schin

The spreads are terrible when I worked with microcap stocks. It takes forever to get into positions.. and when you want to get out... you will depress the market on that day/week by 10-15%... If you are a large shareholder, getting out requires a lot of people to take your shares..... and then, they wonder if there is something wrong with it... so, it gets depressed more. At 7 shares, it better be trading at 3k-30k per share.. because if it's penny... with commissions, illiquid/bad spreads... to get 1% of your portfolio.... it's a lot of work for that juice... I would recommend marrying into the family for the position. The academic literature says there is alpha there.. but, I call bullshit on most microcaps... the spreads are bad.. the market makers are crooks... and any sell takes days to find the buyer.. and if you need to get out during COVID, GFC, any bearish market, you're cooked.... minus well scream fire in a crowd theatre. You're the last person the market maker wants to deal with.

They're great security guards, but do you want them running the whole museum? It's a broader skillset.

I am not sure. But, is Abel being used like Sokol as a fixer? Warren has invested in some companies that need a person to run to closer -- like his Blue Chips Stamps, BRK investments..so, if Abel is the fixer so be it.. but, the CEO position is broader than chasing down the rogue company. I do prefer someone who is down to earth and just get some things done... rather than a self-promoter/marketing/sales guy in the CEO position. It's just going to boring at the AGM... I found Abel's responses to have a lot of corporate speak.... "We're working with various parties and we're going to be to do the right thing for the community... for the government.. and ultimately for the our shareholders over the long run..." There's only so many times we can hear that. I know it's not his swim lane, but love to hear what he thinks about banks, airlines, broader issues.. instead of his narrow operational and political/regulatory challenges.

Abel is running operations at MidAmerican Energy..... But, the other companies are on autopilot... His job is almost like coaching LeBron James and Tom Brady... I mean... Warren bought companies that were run by strong management. He never did fixer uppers. You have to have your management in place. BNSF, GEICO, and See's candies. They're decentralized to the max. It's pretty much accounting at the parent holding level and just praising them publicly.

Microsoft under Ballmer was terrible. Nadella is the real deal was at Microsoft with Gates and Ballmer...Just talent in hiding. I do not believe Apple has found another Steve Jobs or Steve W. actually... Tim Cook is an operations genius, but not a great creative genius. Does anyone know who spearhead the 3-D goggles coming out? Is he/she Jony Ives' 2.0? But, Abel might be a Tim Cook where he keeps the operations going. If someone needs a big deal, will he be the one they call? It might be Jamie Dimon. Maybe, Tom Gayner? I'm not sure if the AGM will be less popular... and people might gravitate toward Markel's meeting.. Or an Ackman meeting.. or Fairfax for all I know.

Blue Horseshoe loves Anacott Steel. Watch the movie, Wall Street and just don't do what Gordon Gekko does... LOL.

@james22 - I miss Ross Perot. That guy is a character and he often shows up in some crazy places like his meeting with Steve Jobs. I can see a lot of those as problems... "The generator's out; the microwave oven doesn't work; " and then he says "the captain's gay; " LOL.... Is that a problem?

Thanks.

@formthirteen Do you know what those ten companies are? I've always respected Terry Smith, but never dug in.

At 50% interest rate, isn't that loan sharking? I mean... and people talk about cc interest rate. I watched 1MDB on Netflix too and Tinder Swinder -- just sad seeing people skirt pass their bad deeds.

I watched it after your post. I don't believed he got off..... It just re-enforces white collar crime pays. Sheesh.

I always like $EBAY, but it would be worth so much more if it kept $PYPL. In one sense, good capital allocate relative to share buyback... bad allocation on divestment... It is cheap though.

With cannibals, do you believe the share count will go down so low, and Exxon already a majority shareholder will just buy it outright?

@Xerxes - I agree. I expect Aswath's returns to be better and more well thought out than Cramer's, but it's hard to evaluate performance because they do not run a hedge fund or have anything that is auditable. I believe he mentioned he has a portion invested in BRK, but I am not sure if he has beaten the S&P. Or what his track record is. I just posted his thoughts on Citi (on that thread) and you can evaluate his assumptions and rationale. I think the stock will big higher than his valuation, but he put puts it all in a model.

True, but it's hard to have a string of great CEOs. Look at most banks.... Look at IBM and HP.... It's hard to create a dynasty.

