rb
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Posts posted by rb
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Well as I've said, the hydro plants are a very good battery for renewables. So the battery already exists and is in place. They'll just have to figure out a way to pay the hydro plants for the service. I think a lot of the talk about grid level batteries has to do with the fact that they don't want to shell out the $$$ or some negotiating position or something.
On solar, most people just look at their power production. What is often left out is that solar panels also absorb a lot of the heat. So in the summer they actually save a ton of power that would otherwise go into your AC (think of them as negative calories) on top of the power they produce. That makes them a lot more valuable.
The requisite parts are available and eventually we'll get there just slower than we probably should.
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I know it's not rational for me to own my home outright (not claiming to be a great capital allocator at this time) and I'm actually contemplating buying another renovation project in a neighborhood I'd want to live in & then switching homes & selling my present habitat (a difficult thing as I enjoy access to the bay & Gulf directly from my back yard & can't find a replacement other than a better view with less utility.)
I know, just get a mortgage on my existing home (can't because I'm being irrational right now...)
I don't think that you're necessarily a bad capital allocator. Maybe somewhat inefficient. But so what? Strip malls and parking lots exist because they are efficient (read cheap) but they're ugly as balls and make your life worse so in the end not such a good thing despite efficiency.
Yes maybe you can leverage your house and use the extra funds to make some smart investments and in the end you'll end up a bit richer. But then you'll have to monitor and balance your leverage, etc, basically more headaches. Alternatively one can be less capital efficient, have peace of mind, enjoy life and have no worries regarding having to put one's home back to the bank or not. What if you get rich enough and don't need the extra funds? Wasn't that a waste of time?
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My car is only takes 91 and above. For regular the discount is lower more in like with what you're saying.
All this tells me that either Costco is taking a sizable loss on gas to attract customers like me or that gas stations are taking their premium gas customers for a huge ride.
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Actually hydroelectric plants can act as super-giant batteries. They're great at balancing the load from renewables.
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What they do with the investment portfolio of Allied will be key. Prem has lost credibility the past 5 or 6 years due to decisions made in the investment portfolio. Can they get their investing mojo back?
I don't know. This doesn't really seem like value investing. Make an acquisition at a price that like Ben Hacker said doesn't seem great. Talk about reason to change strategy and for the acquisition is an election in the US. This just feels like more top down macro stuff as opposed to bottom up analysis/buy at a discount/margin of safety value investing.
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BTW - if you ever need tires or glasses both places have quality for far less.
And gas! In Canada I pay about 18 cents per litter (72 cents per gallon) less at Costco than at a gas station :)
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This extends to every friend and family member. I refuse to invest for them.
Maybe. I have had a great experience running money for my friends. I'm also very open with what I do and what they should expect. Also depends on the friend and compatibility for this sort of thing. We all have an array of friends some are more serious and analytical and some are less so but are great to hang out with on a Friday night. Choose the right fit when accepting which ones you invest for.
Another personal anecdote is that I have twin sisters. One I've invested money for for years. She's done great and is very happy and we have a very good relationship regarding investments. The other I refuse to invest a penny for. It's all related to fit and attitudes. But still..... don't touch the mother-in-law's money. 8)
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Uccmal,
Time for a separate topic about Mother-in-law-investing, Sister-in-law-investing etc. in the general discussion forum? - This could be interesting.
Nah, you don't need a thread. It's a very simple. Do not invest money for your mother-in-law! More gray with the sister-in-law but maybe best to stay away from that as well.
Much obliged, good sir.
rb,
Hah! - Then you'll get the honor to open the new topic, in stead of Uccmal? [For my part, I can assure you, it will be a bit entertaining].
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It's been suggested by a fellow member that we should have a topic on Mother-in-law and Sister-in-law investing.
My initial advice. Do not under any circumstances run money for your mother-in-law. There's more gray when it comes to your sister-in-law, but I'd say you should err on the side of caution and stay away from that as well. ;)
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I would ask, What stock have you held for the last 15 years?
I'm not that old so by design I wouldn't have a lot of stocks that I've held for 15 years. But TD is coming up on 15 years for me.
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Uccmal,
Time for a separate topic about Mother-in-law-investing, Sister-in-law-investing etc. in the general discussion forum? - This could be interesting.
Nah, you don't need a thread. It's a very simple. Do not invest money for your mother-in-law! More gray with the sister-in-law but maybe best to stay away from that as well.
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It is all about an election coming up in May.
There is a lot of pressure on the government from realtors, builders, etc. and the market has stalled and they are hurting. They are big contributors.
The government probably needed to be seen as trying to take care of them as well. So they are playing both sides.
Yea but this kinda defeats the purpose wouldn't you say?
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Not any loan, generally it must earn investment income. So there is some debate as to whether holding Berkshire on margin in Canada would qualify as a margin expense deduction because Berkshire has never paid a dividend except once in the 1960s and doesn't seem that it will at this time.
