BargainValueHunter Posted March 28, 2013 Posted March 28, 2013 The latest bold bet from ‘The 400% Man’ Commentary: Why a top stock picker believes in Bank of America http://on.mktw.net/YWoOoI Mecham’s fund held $34 million, or 18% of its assets, in Bank of America at the end of 2012. The Bank of America stake was just one contributor to yet another successful year for Arlington. The fund earned a stellar 36%—or 29% net of fees—in 2012, way ahead of the 16% gain for Standard & Poor’s 500-stock index Mecham’s partner, Ben Raybould, told me last year that Mecham wants to get rid of the computers in their office, as they are a distraction. Mecham spends his time reading—mainly company filings, which he prints out, old-school. You couldn’t get further from the modern world of Wall Street, where everyone is supposed to be online and connected all the time, and where we are all drowning in data. Every time someone praises the Internet in my presence I am reminded of Darth Vader’s scathing comment about the Death Star: “Don’t be too proud of this technological terror you’ve constructed.” Man, those comments under the article are harsh. Tough crowd!
fareastwarriors Posted March 28, 2013 Posted March 28, 2013 The latest bold bet from ‘The 400% Man’ Commentary: Why a top stock picker believes in Bank of America http://on.mktw.net/YWoOoI Mecham’s fund held $34 million, or 18% of its assets, in Bank of America at the end of 2012. The Bank of America stake was just one contributor to yet another successful year for Arlington. The fund earned a stellar 36%—or 29% net of fees—in 2012, way ahead of the 16% gain for Standard & Poor’s 500-stock index Mecham’s partner, Ben Raybould, told me last year that Mecham wants to get rid of the computers in their office, as they are a distraction. Mecham spends his time reading—mainly company filings, which he prints out, old-school. You couldn’t get further from the modern world of Wall Street, where everyone is supposed to be online and connected all the time, and where we are all drowning in data. Every time someone praises the Internet in my presence I am reminded of Darth Vader’s scathing comment about the Death Star: “Don’t be too proud of this technological terror you’ve constructed.” Man, those comments under the article are harsh. Tough crowd! haters gona hate...
zippy1 Posted March 28, 2013 Posted March 28, 2013 In other news he's also getting rid of his telephone and switching to carrier pigeon, he was receiving too many calls and they were distracting. Surely, you jest, Oddball. :) But what you said reminds me of a Walter Schloss interview done by OID in either late 80s or early 90s. It was mentioned that the interview took the whole afternoon. The phone rang once during the interview. While picking up the phone, Schloss commented, "It must be my wife. I wonder why she calls." It turned out to be caller who had a wrong number. :)
rukawa Posted March 29, 2013 Posted March 29, 2013 I think its crazy not to take advantage of technology. Investors today have huge advantages over investors of the past. The online availability of information being the hugest. This website is a case in point. But beyond this website there are a huge number of things you can do with technology that can help with investing. For instance if you want to determine all stocks which are cannibals you can run a Bloomberg stock screen and find out the answer in a couple of seconds.
oddballstocks Posted March 29, 2013 Posted March 29, 2013 In other news he's also getting rid of his telephone and switching to carrier pigeon, he was receiving too many calls and they were distracting. Surely, you jest, Oddball. :) But what you said reminds me of a Walter Schloss interview done by OID in either late 80s or early 90s. It was mentioned that the interview took the whole afternoon. The phone rang once during the interview. While picking up the phone, Schloss commented, "It must be my wife. I wonder why she calls." It turned out to be caller who had a wrong number. :) Yes, all humor, sorry if it doesn't translate well online.
oddballstocks Posted March 29, 2013 Posted March 29, 2013 I think its crazy not to take advantage of technology. Investors today have huge advantages over investors of the past. The online availability of information being the hugest. This website is a case in point. But beyond this website there are a huge number of things you can do with technology that can help with investing. For instance if you want to determine all stocks which are cannibals you can run a Bloomberg stock screen and find out the answer in a couple of seconds. I completely agree, when used correctly computers are great tools. I don't know why it would be hard to just turn off the monitor, he wouldn't see quotes or see newsflow. If he really wants to make sure he's clueless about his portfolio he should take my approach, get a full time job, then work from home with two little kids. In between conference calls and helping out my wife during meltdowns I'm unaware there's even a market. If someone came and told me some stock I owned dropped 50% while I was wrangling with a melting down toddler I'm not even sure it would register.