I know there has been a lot of discussion about Cramer... but, has anyone looked as Aswath Damodaran's investment returns on his posts? I've seen his valuations on Tesla and Citigroup... and it's well thought out. Anyone done any analysis or tracking on his picks from his YouTube/blog postings? Thanks, Bill

I have not read this... but, this should scratch your itch. https://www.amazon.com/Creative-Wisdom-Wang-Chuanfu-English/dp/7508526805

Munger began his investment career independent of Buffett. From 1962 until 1975 he managed Wheeler Munger & Co., an investment counseling firm, from a grungy office in the Pacific Coast Stock Exchange building. Munger’s investment record did not match Buffett’s in those years, but he earned a highly respectable compound return of 19.8% a year before fees and after expenses. https://www.forbes.com/sites/schifrin/2023/11/29/the-day-charlie-munger-was-introduced-to-the-world/?sh=1e2f943abbe0 Good article about Charlie from Forbes. Does anyone know who "Wheeler" from "Wheeler Munger & Co." is? Or what happened to him/her? Also, are there any letters to partners on Charlie's investment times?

I am hoping the long-dated treasuries is like Warren's investment in Dexter... It's happens, but it doesn't jeopardize the farm.... Yes, it's hard trying to get around his head on risk, capital allocations etc. Even at prior AGMs, his answers were very operational and long-winded. It was boiled to the essence like Warren, Charlie, Jeff Bezos, Elon Musk, Jamie Dimon.... it's just lifeless and a bit corporate speak. I think Abel will work with Ajit, Todd, and Ted.. but, the thing about Warren... is he hates committees... even when he disagrees with Charlies -- Warren is his own man and makes his own decisions. David Sokol's at least brough Lukoil, I have not see any investments being presented by Abel. It was a monarchy and now, upon Warren's death, it's now a committee/democracy with 4 cooks in the kitchen. Ajit has plenty of time to do his win-liners at the AGM, I hope he leans forward more. I do not know who really runs GEICO -- Todd or Ajit -- but, it was terribly underinvested in the 1990s and 2000s. Someone missed that hugely and now they're playing catch up. Nobody fell on the sword for that. But, that GEICO thing is a major f up in my book. Talk to my premiums.

Good question - but, isn't Warren's method to be super decentralized. How much operational stuff does Greg need to do? They have a small HQ staff because they delegate stuff to the operating units. Greg is pretty much just managing MidAmerica.... and once in the blue moon take a call when there is a capital crisis and involved Ted/Todd, if needed. I have nothing against Greg, but is he better than Jamie Dimon? Would Tim Cook feel comfortable calling him? Brian M. from BOA? He is really that much better than David Sokol? They're great operators... but, would people call Larry Culp or Greg Abel for business advice? I just haven't seen Greg in action... maybe, because MidAmerican has been so sheltered that we cannot see all this moves... but, MidAmerica as a stand-alone is not in the Fortune 50 -- that is the domain of his decisions right now.... at least, that's what I can tell.

Once Warren passes, would the AGM still be Woodstock for Capitalists? Will you buy Squishmallows of Greg Abel and Ajit Jain? Or Todd and Ted? It'll be interesting. Is there another event that will take its place? Fairfax AGM? Markel AGM? After Larry Bird and Magic Johnson, there was Michael Jordan... and then, Kobe... and LeBron... I wonder who will the heir apparent Investing Guru.

Steve Jobs loved cash hoards... and once he passed away, Tim Cook started doing a lot of buy back, which is a good thing to do with capital when the stock was a lot cheaper.. but, again, Steve would never had let that happen. Two, Steve was never a fan for having multiple SE and Plus versions of a base product.. but, again, that mandate got thrown out the window when he passed away. We'll see how it plays out...but, they cannot manage from the grave anymore.

I hear ya. With American-Russian relations, I doubt I'll get to see St. Petersburg anytime in the near future.

Other than an in-depth history on the origin and leaders of Russia, will it give you any investment tidbits? Or way to look at investments there?

There has some long ass wars.... and this Ukraine and Russia is a rounding error. I mean... You would think Cuba or North Korea would tap out with populations being pissed at the lack of progress and innovation.. yet, they keep on going... https://www.worldatlas.com/history/the-longest-wars-in-human-history.html