious divorce. Barring a miracle, she will be on the hook to pay spousal support to her useless bum of a husband.

     

     

     

     

    Aker Philadelphia Shipyard - It was a 50 bagger in less than 2 years

    in General Discussion

    Posted

    Anyone else have any examples of 10+ baggers with say 5 years with what the cause was.

     

    AutoCanada (ACQ.TO) 13x in 4 years. From $4 in 2010 to $55 yesterday.

     

    ACQ is the only publicly traded auto dealership group in Canada. They are riding the wave of dealer consolidation. Mom and pop dealers are selling and retiring. ACQ acquired 7 dealers in 2013. They expect to add another 10 to 12 in the next 24 months.

    Avoiding Capital Gains Tax

    in General Discussion

    Posted

    To avoid the tax man long term I have stopped contributing to my RRSP.  As it is, with a 15% return over the next 20 years I will have nearly 3 million, which will become fully taxable income at that time.  This is the result of the experiences of retirees who are paying alot of taxes.  Granitepost on this board first pointed this out to me.  RRSPs are a marketing ploy of the investment industry.

     

    I disagree.

     

    I'm in the 43% marginal bracket. Dear wife is in the 35%. We get a tax deduction on the RRSP contributions. Our marginal rates on withdrawals will be lower than our current rates. The difference in the marginal rates isn't the only benefit. A few decades of tax free compounding is worth a lot.

     

    Here's another way to look at it: An RRSP is a leveraged investment where the government supplies an interest-free loan in the form of the tax deduction.

    Does the rise of passive indexing create opportunities for stock picking?

    in General Discussion

    Posted

    True, but the very fact that money flows in and out of these 500 companies as a group means there is the potential for it to be systemic. "Investors" in indexes are buying without any reflection of the price they are paying, so there is a build of irrationality in the pricing.

     

    I would actually think of this manner of investing as a form of price leverage. When so many cubicle dwellers got skittish in 08/09, they indiscriminately sold all 500 of these companies. The swings are therefore more pronounced than if they assembled their basket of companies individually.

     

    I don't understand why you focus on 500 companies. Passive funds track all kinds of indexes. Yes, S&P 500 is the most popular index by far, but it's not the only index that attracts massive inflows.

     

    Largest ETFs by assets

    http://etfdb.com/compare/market-cap/

     

    SPY and IVV are #1 and #3. Both track S&P 500.

    QQQ is #4. It tracks NASDAQ.

    VTI is #6. It tracks broad US market (3000+ companies).

    IWM is #9. It tracks Russell 2000 (US small caps).

     

    WSJ P/E data:

     

    http://online.wsj.com/mdc/public/page/2_3021-peyield.html

     

    Russell 2000: 86.73

    S&P 500: 18.91

     

    Small-caps as a group are far more expensive than large caps.

    New to investing and looking for some direction

    in General Discussion

    Posted

    My advice would be to focus on your studies and, later, on building your career. You are in accounting. You should be able to make six digits. Try to get there as fast as you can and don't let investing be a distraction. The ROI of career building will easily beat anything you can do in the markets, given that you don't have much money to work with.

    Canadian manufacturing companies to buy?

    in General Discussion

    Posted

    Anyone have other names to add?

     

    Martinrea (MRE.TO). Trading at a deep discount to peers due to a pending lawsuit by a former board vice-chairman.

     

    RBC analyst report:

     

    Martinrea reports in CAD, though produces a substantial portion of its revenue from other currencies (mainly the USD and EUR). The company attempts to create natural hedges where possible through localized production, and it has hedging programs in place where this is not possible. At the end of 2012, the company estimated that a 10% change in the USD/CAD FX rate would affect earnings by 1%. However, MRE produced nearly 35% of its revenue from the US, and due to reporting in CAD, it would likely see a material translational benefit in revenue from a depreciating CAD.

     

     

    Checklist questions

    in General Discussion

    Posted

    This WSJ article is rather basic and doesn't go into much specifics, but it mentions a few actual questions.

     

    http://online.wsj.com/news/articles/SB10001424052702304202204579254793231267408

     

    Among the questions on Mr. Pabrai's list: How good is management at allocating capital? Is cash flow overstated because of an unsustainable recent boom? Does the company appeal to me because of personal preferences that might be clouding my judgment?

     

     

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