glorysk87
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Posts posted by glorysk87
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I got my last N mortgages through a single mortgage broker guy. I pretty much always took 30y no points no fees, which gives a bit higher rate, but then you refi again at no points no fees when rate drops .5 or more. So ended up at 3.5% and sitting there. Not sure if rates ever got to 3.0% 30y no points no fees. Perhaps I should ping the guy to check. ;)
Edit: I don't see rates at 3.0% right now. Should keep it in mind - maybe we'll drop there.
I see - thanks.
I'm looking at a refi right now, but I honestly can't imagine refinancing again after this. How much lower can mortgage rates go? By my math, my fees will be repaid by monthly savings within 15 months of refinancing. I'm about to pull the trigger on it.
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I got my last N mortgages through a single mortgage broker guy. I pretty much always took 30y no points no fees, which gives a bit higher rate, but then you refi again at no points no fees when rate drops .5 or more. So ended up at 3.5% and sitting there. Not sure if rates ever got to 3.0% 30y no points no fees. Perhaps I should ping the guy to check. ;)
Edit: I don't see rates at 3.0% right now. Should keep it in mind - maybe we'll drop there.
Jurgis - how were you able to get a mortgage with no fees? Appraisal, underwriting, title insurance, legal fees - all mandatory as far as I know. Would love to know your secret.
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I find myself in my bank's local branch for business banking needs, and large dollar needs. I'm not mailing the check from the closing of a house to an online bank to be cashed..
Funnily enough, I sold my house last year and deposited the biggest check of my life without stepping foot in a bank branch...I simply used the camera on my iPhone and my bank's mobile app.
Branche's are obsolete for deposit needs, in my opinion. The only thing I've ever needed a physical bank branch for was to get a cashier's check for the deposit for my new house. Other than that, I haven't had any need to step foot in a branch in the last 5 years minimum.
I will say, I can't speak to business needs as I don't own my own business. But I would envision bank branches slowly disappearing until there are only branches left in key locations.
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This may sound kind of dumb, and it is probably is, but I am trying to understand why some companies like Berkshire, Moody's, General Electric and Procter & Gamble borrow money ? they have been in business for decades if not more and they produce huge amounts of cash flows. why do they need to borrow money at X% if they can pay it down and use their own money (which is free) ?
I am asking since when trying to discount all future cash flows to equity owners I assume that the company will hold its debt level forever, which seems to be the case in real life, but why is it ?
They teach the Modigliani-Miller theorem in the CFA program. Essentially (and there are numerous assumptions here, so you have to take it with a grain of salt) in a world with taxes, the value of a firm increases proportionally with how much debt is used to finance the business. Meaning increasing the percentage of the capital structure comprised of debt increases the value of the business. Largely due to the tax deductible nature of debt.
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Couldn't the same thing be said for publicly traded corporations. At its base the DAO deosn't seem all that different. More ownership % = more control just like publicly listed companies. In both, more ownership % doesn't = intelligence or anything like that.
I don't think so. In a publicly traded corporation generally you have an ostensibly expert management team making capital allocation decisions. If offered a proposal by shareholders, they can generally choose to reject it if they deem it value destructive or even not an optimal use of capital.
Think of it this way. Do you think Apple would have been successful if instead of Steve Jobs at the helm, there was a democratic process in which anyone could make a proposal and the one with the most votes was executed upon? The company would have burned to the ground.
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That is the largest danger for sure. The things that make it interesting is that it isn't a democracy. Your vote is weighted by your shares, so those with the most to lose(or gain) have the most say. Also, as the article you posted points out, the contracts are written not in English, but in computer code (Solidity) and executed on the Ethereum blockchain. This will hopefully weed out unintelligent people from investing heavily and having a heavily weighted vote. Having a large amount of coders holding tokens, The DAO will be in a good position to invest in code heavy projects/companies. The danger is that it veers off of its circle of competence and invests in different types of companies as well. This is either going to work fabulously or crash and burn fairly quickly.
I think there are a lot of fallacies in these assumptions. Just because someone is able to read the code doesn't necessarily mean that they're intelligent. And even if they are able to read the code AND they are intelligent, it doesn't necessarily mean that they're able to make optimal capital allocation decisions.
Similarly, if someone has a very high % ownership it means they exert undue influence over the decisionmaking process - but just because they have a high % of ownership doesn't necessarily mean that they're able to make the right decisions.
Eh. I mean the concept is interesting. But (IMO), I'd consider it burned money to "invest" in one of these. Way too many unknowns.
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http://www.bloomberg.com/view/articles/2016-05-17/blockchain-company-wants-to-reinvent-companies
Levine makes a good point. This is, essentially, a general partnership.
There's generally a reason that capital allocation decisions are made by a select group of people - generally the experts in their field. Crowdsourcing allocation decisions seems...suboptimal.
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“You’re dealing with a lot of silly people in the marketplace; it’s like a great big casino and everyone else is boozing. If you can stick with Pepsi, you should be okay.”
Really interesting - that's the only time I've heard him say the word Pepsi in my life.
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I have no idea how many people we had, 150-200 I think. I'd have to ask my wife, it was medium sized.
Americans... ::) :o
Supersize me baby.
HAHA...really, Americans are the offenders here? You've obviously never been to an Asian or Middle Eastern wedding...
Raritan Capital Q2 Letter
in General Discussion
Posted
Eh - I strongly dislike ideas like this where the perceived discount is based on a SOTP analysis that includes ownership of public equities. It makes the *huge* assumption that the market is correctly valuing those public companies. I've seen many SOTP analyses like this where instead of the investment increasing in value to close the discount to the perceived SOTP value, the value of the underlying holdings decreased in value to close the discount.
I think if you want to put together a compelling idea you have to go through each of those underlying public companies and get really really comfortable that the market is valuing them correctly.