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MrB

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Posts posted by MrB

  1. How does it really work though? Do you choose your investors or do they choose you?

     

    It is well worth reading http://finance.fortune.cnn.com/2010/12/10/bruce-berkowitz-the-megamind-of-miami/ again and also the discussion on this board http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/fortune-magazine-article-on-bruce-berkowitz/

     

    His comments on his $25 Bn target was pointed out as a concern (see below)

     

    I think it is a challenge to get $25Bn together from true value investors.

     

    There is an important lesson in this for anyone on this board that manages OPM. 

     

    Bargainman...

    I think Berkowitz and Miller are completely different.  Berkowitz is continuously focused on the downside.  I mean he has like 2/3 in equities, and the rest in cash and bonds?  He does special deals like GGP, and ACF.  Miller loved taking risks.  I remember the interview with Bruce about his manager of the decade award.  He basically said 'yeah that's nice, but it doesn't matter if I don't perform going forward so whatever".  He basically took it in stride as if it barely mattered.  Bill Miller's foray into the financials after the first shoe dropped also showed me the clear difference between the two.  Miller's reasoning if I remember it, was basically that 'yeah this happens and it's a buying opportunity, and I bought into financials the last time this happened and made a bundle' (at least that's the gist of what I remember reading, contrarian but not focused on the downside).  Bruce stayed the heck away, way away until everything cleared out.  Or mostly cleared out.  Anyway, the only thing that makes me uncomfortable about the article is the lavishness of his house, but I guess if you manage 10+ billion you can afford luxuries like that, and hey not everyone can be like Buffet :-)  Oh and of course the 10+ billion and his statement that he things 25 billion is a good size for the fund..  Doubt he'll be able to outperform much with that but who knows?  The other thing I liked was his daily speed walk and workouts with a personal trainer.  Just finished the book "Brain Rules" and the whole "exercise is scientifically proven to improve executive function" kind of struck a cord with that article. :-) (my emphasis)

  2. Great feedback thanks.

    Stahleyp; it's official you are weird! ;) Makes me think of this habit my oldest daughter "picked up" on. I will be standing somewhere and she will run up to me shouting. Daddy look what I found! It will be a coin she picked up from the sidewalk/floor somewhere.

     

    Anyway, good comments everyone thank you. Rkbang; the buckets is a good idea. I've been doing spending and saving, but did not break charity out into a separate bucket. I like it. 

     

    Some more ideas on teaching them about compounding and delayed gratification anyone?

  3. http://www.bloomberg.com/news/2011-08-03/bank-of-america-sued-by-walnut-place-over-mortgage-securities.html

     

    What I really want to know is what EXACTLY it is that you don't like or why EXACTLY you think it is ok?

     

    Please be so kind and post the specifics of what he is doing wrong or why it is ok.

     

    Also see JSArbitrage's thread for discussion. http://www.cornerofberkshireandfairfax.ca/forum/index.php?topic=5829" data-ipsquote-contentclass="forums_Topic" 63647;topicseen#msg63647

  4.  

    Yes, if they don't set some sort of limit.  I would suggest they cancel the visa offer once inventory levels have dropped substantially and prices start on an uptrend.  Any longer, and as you mentioned, they are just going to create another bubble.  Cheers!

     

    Why would you want to limit it in the first place?

  5. 5 min scan

     

    FY (Aug 27)          2011  2010  2009 

    Revenue (M)  6,849.47  5,807.93  5,449.28 

    EBITDA (M)        324.15  322.15  219.09 

    EBIT (M)                  272.96  271.01  174.72 

    Income Available to Com Excl ExtraOrd (M)  258.49  247.09  142.86 

     

    P/S    0.13

    PE      3.30

    EV/NI  5.20 ((868+528-50)/258) 528 on and off balance sheet debt

     

    Other: Unconsolidated sub - Might be worth something

              Balance sheet will need extra analysis work

     

  6. Following two headlines next to each other when I opened the FT this morning  http://www.ft.com/home/us

     

    On the Left:  ECB overnight lending jumps to €8bn               

    On the Right: Markets head for best week since 2009

     

    Mr Market, Time to take your pills!

     

    http://www.ft.com/intl/cms/s/0/5b7d1a50-1cc7-11e1-a134-00144feabdc0.html#axzz1fNocxgB7

    http://www.ft.com/intl/cms/s/0/2168664e-196b-11e1-92d8-00144feabdc0.html#axzz1fNocxgB7

  7. I still think in the period from 2008-2018 the losers and winners will be broadly separated by those that focused on the macro and as a result were mostly sitting on the sidelines, because it will be volatile without taking any significant direction up or down over that period. Then there will be those that kept their heads down and grind it out by focusing on the fundamentals, whilst not being overly greedy or fearful.

     

    I prefer to keep my head down and ignore the noise.

  8. Absolutely. A bit like the notion to always surround yourself with people smarter than yourself.

     

    http://en.wikipedia.org/wiki/Allan_Leighton

    Leighton's Ten Golden Rules of Business:[10]

    1) Keep it simple

    2) Focus on execution

    3) Listen to your operators

    4) Think small. Small is big

    5) Less often is more

    6) Your people come first

    7) Think like a customer

    8) If in doubt, do the right thing....

    9) ....but then do things right

    10) Remember, EGO stands for "edging good out"

     

  9. 1994.09 SP500    466.96

    2011.09 SP500 1,136.90

    Rate                         5.4%

    Paulson                 14.0%

    Outperformance 8.6%

     

    I assumed with 14% you meant compounded. Further, assuming my quick numbers are correct then it is actually outstanding. The SuperInvestors of GD ville outperformed by just over 6% and Buffett double that.

     

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