Jump to content

Morgan

Member
 View Profile  See their activity

  • Posts

    516

  • Joined

  • Last visited

 Content Type 

Posts posted by Morgan

    Bizarre Nano-Cap behavior ?

    in General Discussion

    Posted

    Assuming it's Bonal, how would you go about financing the deal? I'm just curious.

     

    Say you buy it for $5m, use the $1m cash on the balance sheet to pay down part of the debt, that leaves $4m more to come up with. Then raise $1m cash and then borrow $3m. The company makes (averaging the last three years before income taxes) 361k/yr. The debt load for $3m at 4% for 15 years (those may not be realistic terms) per year would be ~254k leaving 107k/yr before taxes.

     

    As a theoretical investor putting money into the $1m fund, the company making only ~100k/yr after the buyout, seems quite low. Particularly as the volatility in the earnings in the last five years or so. A change in the revenue by a small percentage or earnings would have pretty drastic effect on the net income and returns.

     

    Not long ago, it was trading for about $2.6m in market cap. Currently it's at $4.54m market cap. The earnings have been quite volatile, having gone from $4k (yes $4,000.00 - not $4 million) in 2010 and 510k in 2011 and then a more reasonable 132k to 443k in 2014 and 2015.

     

    Is there a better way to structure the deal to reduce risk and increase the profits? A better question to ask may be, is $5m a good price to pay for the company?

    Information on Sam Zell

    in General Discussion

    Posted

    I've been looking over the years for information on Sam Zell and haven't been particularly successful on how he got his start in real estate and what happened for the next 5-10-20 years after that. Does anyone have a summary of what he has done and why he has been so successful?

    Munger and Carl F. Braun

    in Berkshire Hathaway

    Posted

    I sometimes have wondered for my company how far down this kind of culture needs to be pushed to (hopefully) make a company more efficient, more prompt and more professional overall. What things do need to be stressed and what things don't. It sounds strange sort of, but if it works for some people and you can hire them and they thrive on it, it can certainly beneficial for both the company and employee.

    Mental Models--How do you 'use' them?

    in General Discussion

    Posted

    I don't believe he goes through a list, at least not publically. He probably had a list at some point, but he probably remembers everything on it. It's just part of his immediate thought process now. If he did have a list I wish he would share it more explicitly.

     

    Like dabuff said, Farnam Street seems to have the best list of Mental Models online.

    Charlie Munger: The Complete Investor

    in Books

    Posted

    Did anyone has ever compile a complete list of the mental models that Charlie uses?

     

    I've never seen a list with everything written out and explained, but I have seen a list with some explanations from Farnam Street. This is the most complete list I've found. https://www.farnamstreetblog.com/mental-models/

     

    Poor Charlie's Almanack has an updated version of The Psychology of Human Misjudgement speech in it as well as 10 other speeches and lots more information. It's probably one of the best books I've purchased in the last 10 years. If you're interested in mental models, you should get the book.

    This woman is really amazing!

    in General Discussion

    Posted

    From the statement: https://theranos.com/news/posts/statement-from-theranos

     

    "The Journal even declined an opportunity to experience the technology themselves by turning down our offer to send proprietary Theranos devices to their offices so they could have a demonstration of tests conducted themselves, and compare the results to those of other testing providers."

     

    If that is true, the Journal may have messed up pretty big. It may be an attempt to draw out how Theranos does their work by essentially forcing them to show more details the processes. If Theranos is actually able to do what they state, and I hope they can, they will make the world much, much better.

    Is an MBA worth it?

    in General Discussion

    Posted

    Like many others on this board, my own background was in engineering (prior to becoming an investor). I recently met and chatted with a money manager who got his MBA from Columbia. I asked him whether he thought getting MBA was useful. His answer was that it was just a "Union Card". In terms of its use in investing, he thought it was a total waste of time. If the MBA is not from top five  schools, my impression (after talking to him) is that it has no use whatsoever even as a "Union Card".

     

    This is also what I have heard from talking to people who have MBAs from Columbia and Harvard. It's great for building a solid network, credibility, etc, but they weren't sure they learned a huge amount that was really as useful as self-study/work experience. Also, they said unless you go to a top five school, it's very likely not worth it.

     

    I'm planning on trying to get an MBA myself so all of these threads are interesting to read over. 

    Case studies of great investors

    in General Discussion

    Posted

     

    Uploaded a case study for GGP. It really helped me get a general picture of how bankruptcies work. Ackman and Pershing probably made 50x their money. Thanks to Dougishere for the suggestion!

     

    www.raritancapital.com/casestudy/ggp/

     

    The GGP case study was really great. I read it over the weekend.

     

    I think Ackman said his investors made about 130x on the GGP investment. I think it was from a Charlie Rose interview after the JcPenny debacle. Either way, 50x or 130x, it's hard to complain.

    Biglari buys Maxim

    in General Discussion

    Posted

    Yup - the article gets quite personal:

     

    One source who left said morale is plummeting.

    Adding to the sense of unease, Biglari has been muscling in on cover shoots and seeking to meet the scantily clad models, the source said.

    “There is a level of creepiness to him that is off-putting,” said one former insider, who also said the staffers always know when he is in town because of the heavy scent of cologne that trails him."

     

    That's just what I was thinking. That article isn't exactly doing wonders for his reputation.

    Accepted at Oxford

    in General Discussion

    Posted

    Great news - I was just accepted to Oxford's MBA program. Very exciting, although still not an easy decision because it is expensive and a huge life change. I'm currently an architect and I want to transition to a career in asset management or real estate investment/development.

     

    Any Oxonians on here? Any words of advice?

     

    I'm just curious, why do you want to get an MBA to get into real estate investment/development? From what you've posted here it seems like you've got architecture/construction experience? Is there some reason you feel you need an MBA as opposed to starting a RE investment company and building it up?

     

    I completely understand you'd want to get an MBA regardless. Also, congratulations on getting into Oxford!

    Pour Your Heart Into It - Howard Schultz

    in Books

    Posted

    I read the book too and really, really enjoyed it. I actually had only been to Starbucks a handful of times and never enjoyed the experience, but after reading it I went back to see what I was missing. I found a drink I like, but it's $4-5 and McDonald's has the same drink for $2.50-3. And for some reason the Starbucks drink (from multiple locations) tasted like chemicals, which was really weird. The same drink from Joe Mugs in Books-A-Million was the best of all the places I tried, but it's a ways away.

     

    When I think about Starbucks, I can see how Shultz could grow it and also be so profitable, but at the same time it seems like such a bad value to me with the highest price and worst product. I guess everyone else likes it though. What do I know.  ::)

     

    I still recommend the book though; it was great.

    how many people here have cut the cable cord?

    in General Discussion

    Posted

    I grew up without cable, but obviously watched some TV growing up at friends houses, etc. In college it was included in the dorms/apartments I lived in but I watched basically zero TV. I'm just not in the habit of turning on the TV. After college I just never got it. Saves a ton of money every year. The savings will buy a plane ticket most anywhere once a year and I prefer to travel.

    What are the best books on history (financial or otherwise?)

    in General Discussion

    Posted

    World Economic Primacy: 1500-1990 by Charles Kindleberger is a pretty good book. Quite dense, but covers a lot. Most of Kindlebergers books are pretty good.

     

    Guns, Germs, and Steel by Jared Diamond is excellent.

     

    The Ascent of Money by Niall Gerguson is another good one.

     

    Ron Chernows biographies are quite good too. They typically cover huge figures in life over the last few centuries. You can learn something about the society and how people behaved in their time. Unsurprisingly, we're still basically the same today.

×
×
  • Create New...