jawn619
-
Posts
517 -
Joined
-
Last visited
Content Type
Profiles
Forums
Events
Posts posted by jawn619
-
-
just re-read this yesterday. Great book.
-
I guess he was driving without a margin of safety
NICE
-
Basically he was driving without a license....
-
A good idea but it probably won't happen.
-
Pabrai added tons of Posco now about 13% of assets as well as WL Ross Holdings which now are about 4% of assets while substantially reducing his Citigroup position. Additionally, he completed sold his Berkshire and BAC positions.
Link Below:
http://www.dataroma.com/m/m_activity.php?m=PI&typ=a
Wow. Who is he cloning on the FCAU and ZINC positions?
He has mentioned that ZINC is his first original idea, and FCAU was from a Columbia student's presentation.
-
I have. For the Series exams, I believe you need a firm to sponsor you.
-
"Sometimes underperformance is a good thing"
also I like how he says Consuelo almost every time he speaks. I know people like the sound of their own names but it sounds like he got it from sleezy salesman 101.
-
What do you guys think of Aswath Damodaran valuation books? This one is pretty concise and short http://www.amazon.com/Little-Book-Valuation-Company-Profit/dp/1118004779/ref=asap_bc?ie=UTF8.
Does McKinsey's book use examples straight from 10K without adjustments?
I've been reading Damodaran's book and still has trouble finding where he get the depreciation numbers from (in the Free cash flow to Equity section). Since I can't find it in 3M 2007 10K report, I am not sure whether that number is a typo or he did some other adjustments to get to that depreciation number.
yes the McKinsey book uses examples. Also, some of what they say is very clear. They care a lot about cash flows, and seeing increase in intrinsic value as the main driver of share price growth, and separating a business into operating and non operating assets/liabilities.
-
-
One of the best for sure
-
296.HK - Emperor Entertainment Hotel Ltd is an another interesting casino in china, trading at 5x net income
-
Stocks on sale
-
I remember him mentioning in a few videos some of his holdings.
One was a net net that generated consistent earnings, I think another was a Sears arb. Michael Price mentioned that Sears sum of the parts left the actual "Sears" retailer at 1/5 the sales of JCP. The other pieces were already publicly traded and about to be spun off I remember him saying they both stink, but he didn't think Sears was 1/5th the value of JCP. When asked why he hedged it and didn't just hold the individual pieces and wait for them to be spun off, he said that Sears was such a big portion of his portfolio that he had to hedge it.
One thing I learned from him is that like other great investors, Greenblatt looked down before he looked up. He made sure he wasn't going to lose money before looking at upside
-
A stock is having a rights offering and the record date is July 6th.
Let's say I buy the stock on July 6th. Will I be able to participate in the rights offer or Will it settle t+2 and I won't get the rights?
TIA
-
Fannie, Freddie CEOs to Get $3.4 Million Raises
LOLOLOL I think it's hilarious and so smart. FNMA is owned by shareholders....but they care more about getting profits back while the fed has no control to affect compensation plan. Very smart play from the CEOs #greed
-
I use debt consolidation offers from my credit card companies to borrow at low rates for 12-18 months. I only do this with small amounts (relative to my portfolio) though due to the risks involved.
As an example, I currently have about 10k invested that I got from my Chase credit card at 2%. Every 12 months I roll this to another available card through whatever balance transfer offer they have available. Generally the interest rates are 2-4% on my different credit cards depending on the current deal availability. Once the balance is rolled, I remove that card from my wallet and don't use it for a year since you have to pay down the low rate balance before any high-rate balance is reduced. I've done this multiple times over the last 6 or 7 years for different types of borrowing - I even financed several thousand of a car purchase this way since the 2% interest rate was lower than the 6-7% the car company was charging me.
Benefits: Consistently one of the cheapest ways to borrow 10-15k of non-callable, non-secured money at 2-4%.
Risks: Duration mismatch between borrowings and investments and potential inability to roll the amount. Keep the balance small relative to your portfolio to manage this risk.
I do this because it's the only form of debt I have outside of a small amount of margin debt, and it's a much cheaper substitution for margin debt through Scottrade.
