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What are you buying today?


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Agreed, enjoyed the writeup. I've been accumulating a position as well. 

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AAPL and NOV

 

Compoundinglife -- can you elaborate a bit more on NOV?  I've taken a look at the company and it looks very interesting.  However, I struggle with trying to come up with a (rough estimate) of NOV's earnings power.  You know, just dealing with the meteoric rise in profits over say the last 10 years -- a more than 10-fold increase -- is a bit daunting.

 

Also, I notice that while gross and operating margins are very high, the company's RoE is less impressive (10-12% 10-year average).  Presumably the reason is the goodwill created by their acquisitions, which would seem to have enormously helped in creating their pre-eminent position in the industry.  However it begs the question whether they've overpaid for deals and whether they feel a need to continue the acquisition strategy for years into the future.  What are your thoughts on that?

 

Finally, everything you read about NOV mentions their high market shares (NOV = No Other Vendor).  Have you been able to do any channel checks or to speak to any industry guys?  I'd be really interested to know whether this is just company spin, or whether there truly are high barriers for competitors?

 

[sorry, not trying to hijack this "What are you buying today?" thread.  Anyone want to volunteer starting a NOV investment idea thread?  I'm sure there would be lots of interest in it.]

 

Thanks

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AAPL and NOV

 

Compoundinglife -- can you elaborate a bit more on NOV?  I've taken a look at the company and it looks very interesting.  However, I struggle with trying to come up with a (rough estimate) of NOV's earnings power.  You know, just dealing with the meteoric rise in profits over say the last 10 years -- a more than 10-fold increase -- is a bit daunting.

 

Also, I notice that while gross and operating margins are very high, the company's RoE is less impressive (10-12% 10-year average).  Presumably the reason is the goodwill created by their acquisitions, which would seem to have enormously helped in creating their pre-eminent position in the industry.  However it begs the question whether they've overpaid for deals and whether they feel a need to continue the acquisition strategy for years into the future.  What are your thoughts on that?

 

Finally, everything you read about NOV mentions their high market shares (NOV = No Other Vendor).  Have you been able to do any channel checks or to speak to any industry guys?  I'd be really interested to know whether this is just company spin, or whether there truly are high barriers for competitors?

 

[sorry, not trying to hijack this "What are you buying today?" thread.  Anyone want to volunteer starting a NOV investment idea thread?  I'm sure there would be lots of interest in it.]

 

Thanks

 

There is a thread in the general discussion area. I can respond there:

 

http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/national-oilwell-varco/

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  • 2 months later...

Combining this with another recent thread "Strategies for Patience". I have GTC orders for Fairfax at $345. Markel for $440. Bidvest for $39. Plus I've gone to Maui for a month so I got further away from the noise.

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Combining this with another recent thread "Strategies for Patience". I have GTC orders for Fairfax at $345. Markel for $440. Bidvest for $39. Plus I've gone to Maui for a month so I got further away from the noise.

  I'm hoping to open a position in Markel as well.  I was hoping some chop in earnings with the Alterra integration would provide an opportunity, but I suppose a potential panic about Chinese credit might work just as well! 
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In the last couple of weeks we've been buying more cash and more index puts.  Not much upside if the market goes up. but our portfolio could actually increase in value if the market takes a dive because of the quality of our main holdings.  :)

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I have 10%+ positions already but I would like to add to these again at those prices. Have already been adding to LRE:XLON. These seem like pretty much no brainer long term positions. I had been taking some profits and building cash lately so this market selloff is nice.

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A rope.  With the market crashing it's pretty clear life is just about over.  Not much to live for with all the carnage out there.  This is terrible.

 

I agree!! That's why I ran off. A last gasp of fresh air before the meltdown.

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A rope.  With the market crashing it's pretty clear life is just about over.  Not much to live for with all the carnage out there.  This is terrible. 

 

That's a tough way to go, especially if you're not careful to do it right and you end up just blocking your airways and suffocating slowly to death.  You could do the Kurt Cobain thing, but even though that is quick it is messy.  May I recommend picking up a purple blanket, Nike sneakers, sleeping pills, and make some vodka jello shots.  The last people to use this method went with smiles still on their faces. 

 

There is always harakiri, it may be slow, painful and messy, but it is cool and will have people talking about it for a long time.

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Thank you for the suggestions.  All very helpful.  So how are others dealing with this?  We are down double digits in basis points now!  So crazy.  I am not sure what will become of all of us.  Will the sun rise tomorrow?  Will Kanye and Kim have another kid and perhaps point him to the east or south?  So many questions, so little time.

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Thank you for the suggestions.  All very helpful.  So how are others dealing with this?  We are down double digits in basis points now!  So crazy.  I am not sure what will become of all of us.  Will the sun rise tomorrow?  Will Kanye and Kim have another kid and perhaps point him to the east or south?  So many questions, so little time.

 

I think their child may be the anti-Christ!  If the U.S. ever faces its demise like Greece, Rome or the British Empire, it will sprout from the loins of the Kardashians!  ;D  Cheers!

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Like I read somewhere from some guy something like this "When the tide goes out you find out who is still wearing swim trunks". The image is one where it might cause some to use that rope.

  Then someone also said this which with patience might be an alternative. Buy cheap and something good might happen.

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