alwaysinvert Posted March 29, 2013 Posted March 29, 2013 I think its crazy not to take advantage of technology. Investors today have huge advantages over investors of the past. The online availability of information being the hugest. This website is a case in point. But beyond this website there are a huge number of things you can do with technology that can help with investing. For instance if you want to determine all stocks which are cannibals you can run a Bloomberg stock screen and find out the answer in a couple of seconds. I completely agree, when used correctly computers are great tools. I don't know why it would be hard to just turn off the monitor, he wouldn't see quotes or see newsflow. If he really wants to make sure he's clueless about his portfolio he should take my approach, get a full time job, then work from home with two little kids. In between conference calls and helping out my wife during meltdowns I'm unaware there's even a market. If someone came and told me some stock I owned dropped 50% while I was wrangling with a melting down toddler I'm not even sure it would register. I don't know why fat people don't get thin, they'd just need to eat less.
rukawa Posted March 29, 2013 Posted March 29, 2013 I think of this example when I think about this. I imagine Buffet working in the 1950's for Graham. He has got on a grey lab coat. He goes through the Moody's manuals and fill in forms for Graham which examine stocks on criteria like Price to Book, debt to equity etc. He spends weeks and weeks doing along side Walter Schloss filling in hundreds of forms. After weeks of painstaking work the narrow they search down to a couple a handful of stocks worthy of further examination. Here are two outstanding future investors performing a basic stock screen MANUALLY that I could do in a few minutes on a computer and over a far huger universe than they would ever consider. And I am supposed to forgo this huge advantage?! This all reminds me of this video: http://www.youtube.com/watch?v=pIAoJsS9Ix8
CONeal Posted March 29, 2013 Posted March 29, 2013 I think of this example when I think about this. I imagine Buffet working in the 1950's for Graham. He has got on a grey lab coat. He goes through the Moody's manuals and fill in forms for Graham which examine stocks on criteria like Price to Book, debt to equity etc. He spends weeks and weeks doing along side Walter Schloss filling in hundreds of forms. After weeks of painstaking work the narrow they search down to a couple a handful of stocks worthy of further examination. Here are two outstanding future investors performing a basic stock screen MANUALLY that I could do in a few minutes on a computer and over a far huger universe than they would ever consider. And I am supposed to forgo this huge advantage?! This all reminds me of this video: http://www.youtube.com/watch?v=pIAoJsS9Ix8 Depending on the data in stock screens is not 100% accurate. In the article is mentions that he gets most of his reading from SEC filings. A big advantage for the 400% guy is actually reading the fillings since so few people do it. I think his approach is unique is this era and he's wanting to take steps to eliminate alot of the noise. The internet is is kinda like a crack addiction, you never get enough. Sometimes the best approach is to just unplug and think on your own, process the information.
oddballstocks Posted March 29, 2013 Posted March 29, 2013 I think its crazy not to take advantage of technology. Investors today have huge advantages over investors of the past. The online availability of information being the hugest. This website is a case in point. But beyond this website there are a huge number of things you can do with technology that can help with investing. For instance if you want to determine all stocks which are cannibals you can run a Bloomberg stock screen and find out the answer in a couple of seconds. I completely agree, when used correctly computers are great tools. I don't know why it would be hard to just turn off the monitor, he wouldn't see quotes or see newsflow. If he really wants to make sure he's clueless about his portfolio he should take my approach, get a full time job, then work from home with two little kids. In between conference calls and helping out my wife during meltdowns I'm unaware there's even a market. If someone came and told me some stock I owned dropped 50% while I was wrangling with a melting down toddler I'm not even sure it would register. I don't know why fat people don't get thin, they'd just need to eat less. While you jest it is true. If someone were fat and they reduced their caloric intake to 500 or 1000 calories a day they would lose weight, that's not up for dispute. This all boils down to self-control. Why do some people spend all day on Facebook, or Twitter or corner of ber….uh...
