frugalchief

The news certainly is concerning. On one hand I love the thesis and the odds of administrative reform into a utility/Moelis/etc. seem to get stronger as time goes on and news is released. On the other hand one of the largest players who is in on a major lawsuit has reduced his position. Perhaps it's redemptions (but he didn't reduce St. Joe's and he has bought other new stuff). Perhaps he thinks the time it takes to win is going to still be a few years (and he thinks St. Joe's and other new investments will appreciate in a shorter time period). Perhaps he has lost faith in his thesis. Perhaps he knows something from his lawyers that will be detrimental to his case. Berkowitz doesn't hold very many large positions, but he still does have a large position in the GSE's. Clearly St. Joe's is his favorite holding at the moment. Time will tell, but him selling this much is concerning. Probably redemptions Very obviously not due to redemptions. Berkowitz selling is a bad data point - I wouldn't try to rationalize this away He has plenty in cash equivalents to cover redemptions. It's a little concerning to me too as a FAIRX holder. Still around 20% of AUM is comforting right now. Regarding JOE, I think BB has the restrictions of insider ownership since he's Chairman? Correct me if I'm wrong. My first post on this thread, I'm long FNMAS only (right now)

Semi-annual report out - http://www.fairholmefundsinc.com/Reports/Funds2018SemiAnnual.pdf Sold completely out of SRG SHLD still same as quarterly filing Reduced Fannie/Freddie - only hold FMCKJ & FNMAS now JOE is 27% out portfolio Added AT&T, HRG Group & Spectrum Brand Holdings, Vista Outdoor and Vistra Energy. Large outflows continue

Quarterly filing out https://www.sec.gov/Archives/edgar/data/1096344/000119312518130957/d585240dnq.htm sold large chunk of SHLD, quite a bit of Fannie/Freddie pref (hopefully locking in gains at beginning of year). Added Vista Energy (1% position). Cash and equivalents up about 4%. Net assets down about $300mm.

2017 Annual out - http://www.fairholmefundsinc.com/Reports/Funds2017Annual.pdf

I vote outperformance once he kicks the losers out. https://www.sec.gov/Archives/edgar/data/1214344/000091957418000689/xslF345X03/p7807547.xml

Nobody answered here. I'm still interested. Did not yet have time to dig deeper myself, just read short blurbs. Jurgis, I've wasted my time researching and reading what Sham has done/written. Don't waste yours.

https://www.bloomberg.com/news/features/2017-12-13/hey-google-am-i-diversified-why-fidelity-fears-silicon-valley Millennial's would eat this up if Alexa makes it easy. We don't like meeting with advisors or spending time like that, so why not?! LOL :o

Q2 Results Out. News Release - http://pgntgroup.com/wp-content/uploads/2014/02/Press-Release-Q2-2017-FINAL.pdf Report - http://pgntgroup.com/wp-content/uploads/2014/02/2017-Q2-Final.pdf First full quarter with inclusion of SED Columbia. Selling for almost 1/3 BV. Anyone else watching this? Curious if anyone has attended the annual meeting before?

Do you have name, model etc? Please do tell if it's available. Thanks in advance. That's what I've been consistently hearing that the confusion between $200, and $1000 and $4,000 mattress is so great that it makes buying one a pain in the butt. Sure, I bought 2 of these: https://www.amazon.com/gp/product/B00GTCL3SQ/ref=oh_aui_search_detailpage?ie=UTF8&psc=1 I wanted to buy one of these but my wife wouldn't budge. So I am that shmuck that paid 4k for a tempurpedic at mattress firm. Has anyone here actually tested with lots of sleep this mattress v. tempur?

I've always taken it as: 4= BRK (WEB is the name it's under, since he is 'manager' of BRK) 11= NICO 8= GEICO etc. etc. For example (https://www.sec.gov/Archives/edgar/data/1067983/000095012316022377/xslForm13F_X01/form13fInfoTable.xml), American Airlines (first line) - is purely owned by BRK American Airlines (second line) - is owned by GEICO, through NICO (since NICO owns 100% of GEICO[??]), through BRK, since BRK is parent That's why on AMEX, you see two lines for 4,8,11 and 4,11. 4,11 is what NICO owns directly, while 4,8,11 is what GEICO owns directly. I could be wrong.... But let's use Biglari for example (https://www.sec.gov/Archives/edgar/data/1334429/000092189516006153/xslForm13F_X01/infotable.xml) 1=Sardar 2=Lion Fund 3=Lion Fund II The BH stock owned through the above entities is in on different lines (no entity owns each other, except Sardar is manager of Biglari Capital, which is GP to both Lion Funds). So the first line shows ownership by 1 (Biglari Capital....Sardar recently transfered all but 1 share of BH stock from his PA to BCC). Second line is owned through TLF. Third line is owned by TLF II. ???

