cheapguy

Welcome back!!! Also a request for everyone... Don't forget that we are disagreeing or debating ideas, not people.

If you can tell us which segment you are looking for, that will help.. Also which region, as each region/state/city has different set of rules..

Since Munger said, Google's moat is the widest he has ever seen--- Let us put extra effort in guessing what Charlie could be seeing. Charlie did not say it is a good investment, so for the discussion sake I will leave it out. Guesses: Is there a tipping point, after which competitors cannot catch up ? Is it the large number of users ? (numbers alone will not be enough in online things. but in manufacturing and retail, with larger and larger numbers, economies of scale kick-in). In newspapers, Once there are certain number of readers, the advertisers only go there.l This eventually led a single newspaper in a town. Is there some kind of dynamic here ? What more can google do to increase the moat ? (Let us leave aside about google's other initiatives sucess/failures..)

Attending --only for events on Sat or Sun Question: Where is the Motley fools get together and what time ?

Any event on saturday or sunday ?

Trust is the most fundamental thing in considering to buy Insurance companies stock. what would be a list of subtle things to note ? It is not like McDonalds or coke, where you can see if they discounting or doing some give aways which going to reduce the profits. In insurance companies, how can we know what is the contracts they are entering, at what price and to know as a stock holder if that is adequate pricing...?

In commodity businesses, the moat is for any company which can produce for the lowest cost. This should not be just one time deal, but a structural and ongoing advantage. Walmart basically has the lowest cost for supply chain and distribution

So what are their advantages/moat in battery manufacturing ? What are their advangates/moat in electric-car manufacturing ? What intrigues me, is this a very young company. For such a company to establish a sustainable moat is amazing. There are many tech companies which will change the world, but they do not have a moat to sustain. Microsoft, intel are examples. Warren did not invest in them. So this is just not another tech company.. Knowing WEB's philosophy being applied to a new seemingly tech/car company is amazing. Hope someone digs, deeper and deeper to get to this.

There must be something sustainable advantage or moat in BYD. I am sure the article is incomplete, as Buffett is well aware of Aircraft, car manufacturing companies history for the past 100 years of more.. So what could that moat be ? any guesses ?

What are the risks of buying WFC-L now ? In terms of the dividend getting suspended, what are the probabilities ? With yesterdays closing of about 575, the yield is still about 13%. It still looks good with a possible appreciation of the face value (hold some wfc-l bought at 500, wish bought more)

In the same spirit of this thread;;;; Which companies increased their dividends in the latest quarter ? and Which companies did cash only acquisitions ?

Which companies bought their stock or their debt and retired them ? If they did in the last 3-6months during this credit crunch, that would be great. That list would be good to start looking for prudent capital allocation by management, or even show their confidence in their financial situation or moat. Greatly appreciate, if anyone can post a list of such companies.

ericd1 & others, Anyone looked into PSA 's preferred. they have equity about $10Billion and the have preferred for about 550million. so the debt/equity is 5-6% only. their preferreds are earning in high 9's (close to 10) and very unlikely of not paying dividends or default. also as they are not in finance, it could be a good diversification. please poke holes in this corporate, preferreds

SD & SJ, ericd1, Appreciate if you can list your picks of quality preferred's with little catastrophic risk of. Thinking of margining up with borrowing costs of 6%. Will keep some room, and hope not to get a margin call. any advice on this strategy.. (have wfc-l, orh-a and some small portiion of risky preferreds like citi, hpt-pc..)

ericd1, why wfc-j while wfc-l is yielding 15% ? what is the probability wfc not paying the preferred dividends ? there are some reports, which argue convincingly that wells has negative equity, and the loan losses could be more than what they are accounting for.

How about some details of these funds. Are they leveraged ? What are the maturities and default rate assumptions in a "stress test" type of environment. How about 25% default rate and higher inflation rate scenario ?

Ericopoly & others.. We learn a lot from each other. So please do not quit from posting. The board is a great place due to knowledgeable posters like you. Again, please reconsider and let cooler heads prevail from everyone involved...

Ericd1---If you did their (FCH-c) cash flow analysis or how much their future cash flows can cover the preferred dividends, can you please share it.

Everyone, let us move on. All of you are great posters and bring value to this board. So please don't get hung up on this storm in a tea cup type scenario. Can you all call it peace and move on to more productive topics. It is not worth using all this brain power on this topic anymore!!

http://online.wsj.com/article/SB123844052183070639.html#mod=todays_us_money_and_investing Distressed Bank Investors Are Aiming for Preferred Treatment By PETER EAVIS No investor has nine lives. But those who think the recent bank-stock recovery is more than a dead-cat bounce are making some interesting bets. As well as buying banks' common shares and certain types of bank debt, they are dabbling in banks' preferred stock. These preferreds have been mauled as the financial system has come under stress -- and tend to move with whiplash volatility. Certain institutions have seen their preferreds wiped out completely, or their dividends rescinded, which destroys their value. And if the government's bank rescue shows signs of failing, preferreds could tank again, even at the stronger banks. . . . . . .

What can go wrong with WFC-L ? I have a small amount of WFC-L preferred's. Trying to see what are all the things which can go wrong with this issue. Does the recent rating of junk status for the preferred's affect the dividends going forward ? Some questions : 1. Is there a definining legal event, after which time Wells Fargo assumes this preferred stock. Are we past that event, or it can still legally not accept this preferred issue ? Fed's stress test ? Waiting for the FED stress test...I am hoping that even if Wells falls short, they maybe able to shore up the capital soon, without diluting the capability to pay dividends on preferreds/ More asset writedowns ? With deepening recession, maybe more writedown ahead ?

Junto and others--- Can you post the link to WSJ which has the preferred's file to download ? Why do you like CTZPRA ?

Can we compare the CEO's pay with the Hedge fund managers/Private equity pay ? Comparing them with some owner-ceo's is not an apple to apple comparison. Share holders don't like to give stock options, high pay, ... So how are you going to reward management ? So if CEO's are not owning a lot of stock (to start with), how will you make them own significant percentage of the company ? They could be adding value to the company even if they do not own a lot of the company. On the other hand, how many Hedge fund managers are ready to give up 2/20 formula, or apply that only to gains above and beyond the historical average (say 12% for S & P). I am hoping to see hedge fund managers or private equity people working for $100k or $1/year soon.

What are the filters everyone uses, before deciding to buy Or what is your check list items ?

I am thinking about CBL-preferred D series ? Anyone looked into it or have any opinion ?