There is no debate. In Canada you can only deduct margin interest if the loan is used to earn investment income - interest, dividends, rent, etc. Since Berkshire does not pay a dividend it doesn't qualify for interest deduction. Normally this doesn't matter because presumably one will have some other names that pay dividends so one will say that the margin is for that. But for example one has an account that only holds BRK and has a margin loan then the margin interest on that account is not deductible.
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The BC people have lost their minds. Housing bubbles can literally drive people mad.
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Well dow is huge. They must have a little something BRK can squeeze into Lubrizol.
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The billionaire has previously said that he’s unlikely to keep the common stock.
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As someone else mentioned, I'm generally not a huge fan of Tilson. But this is laughable. First, Tilson of all people is the last guy I'd ever call out as a "Wall Street Billionaire". He's piggybacked the big time hedge funder rep of his college buddies Einhorn and Ackman while pretending to have the success of his peers when clearly he doesn't. I'm not even sure he'd wants to, but nevertheless he's oddly outspoken and sometimes seems to try too hard to be like the two aforementioned fellows. His LL crusade was so outrageous it overshadowed a tremendous call.
Warren though, is a complete clown. A one Indian traveling circus using any sort of populist rhetoric she can grasp at to try to position herself for a future White House run. "Oh big banks are evil", "oh Wall Street ruins the world", "Oh drug prices are too high", etc. Classic loud mouth complaining who's constantly looking to stir up a storm rather than try to solve anything.
I see so banks should be unregulated, you should pay out of your nose for drugs.... and now populism is wrong? wow
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And so the cash pile grows some more.
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Ontario doesn't permit an operator to put a toll booth on the road; you have to sell a transponder plate &/or rely on collection backed by photo-radar - & the honesty of the public driving the road. At the time it was built, the business model also assumed that if you didn't pay, your licence plate could not be renewed until you paid the outstanding fine. Turned out that for a province to collect on behalf of a private company in this manner - is illegal; however were the province to own the asset, it would not be a problem. Hence, it's a 'stranded' asset.
In Ontario you still can't renew your plates if you have outstanding balances with 407 greater than 150 days.
I think what you may refer to is a ruling that the gov't can't refuse to renew your plate if you go through bankruptcy. Instead in that case 407 just becomes another one of your creditors.
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It can be done badly so easily - Just ask the operators of Highway 407 across Toronto.
What's wrong with 407?
Badly may be overstated. It makes money, but I cant get clear how well it does. The numbers are published. To me it looks like it is being bled dry. Mostly, I have been working on the premise that SNC is, and has had trouble getting out of it. There have been various attempted sales. The CCPIB has picked up stakes over the years but their target return is lower than a private company, and I expect they have reached their buying limit. Anyone who buys it doesn't get the same returns the initial buyer (SNC, Cintra) assumed they would get from the asset. So, they are stuck with it, and have no option but to make it work. In this low interest rate environment that is okay for now, but if their bonds have to be issued at a higher price then the squeeze could start. Since we have been operating in a declining interest rate environment since 1999 it hasn't been overly painful but the lack of buyers stepping forward to buy part of Cintra and SNC's stakes, that have been shopped, kind of indicates that they cant get the prices they want.
It's a (mostly) unregulated infrastructure asset that is increasing revenue, and CF at 10% per year and will continue into the future. It is a fantastic asset. The reason why it looks like it's being bled is because the shareholders dividend out all excess cash. Keep in mind that it's more of an asset than a company.
There have been several sales of stakes in 407. CPPIB has indicated that it is willing to buy more. There's also the option of one of the stakeholders to independently list their shares. The company is probably worth about $15 Bn so it wouldn't be a small cap or anything like that. It's true that it has been a great investment for the initial buyers. But then you can say that about a lot of stuff. Sure it would have been better to buy BRK in the 80s instead of the 2000s. But you still did well if you bought BRK in the 2000s.
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JNJ is good as a 15 year stoc. Others would BRK (obviously), BUD, HON, GOOGL just off the top of my head. This is from a quality/operational perspective. Of course stock prices matter as well and they're obviously bargains right now. But if he switched out of mutual funds and into 15 year stocks like these and saves the mgmnt fees he'll do well even at these prices.
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Yup... BAC at $13, uncertain future, regulation, breakup of large banks vs just over $23 today and things looking up. Same fear for other players. I see your logic. And you do manage OPM? :o
Cardboard
I had the same reaction. If the answer is true, I'm glad I'm not one of the limited partners.2001 BAC $31/share
2006 BAC $54/share
2009 BAC $4/share
Yep! The old rules worked out great for shareholders. We should totally revert back to that full speed. And in 2006 BAC had no problem because the share price was high.
My LPs are grateful you guys are looking out though.
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Slate? I just love rkbabang!
Ray Dalio: Trump could ignite animal spirits and it could be huge for markets
in General Discussion
Posted
Add to that the fact that the economy didn't really grow much faster under Regan. 3.6% average under Regan 3.3% average under Carter. On top of that the the US economy doesn't actually have the ability to grow faster than it is right now.
So yea I do think that these guys are either looking for something to justify changing their views or they really are creating some narrative in their heads that is not there. If it's the latter it's pretty scary.