It never ceases to amaze me the ingenuity that members of the board come up with in regards to personal finances. ;D
-
I plan on checking just the one time, right before I die
I on the other hand will probably die right after checking a stock's price
-
How often do you check in with Mr. Market to see what he's pricing your holdings at? I'm trying to check prices less, and I'm guessing less often is better, but it's been difficult.
-
I'm using EBITDAOECOGS(earnings before interest,taxes,depreciation,amortization, operating expenses and cost of goods sold) to evaluate the earnings power of businesses nowadays. Get with the times everyone.
-
Yea, it was sold a few years back, but it's open in both NYC & Las Vegas. (Not sure if the Vegas club is separately owned from the NYC club.)
The funny thing is that I hosted a party there for a charity once, and it's very, very strange to go there during the day to speak with the owners. The thing is just a giant white box. Amazing what you can do with strobe lights, loud music and free flowing liquor!
you mean expensively flowing liquor!
-
Just a side note... I don't know if you are self employed or not...See if you can do a SEP-IRA...it has much higher contribution limits I think $53,000 for 2015...
yes I am but I am leaning towards solo 401k/solo roth 401k because the contribution limits are higher and you can loan yourself money
-
I think you can assume bad management will remain bad. PFHO had their turnaround because they shifted their business to take advantage of a recent CA law. They were one of the first companies to jump on it and grew substantially. Their growth has pretty much halted in the last couple quarters and some major contracts are at risk. Once the larger insurance companies/servicers jump in, I think PFHO will fall back considerably.
It's rare in the microcap world to find a product or niche service that is unlikely to face competition AND has growth runway. A lot of the turnaround stories I've seen occur because the business economics changed and not because management suddenly changed their decision patterns. I like to estimate the replacement cost or new competition cost for all my investments. I look for businesses where it costs substantially more to compete with my investment opportunity then to buy them for a 100% premium. This also gives you a rough idea of whether they have the ability to raise prices or if they provide better substitute value. ELDO has the only non-farming senior water rights in a state with frequent droughts and has consistently won the best tasting water in NA award at the biggest water tasting competition in WV (if you aren't a water snob, you would be if you tried their water!). They are also the lowest cost producer because of their densely located sales and water source. I estimate that it would cost ~4x their EV to steal their business (and it would have to be at lower margins with out-of-state spring water... good luck). In ELDO's case, their business started to grow at 10%+ after 2009 (from 4%-5% for the first 20 years) because consumers in Denver are more willing to pay higher prices for local spring water vs. store-brand purified water. Their average customer is a regular Whole Foods shopper and follows an "organic" diet. This is extremely popular in Denver (relative to the rest of the country) and growth has accelerated in the past few years. The economics of selling bottled water have shifted incredibly since ELDO was listed in 1986. I'm a huge fan of the CEO, but the demand for spring water is the major driver of their growth.
That's the only example I have that I've already written about.
Just wondering, does PFHO have bad management? Stock looks pretty cheap right now and business has high ROIC at first glance. Also the fact that Eldo just took out a large amount debt and went dark doesn't bother you?
-
I always thought that putting money in a Roth was more advantageous than putting it in an regular IRA, but after doing some calculations, I'm not sure if Roth is the clear winner
Example
Assumptions
25% tax rate
10% compound rate
Year one
Either put $10k in IRA or $7.5K in Roth
Year 10 Roth $69,849 IRA $93,132.26
After taking a 25% discount to the IRA, you end up with the same amount.
Other things to consider
Roth contributions can be taken out any time after 5 years. That's a huge benefit because of the flexibility
Regular IRA can be used be taken out tax free for certain events like buying a house/education expenses
Does anyone have anything else to add/pros/cons of each? It's not a clear cut decision but I'm still learning towards Roth.
-
Crossroads. $30M market cap company with $200M of pending litigation damages coming in Jan 2016. Also has another patent portfolio that could be worth A LOT more. like near the $1B mark.
What are you buying today?
in General Discussion
Posted
Bring back Ballmer!