alwaysinvert Posted March 29, 2013 Posted March 29, 2013 I think its crazy not to take advantage of technology. Investors today have huge advantages over investors of the past. The online availability of information being the hugest. This website is a case in point. But beyond this website there are a huge number of things you can do with technology that can help with investing. For instance if you want to determine all stocks which are cannibals you can run a Bloomberg stock screen and find out the answer in a couple of seconds. I completely agree, when used correctly computers are great tools. I don't know why it would be hard to just turn off the monitor, he wouldn't see quotes or see newsflow. If he really wants to make sure he's clueless about his portfolio he should take my approach, get a full time job, then work from home with two little kids. In between conference calls and helping out my wife during meltdowns I'm unaware there's even a market. If someone came and told me some stock I owned dropped 50% while I was wrangling with a melting down toddler I'm not even sure it would register. I don't know why fat people don't get thin, they'd just need to eat less. While you jest it is true. If someone were fat and they reduced their caloric intake to 500 or 1000 calories a day they would lose weight, that's not up for dispute. This all boils down to self-control. Why do some people spend all day on Facebook, or Twitter or corner of ber….uh... Yes, but sometimes limiting your choices beforehand is the wiser choice. I know I' m not rational enough to always make the choices I actually want to make long-term
writser Posted March 29, 2013 Posted March 29, 2013 Yeah agreed. Self-control is a scarce resource, it should be allocated wisely. If you're obese you shouldn't live in a house stuffed with snacks next to a Burger King. If you want to stop drinking / smoking you shouldn't go to a bar. And if you aspire to be a rational value investor you shouldn't have an office with Bloomberg tv, Interactive Brokers terminal ready to trade and a spreadsheet to show your p&l realtime. Much easier to succumb to the short term noise. No computer in your office might be taking it too far but I wouldn't be surprised if it is beneficial. There's such an overload of information and news on the internet that it's pretty easy to lose the big picture. The worst things are the brokerage apps for your phone .. Now you can be distracted 24/7 by the performance of your portfolio! Even this forum is a distraction (though a valued one :) ). The signal to noise ratio here is probably the best from all forums I've ever seen, but still if you spend two hours here they're not as productive as two hours of hard work: reading the actual 10K's, doing the math.
mhdousa Posted May 16, 2013 Posted May 16, 2013 New portfolio out as of 3/31/13. Still about 60% BRK. Added a lot more Vistaprint and XPO Logistics. https://www.sec.gov/Archives/edgar/data/1568820/000139834413002407/fp0007252_13fhr.txt
berkshiremystery Posted May 16, 2013 Posted May 16, 2013 New portfolio out as of 3/31/13. Still about 60% BRK. Added a lot more Vistaprint and XPO Logistics. https://www.sec.gov/Archives/edgar/data/1568820/000139834413002407/fp0007252_13fhr.txt It's easier to watch... http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001568820&HolderName=ARLINGTON+VALUE+CAPITAL%2C+LLC NEW positions: LUK SOLD positions: FFH SD
mhdousa Posted May 16, 2013 Posted May 16, 2013 New portfolio out as of 3/31/13. Still about 60% BRK. Added a lot more Vistaprint and XPO Logistics. https://www.sec.gov/Archives/edgar/data/1568820/000139834413002407/fp0007252_13fhr.txt It's easier to watch... http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001568820&HolderName=ARLINGTON+VALUE+CAPITAL%2C+LLC NEW positions: LUK SOLD positions: FFH SD Wow. That is much easier. Thanks!
merkhet Posted July 5, 2013 Posted July 5, 2013 Can anyone else access the article in the OP? I can't seem to find it...
OracleofCarolina Posted August 14, 2013 Posted August 14, 2013 http://www.sec.gov/Archives/edgar/data/1568820/000139834413003828/xslForm13F_X01/fp0007932_13fhr-table.xml
ASTA Posted August 14, 2013 Posted August 14, 2013 Happy to see he bought CHRW I just bought it today :D
mhdousa Posted August 14, 2013 Posted August 14, 2013 http://www.sec.gov/Archives/edgar/data/1568820/000139834413003828/xslForm13F_X01/fp0007932_13fhr-table.xml Dropped his BRK and BAC holdings by a little bit, sold almost 40% of his LUK, added a good bit of Vistaprint and XPO Logistics, and initiated C.H. Robinson and Innerworkings.
tradevestor Posted August 14, 2013 Posted August 14, 2013 Can anyone else access the article in the OP? I can't seem to find it... You can find it here http://web.archive.org/web/20120215160005/http://www.smartmoney.com/invest/strategies/the-400-man-1328818316857/#printMode
fareastwarriors Posted August 15, 2013 Posted August 15, 2013 Happy to see he bought CHRW I just bought it today :D What's the thesis on CHRW?
ASTA Posted August 15, 2013 Posted August 15, 2013 fareastwarriors I am not smart enough to make a whole thesis on CHRW Dave Sather is president and founder of the Sather Financial Group, Made a 1h presentation on MOI on this. Basically saying its a slow 8% grower for the next 10 years.
JBird Posted August 15, 2013 Posted August 15, 2013 Any glaring reasons for selling 40% of LUK stake, a position that was just opened last quarter?
mhdousa Posted August 15, 2013 Posted August 15, 2013 Any glaring reasons for selling 40% of LUK stake, a position that was just opened last quarter? Allan is on here and posts rarely. Maybe he'll respond to a PM.
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