cmattporter

Is there any book or online resource that lays out complicated corporate structures e.g. shell companies, where to structure them, LLC's, LLP's, etc. Before I meet with lawyers I wanted to have some background knowledge. Thanks.

Looking at past ISRG financials, they don't need anymore cash, capital, etc. So I'm guessing management would distribute any unneeded funds, buyback shares, and/or hold onto the cash... Whatever creates the most return/value to shareholders. They could just wait until the opportune moment to buyback shares at a market fall, stock decline, etc. Unless that's too hard to do. My take, for ISRG and every other business, is why not sit on a hoard of cash until something develops that can't be questioned as being non-beneficial? Buying back shares of any company at 100% intrinsic value, as stated in earlier comments, is no problem. But buying back ISRG shares at $430? Their EPS is $15 and is going to drop for 2014. The only rebuttal would be if $430 is their intrinsic value, ok that's fine. But I will add they deleted the shares they bought instead of adding to Treasury stock which is another wtf.

I figure you would have to find the return on investment for two options 1.) Keeping the $1B in cash and its effect on value with 40.2M shares... Adds $25 per share to Assets 2.) Buying back $1B worth of shares (2M shares. Now would have 38.2M shares) and its effect on the value... What would you do to figure out option 2 value?

I have always been told that whenever a company is buying back their shares its a good thing for the shareholders. I ran some numbers on one company and starting to think otherwise. ISRG- Intuitive Surgical Equity at year end 2012 $3,580M At year end 2013 ISRG bought around $1B of their stock, decreasing their shares outstanding from 40.2M to 38.2M. If they didn't buy the stock, assuming the cash went to cash asset the equity would have increased to $4,500M. The book value on the equity of $4,500M w/40.2M shares equals about $112/share. The 2013 Equity Value adding in for the buybacks is $3,501M w/new 38.2M shares equals about $91.66 Book value/share. This doesn't make any sense to me. Can anyone explain? Matt

I appreciate all of your input. Simplicity and anti-formula belief is a notion I stand by. I will say the DCF model came up in a interview with Buffett at some college forum. The student asked for a way to find intrinsic value quantitatively rather than qualitatively and he responded with John William Burr's "The Theory of Investment Value" DCF approach. I've made DCF models in school (layman's version) and although they do require a lot of assumptions, wouldn't anyone agree they could be of use to the expert? (which I'm not)

I'm reading a book on DCF models. There's a variety of models they show, but looking for a more in depth guide. If anyone wants to help me out with recommendation please let me know. Matt

I would read the Buffett Partnership letters. There's good structuring ideas. Also find a good accountant. Smaller single run accounting groups know how to set up a partnership, llc, etc. legally. If you can't find anyone ask a lawyer. They can help with future investor contracts. Let me know if this helps. cmp

Wondering if anyone is at UMD. The business school seems to be a little soft and looking for other value investors. cmp

I have notes of every major point for the first 200 pages on the 3rd edition. If anyone wants to check them out let me know.

Made a mistake, not the last one he wrote, but... In relation to Security Analysis: "you can get a lot of the same info in a more accessible format elsewhere, but everyone says that Buffett’s favorite version is the 1951 edition. Yes there are differences, and the current version has a lot of non-Graham like stuff in it. Good Investing,Mike"

This is all my opinion: Liberals tend to have an better understanding of economics and how the system works, the easiest example is welfare/unemployment benefits. Republicans think of them as "handouts", but in reality it benefits everyone. If you have a candidate for welfare/unemployment, instead of ignoring, they provide the tools necessary to help someone grow and in return that person can now buy goods and services, pay taxes, and help the economy function. I think the economy is such a large intertwined system it is hard to grasp. There are instruments(liberal) that look horrible to an ignorant person, but are large, intertwined, and take time. Idk here's my rant!

I have read the latest edition of security analysis which was fine except for the commentary. Michael Burry said to read the Third Edition because of the last of Graham and you probably know the story. I picked up a copy and was blown away. The third is completely different and makes the latest seem like a waste of paper. I have read almost half way with a notebook full of notes. I'm wondering if anyone else has done the same and to give me some insight on any differences they've picked up or opinions. Thanks, CMP

Two particular ways of raising money that I want to discuss. Issuing new stock and/or issuing bonds. I want to find all pros and cons of each. What would you chose and in what circumstances/variables?

My friend got a loan from BAC for $25,000 to buy BAC stock during the beginning of 2009 when it was trading at $3.00. Let's just say I've considered to do the same at the current $7.

Why does everyone have SD?

Just wondering where everyone else is in regards to their yearly return. My "A" portfolio is up 12% since January 1st and my "B" portfolio, which was mostly completed in early September 2011, is up 18 1/2%. Personally I took a big hit during the whole debt ceiling and euro crisis. If anyone cares to share their info I'm curious to see where fellow Value Investors stand. CMP

What does it mean when there is a number in italics with a "d" next to it? like so... 10,849,967 8,983,639 /6,982,850/(d) (can't do italics) I don't know if its a dividend or difference or what Thanks Matt

I have this book in my library but have never read it. I've read The Intelligent Investor and currently re-reading Security Analysis. Is this book worth reading and apply the Graham philosophies? Thanks MCP

Can someone tell me why Buffett would invest in Lubrizol. I see their financial summary on msn, and don't think the company is bad at all... that said if anyone has read the 10q or 10k what do you think? And for MasterCard i think that they have an entirely too high P/E ratio

I feel that every stock I look at that has the most outstanding numbers comes from China. Let me say that I have no bias in regards to Chinese companies, but I might start to skip over any company with the abbreviation "PRC" in the company report. I can back this up by saying 11 of the 12 PRC companies that I think have phenomenal numbers and would like to buy have with them some sort of accounting lawsuit against them. If anyone cares to share their feelings towards my frustration feel free to comment. I give you all full permission to be as ruthless as one needs. matt porter

Im up to 13% ytd, for my whole portfolio. If anyone is around this general area contact me and lets share some info.