Exactly what I was thinking...

More would help... It would be a Financial Advisor with Edward Jones. Not fancy compared to many hear. So yes, a lot of door knocking, smaller/retail clients. Many probably don't like that and aren't/have never been in that spot. But any more insight would help. Done a lot of my own research visiting firms and talking with FA's, etc. But this board is much more knowledgable I suspect.

I'm currently weighing options of getting out of real estate business and joining one of the large financial advising firms. I'm curious if anyone would layout how they got in the business, pros/cons, advice, etc.? What to do/not to do. Appreciate the input and advice.

INTJ I'll have to take that test to see if there is a difference now. Interesting to see the board's results too. :o

How does a value investor value "property, plant and equipment" within a company? Do you take the net, after accumulated depreciation, or base it on the gross value? Been curious and hadn't read about it before. Any input is appreciated.

That's a good trick. Another one is to hit preview as you write. Each time you hit the server resets your timer, so if you hit preview in between each paragraph or whatever you should be ok. Ya, those are the two loopholes I've found, but forget to do it most times. Just a pain in the butt

Can anyone help me? I get this message when typing a message (typically if I spend over 5+ minutes on it) and click PREVIEW. I get another error when I click POST (and sometimes lose my typed message). See attached.

He writes entertaining novels. There. Fixed that for ya. 8) It was "entertaining" as I've become engrossed in the story and read it rather quickly. Don't get bored out of my mind. Didn't particularly enjoy this one that much however.

+1 :P

"Those convinced against their will are of the same opinion still." - Dave Ramsey

I've been doing this with my boy since day 1 (he's 7 months old now).....in 529 college savings. Of course he's a few years from even beginning to comprehend spending/saving/giving/investing. When he does understand, I'll probably direct him like innerscorecard said, or along the lines of my investments. But to try and have some understanding of why - even in its most basic form.

8+ is best for me. I'm lucky to not have to wake up to an alarm just my 7 month old waking me up ;D 6 or less and Im exhausted and worthless

I always tell investors to pay between 50-75 times the monthly rent if they want to cash flow well. The higher the multiple, obviously, the lower the return. Down here (San Antonio) most homes rent for 1% of their fair market price monthly. $1,000 monthly rent means home is worth around $100,000. The higher the value of the home ($200,000 +) the % drops. i.e., my home is worth $200,000, but would rent for $1,850 max. I find that in most areas around here. The typical investor (not value investor) makes the 12% annually gross, but after expenses makes maybe 6%. (haven't computed so it's a guess). These people aren't cash flowing much if anything, depending on the mortgage payment.

