DanielGMask

I totally agree with this statement.

I also think he is more bearish than usual. I’ll add that he stated that it’s a mistake to see the 125B in cash as 40% of funds, since even though we have 180B invested in public entities, there’s more invested in wholly owned businesses.

Seems dangerous! I live in Mexico and we are about to elect a new president and part of congress. The candidate that’s leading (by a lot!) is clearly socialist and against market systems. This doesn’t mean that if he wins he is going to nationalize private companies or move against industry, nor that congress will approve such decisions, but he may control an important part of congress and indeed make some moves against free markets. The peso is reflecting some of these fears and if I were to bet (I’m not), I would bet against the peso! I base my investment decisions on facts, not on news or emotions. But hey, that makes a market. Maybe i am wrong. Currency speculation is precisely that, speculation. And facts tend to be deceiving when dealing in an speculating environment, but seems you are comfortable and convinced of what you are doing. I was just trying to point you in the direction of some “facts” you consider news or emotions, so be my guest! Still think the Mexican peso was undervalued?

Thanks for such a good explanation.

I certainly don't think so! A 9.5% equivalent to yearly interest rate is very high for current market rates. Plus the fact that -as I understand- the Holders have the right to receive dividends as if their preferreds were already converted into common. I'm not familiar with preferred offerings and that is why I asked a few questions, unfortunately nobody answered them.

CAKE (The Cheesecake Factory) just entered into a Subscription Agreement to sell 200,000 shares of Series A Convertible Preferred Stock, par value $0.01 per share, for an aggregate purchase price of $200 million. The preferreds have the right to receive dividends at a 9.5% annual rate. The Holders are also entitled to participate in dividends declared or paid on the Common Stock on an as-converted basis. And each Holder will have the right, at its option, to convert its Convertible Preferred Stock, in whole or in part, into fully paid and non-assessable shares of Common Stock at a conversion price equal to $22.23 per share. Here is the link to the filing: http://d18rn0p25nwr6d.cloudfront.net/CIK-0000887596/87d4687b-c18d-4743-b570-64048d3fa2c7.pdf So, I have a few questions since I'm not familiar with preferred offerings. 1. This will be equal to borrowing money at a 9.5% interest rate. Why issuing preferred shares instead of borrowing? 2. This "The Holders are also entitled to participate in dividends declared or paid on the Common Stock on an as-converted basis." means that the Holders have the right to receive their 9.5% interest plus dividends as a common shareholder? 3. How does the conversion works? They are issuing 200,000 preferred shares ($1,000 dollars per preferred) for 200 million dollars. The conversion price is $22.23. Does that means that the result of 200 million divided by $22.23 is the number of common they'll get? 4. If they pay the principal amount for the preferreds the conversion expires or no matter what, the Holders have the right to convert? Thx in advance.

I don’t get why people like Lagavulin. I had one bottle. My friend said it tastes like old socks. Lol I do like it and drink it often, though my drink of choice is JW Blue label.

Avg daily volume is 80M+ on the As and 800M on the Bs. Why would you call?

With gusto!

Current price is about 35 times earnings and cash flow. Net debt is around 3 times net earnings!

Attached! Baupost_2019_Letter.pdf

Top 100 Hot Podcast Episodes of 2019 https://blog.breaker.audio/top-100-hot-podcast-episodes-of-2019-79360a342b63

3-4% as a percentage of sales is insanely low! If your restaurant is located at a good location (indicative of good sales) rent is going to be around 10-15%, and depending on a few factors it may even be higher. Just take a look at the 10-k's of companies like CAKE, CMG and the like and you'll find that they spend about 25% of sales on rent+utilities+insurance+other.

“Once-in-a-lifetime” market extremes seem to occur once every decade or so - not often enough for an investor to build a career around capitalizing on them. But attempting to do so should be an important component of any investor’s approach. These words are from Howard Marks’ book The Most Important Thing. Buffett has already build the greatest investment career ever so he may end up surprising everybody, as usual!

https://buffett.cnbc.com/warren-buffett-archive/ Buffett in his own words The Warren Buffett Archive is the world’s largest collection of Buffett speaking about business, investing, money and life. - 26 full Berkshire Hathaway annual meetings, going back to 1994, with a highlight reel for each year - 130 hours of searchable video, synchronized to 2800 pages of transcripts - 500 video clips covering scores of subjects - CNBC interviews, a Buffett Timeline, and a Berkshire Portfolio Tracker