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Posted

Hi Sanjeev

 

Is it BAC.. I know you love stress test results ;D

 

Incidentally, you guys are being too hard on Moore.  He's premature...that's what she said...I couldn't resist...but not necessarily wrong. 

 

When you can't find something, hold cash.  When you find something, buy it.  We have lots of cash because I couldn't find stuff that I could commit to and liked.  But for the last three days, I've been buying alot of one stock...so there you go.  Things can change in a hurry in this business...you have to be flexible.  Cheers!

Posted

Incidentally, you guys are being too hard on Moore.  He's premature...that's what she said...I couldn't resist...but not necessarily wrong. 

 

When you can't find something, hold cash.  When you find something, buy it.  We have lots of cash because I couldn't find stuff that I could commit to and liked.  But for the last three days, I've been buying alot of one stock...so there you go.  Things can change in a hurry in this business...you have to be flexible.  Cheers!

 

SD?

 

Yup!  Cheers!

Posted

Still think we'll see tbv for BAC upon news of stress tests, Sanjeev?:)

Even if we get to .90% tbv that is a 10% return from here.

 

I can't see anything but good news for the banks after the stress tests.  I think WFC will increase its dividend again and buy back even more shares.  I think BAC will issue at least $7B in dividends and buybacks, while still maintaining the highest Tier 1 Common Equity under Basel III.  U.S. Banks will have another record year in 2013.  WFC will go over $40 this year, and BAC will go over $15.  Cheers!

Posted

Sanjeev,

 

What is your technique to buy stocks? If you could provide roughly how much AUM you have now would also help.

 

Personally, I tend to buy a full position in one or two days when I like the price and that liquidity is plenty or like at SD. It is often painful to see the drop that usually comes afterwards, but like flipping a coin, it may go up as well and I will have to pay more or never getting my fill.

 

Cardboard

Posted

Sanjeev,

 

What is your technique to buy stocks? If you could provide roughly how much AUM you have now would also help.

 

Personally, I tend to buy a full position in one or two days when I like the price and that liquidity is plenty or like at SD. It is often painful to see the drop that usually comes afterwards, but like flipping a coin, it may go up as well and I will have to pay more or never getting my fill.

 

Cardboard

 

We're still small...$6M now.  We usually build up the position over a week, and it just keeps increasing as prices fall...we love it when prices fall! 

 

We don't add unless the price falls below the last previous buy, and it's a judgement call based on my instincts.  Some things are very undervalued, so we go in very hard each buy...like BAC or DELL was.  Some things are undervalued, but don't keep falling to distressed levels...like AAPL...so not as hard and we are very patient. 

 

A full position is 12-15%, and if it is really, really cheap with a decent margin, we go to 25% of the fund.  Nothing in the fund is anywhere near 25% right now, but we have two positions between 12-15%.  We are still about 33% cash.  Cheers!

Posted

Sanjeev,

 

What is your technique to buy stocks? If you could provide roughly how much AUM you have now would also help.

 

Personally, I tend to buy a full position in one or two days when I like the price and that liquidity is plenty or like at SD. It is often painful to see the drop that usually comes afterwards, but like flipping a coin, it may go up as well and I will have to pay more or never getting my fill.

 

Cardboard

The question was directed at Sanjeev but I personally purchase a small tracking position and go from there. FYI I purchased a small tracking position in SD today as well. It's just so damn cheap...we'll have to see what the market does with it the next few days/weeks.

Posted

So....y'all were saying what?

 

Bro you don't get it. Some people have psychic powers and can day trade with accuracy. You and I need to learn to listen to them.

Posted

LOL at this thread. Pointless.

 

I'm quoting myself because I still think the above. If you're going to forecast weekly / monthly stock price movements, yikes.

Posted

LOL at this thread. Pointless.

 

I'm quoting myself because I still think the above. If you're going to forecast weekly / monthly stock price movements, yikes.

Buffett said it: he can't predict how the operating businesses he OWNS will do in a month, how anyone thinks they can do so for the stock market is beyond me.

Posted

LOL at this thread. Pointless.

 

I'm quoting myself because I still think the above. If you're going to forecast weekly / monthly stock price movements, yikes.

 

 

I agree 100%.  I wish people would just put it back in their pants...I really don't care how big it is.

Posted

I might post just Buffett recent quote from the 2012 Annual Report....

 

---

 

Since the basic game is so favorable, Charlie and I believe it’s a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of “experts,” or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it.

 

 

 

 

Posted

As Becky Quick rightly pointed out to Buffett when discussing the current market, Buffett is already prepared for a market decline with copious amounts of cash on hand plus more flowing in every month. He is already hedged.

 

Just as Moore was oddly pounding his chest after a one-day 1.8% decline, it is equally as odd that bulls would be encouraged by a mere 3% move off the 1495 bottom.....

Posted

All the market noise I see suggests that most observers are skeptical about any rally. I don't hear many people going crazy. All I read is skepticism. So I'm skeptical this is irrational exuberance.

Posted

Institutional money managers being fully invested, with margin no less, is going crazy. Every time we've had a market top in the last three years, everyone has said "this is the most hated rally ever". Obviously there is something out there that ultimately drives the market down - it only makes sense that when everyone is all-in, that there are few if any buyers left..... yes the market can flop around 3 to 5% in either direction, but I don't see how those moves are material when the risk is for a 15 to 20% correction.

Posted

Straw man.

 

As Becky Quick rightly pointed out to Buffett when discussing the current market, Buffett is already prepared for a market decline with copious amounts of cash on hand plus more flowing in every month. He is already hedged.

 

Just as Moore was oddly pounding his chest after a one-day 1.8% decline, it is equally as odd that bulls would be encouraged by a mere 3% move off the 1495 bottom.....

Posted

Straw man.

 

As Becky Quick rightly pointed out to Buffett when discussing the current market, Buffett is already prepared for a market decline with copious amounts of cash on hand plus more flowing in every month. He is already hedged.

 

Just as Moore was oddly pounding his chest after a one-day 1.8% decline, it is equally as odd that bulls would be encouraged by a mere 3% move off the 1495 bottom.....

 

Let me rephrase....

 

Just as Moore was oddly pounding his chest after a one-day 1.8% decline, it is equally as odd that some here would feel the need to roll out quotes regarding the perils of market timing after a mere 3% move off the 1495 bottom....

Posted

I find I am getting an inordinate amount of "where's the market headed" questions recently. I'm not sure what to make of it other than it being incredibly annoying.

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