No problem. I wrote that when I was in a rush while on vacation this weekend. A few more things I'd add that I've witnessed/experienced: [*]Patience is key - most of us here are value investors. When buying rental properties you have to evaluate them and buy only when the price is right. Don't let your money burn a hole in your pocket - there are more buyers in the RE market who will pay top dollar than you think. Let them make the mistake. Sit and wait for a deal to come. Most deals are foreclosures and short sales. Do what you can to pay cash too. Nothing hurts like a vacancy and paying a mortgage. Limit your downside. [*]Trulia & Zillow vs. REALTOR - please, please.....do not use Trulia or Zillow to give you values (whether sales price or rental price). These are always (in most cases) far off from the true value.....and most of the time too optimistic. Have a REALTOR run comps for you on both sides - sales and rental. If your market uses a MLS system (multiple listing service) it takes no more than 5 minutes for the REALTOR to get good comps for you. [*]A REALTOR who is a Property Manager - this topic really pisses me off. I'll keep my soap box short. Find a Professional Property Manager (NARPM® - www.narpm.org - is a great source to find one in your area) to give you comps on rents. I've had many clients come to me after being sold a home by a general "sales" REALTOR and say, "My agent said the home would rent for X." Then I have to say, "I'm sorry, it won't rent for X, it will rent for Y (Y = lower rent)." The problem here is the REALTORS who aren't in the "rental market" don't know. I'm not knocking them down, because I'm the opposite - I don't specialize in the "sales market." My niche is rentals. So make sure you get very accurate figures and stay conservative in your estimates of rents. [*]NARPM® - This is the National Association of Residential Property Managers - I'm a member of this organization and very involved in my local NARPM® Chapter. We are Professional Property Managers who take ethics, education, industry knowledge and volunteerism seriously. We can earn designations (RMP® & MPM®) which help show our involvement in the industry, education, and continuing to better ourselves. So make sure you find a Professional to manager your properties. [*]Stay local - don't buy a rental in a different city or state. Buy something in your market (if you are a long-time citizen of that town/city). RE is a tangible asset and fun to look at and touch. You can also help keep a close watch on it and/or be hands on during make ready's etc. [*]Have tons of dry powder - I've only spent 5 years in the business, but I feel like I've seen it all. Have 3-6 months of rents in cash on hand PER unit (duplex = 2 units, single family home = 1, etc.). Something will break down - that I can guarantee. I had an owner (lives in California) - their home flooded one night during a very heavy thunderstorm. Home wasn't even in the floodplain. It was from run off from topography from across the street. Had to gut most of the home. All in all, $18,000 in repairs like that let alone the 3 months of vacancy for repairs, letting the tenant out of their lease, etc. Evictions can get bad too depending upon how your JP courts are. Looking at probably 2 months lost rent, vacancy, make ready's are typically a few thousand b/c the tenants trash the place. RE investing is tough. Patience is a must and the long-term mentality. Hope it helps.

For what it's worth....my career is in residential property management. I'm a Broker and manage approximately 100 single family homes (including about 5 duplexes). I've found many RE investors too optimistic about owning rentals. Being in the business, I deal with all the crap. Investors have to prepare for the worst but hope for the best. I'm a realist. My best clients come after our initial consultation when I straight up tell them to expect tenants to park their cars in the yard, kill the grass, change motorcycle oil on the carpets, and have to paint/replace flooring after each tenancy. I prepare them for the worst. They budget and save the profits for the expenses "that may come" (but never had, to that extent). When it's a perfect move-out, my client is sitting on cash and is happy because they are less stressed. Of course, I still advise them to hold cash so if something unexpectedly happens quickly (HVAC needing to be replaced, tunneling for plumbing issue, etc.) they have the funds available. The biggest mistakes my clients (owners) made/make: High Leverage - many clients are "landlords by default." They couldn't sell their homes when they moved so we ended up renting them. With this, many bought those homes with 3.5% - 5% down (FHA or Conventional). I know for members here that is not "the plan." But, when something like that occurs, the rents minus our fees and budgeting for vacancy and repairs cost the owner hundreds to thousands per year out of pocket. It goes with out saying that money is made at the buy. Of course, they never think that initially since it isn't meant to be a rental. Low cash levels - b/c of the above happening, most clients don't have emergency funds or budgets - no plan, fly by the seat of their pants. Therefore, when I have to replace an AC, carpet, paint, etc. they usually want to pay with a credit card or do everything possible NOT to have to do it. I also tell them that if they don't have liquid cash on hand to pay the mortgage for 3-4 months while the unit is vacant they shouldn't be in the business. Not using a good property manager - so I might be bias here, but I believe this is true. If you don't know what you are doing (Landlord/Tenant Laws, Association of REALTORS leases and other docs, etc.) you need to hire a professional property manager. I've been in the business for 5 years, and with legislative updates every two years there are requirements you need to stay up with - or you can find yourself in a lot of trouble. I advocate for a professional who runs a small business, small portfolio or rentals with a small staff (1-3 people managing 100 units....this is me). I firmly believe this is the most profitable model for the investor as the property manager can pay more attention to their rentals and tenants. I've been able to retain a higher percentage of tenants when working with a smaller portfolio (<100) than a larger portfolio (>250). This comes because I can interact and give more attention to tenants (they don't think the "landlord" is out to get them, even though I'm firm but fair) and I take care of issues quickly and correctly. Retaining tenants (no leasing fee, no vacancy) saves a ton of money. Nothing costs an owner more than a vacancy. My job is to help my owners lose less money.