BofA write up

[anders]

.. don't hesitate to let me know what you think of it, good and bad criticism is equally welcome..

BANK_OF_AMERICA.docx

[berkshiremystery]

.. don't hesitate to let me know what you think of it, good and bad criticism is equally welcome..

 

I just flew over your write up for 5 minutes. Well, done. You got my thumbs up !

[racemize]

excellent work!

 

one nit, in case you care: "now" -> "know" on page 5

[rranjan]

A general comment about the moat of big banks.

 

Even though it is a commodity type business, In my opinion, the most big banks have decent moat due to switching cost involved. Switching cost is not the money but effort, time required to break the inertia. Very few people change their banks based on slightly better alternative available. I feel retail deposits have lots of stickiness. Just my opinion based on what I have observed.

[anders]

racemize..I do care about my mistakes, thx for telling me..

 

peter.. you are right, I should have been more informative of the purpose.. The write up was quite quickly done and basically ment to illustrate the business from a helicopter view perspective.. the first stage in the process if you like; to get an idea about the business and to bring up potential risk vs. the upside to the surface.. Next stage would be deeper and include segment analysis, isolating advantages, info from competitors, catalyst etc..

 

I know a lot of the boardmembers have BAC in the portfolio. Would be interesting to find out how much of your time you spend on each case before buying it..?? Apart from the write up, I have red the quarterly reports, went deeper into the business structure, thought I had a sense of where the business is going and bought a part of it.. But would this be enough to justify my purchase?? Am I really speculating in belief that I am investing..??  ??? I am quite worried about Grahams warning, and looking back, when I started, I was just lucky, riding the bull wave in equities..

 

I understand the exponential learning curve, reading reports on same company for years and suddenly the correct price appears.. but Im still in the beginning of that curve (couple of years on it) so am a little bit afraid of having a high opportunity cost..

 

Rgds

 

[value-is-what-you-get]

Well done - thanks anders.  I found the housing chart to be most interesting.

[MrB]

Enjoyed it tnx. Check your Pabrai data. See AUM data. As far as I know this article has the AUM about right. http://seekingalpha.com/article/309865-pabrai-funds-most-recent-investment-activity

[anders]

shalab.. tnx for telling me.. the dilutive potential common shares are approx 350m which includes options and warrants..

Of the 5bn in cash proceeds to BAC, 2.1 bn was allocated to the warrant.. some of the warrants were included in the dilutive share count and some were not due to antidilutive effect arising from if-converted method.. which basically means that the dilutive effect will variate depending if the warrants are in the money or not.. 

 

[anders]

MrB.. I got the data from latest 13F-HR filing.. http://www.sec.gov/Archives/edgar/data/1173334/000119312511310619/0001193125-11-310619.txt...The %age represent the position in the equity portfolio.. not sure about the total aum or how to get hold of it..

 

[MrB]

Correct, but does it not only report US holdings and does Pabrai invest outside of the US and hold cash? Something to consider.

[berkshiremystery]

MrB.. I got the data from latest 13F-HR filing.. http://www.sec.gov/Archives/edgar/data/1173334/000119312511310619/0001193125-11-310619.txt...The %age represent the position in the equity portfolio.. not sure about the total aum or how to get hold of it..

 

Anders,...

 

Mohnish's real AUM numbers are published in his letters to partners.

 

I have send you an IM, if you need further help.

 

Cheers!