What are you buying today?

[giofranchi]

I am buying FFH today, and I'll be buying BH in two weeks (if its price stays this low or is lower).

 

Cheers,

 

Gio

[kirkomi]

Sold out of SEC.TO and bought QVAL.

 

You are jumping around quite a bit frommi. PKX -> SEC.TO -> QVAL.

 

 

[Guest 50centdollars]

Buying IRG:TSE

[frommi]

Sold out of SEC.TO and bought QVAL.

 

frommi,

 

Just curious why sold out of SEC.TO? 

 

Regarding QVAL, do you have a % of your assets in quantitative value funds?  Have you looked at other funds?

 

Thanks,

 

AtlCDore

 

Because after the discussion and looking at historically P/B ratios for SEC.TO i see a P/B of ~0.6 as fair value of SEC.TO and because it is now close to that number and the stock is so illiquid i wanted to get out on the way up. QVAL is only a small part of my portfolio at the moment, but i can imagine buying more of it because i can compound tax efficient and with a small TER there with a tested value strategy that is proven to beat the market. But in the first place i bought it because i had no other good idea at the moment. But that can change daily.

[frommi]

You are jumping around quite a bit frommi. PKX -> SEC.TO -> QVAL.

 

Yes sorry i have a skittish mind.

[muscleman]

Similar to Frommi, I sold SEC today.

The rational was that when I first bough SEC last month, the USD.CAD rate was above 1.27. Now it is only 1.21, so the NAV per share in CAD should have dropped from 300 to 280.

Then the share price rised from 169 to 180 CAD. Therefore the discount has narrowed quite a bit. :)

I have some other investments that I've been watching for. Maybe I will start buying some soon. :)

[writser]

I estimate that their portfolio is also up ~5% since you bought, the discount hasn't narrowed that much. 3% or something probably.

[DavidVY]

Just bought Chubb.

 

- Quality insurance company that carved out high-end niche.

- Combined ratio of 88-92 most years

- Conservative book (mostly short/medium term bonds). Hedge against interest rates rising as earnings will rise w/interest rates going up.

- 2.28% dividend + 5% share buyback

- P/E of 11.5

 

 

 

 

 

 

[muscleman]

I estimate that their portfolio is also up ~5% since you bought, the discount hasn't narrowed that much. 3% or something probably.

 

That's possible. I didn't closely track their positions. I realized it is likely a PFIC after I bought, so I don't want to hold this for long term anyway.

[randomep]

 

bought ATH:EUPIC a week or two ago

[bookie71]

FBAK just came out with first Q report

http://finance.yahoo.com/news/first-national-bank-alaska-announces-191800856.html

[TwoCitiesCapital]

I estimate that their portfolio is also up ~5% since you bought, the discount hasn't narrowed that much. 3% or something probably.

 

That's possible. I didn't closely track their positions. I realized it is likely a PFIC after I bought, so I don't want to hold this for long term anyway.

 

Is there a reason all this PFIC talk just blew up in the last few months? I'd never heard of this old, arcane tax rule and all of the sudden it seems like everyone and their mother is concerned about investments being PFICs, how to strategically do their taxes for PFICs, if PFICs can be held in IRAs, and if they're allowed in ERISA accounts, etc. etc. etc. I don't mean to derail the thread, but from what I could this isn't a new rule and I'm just trying to understand all of the recent interest that wasn't relevant a year ago?

[gfp]

This quote from a site below kind of sums up why US investors are just recently worrying about it.  There were changes in the last few years that alerted folks to the issue --

 

"The FATCA legislation not only requires new self-reporting on PFICs and other foreign held financial assets, but also requires all “foreign financial institutions” to report on the assets held by U.S. citizens and U.S. permanent residents directly to the IRS by 2014.  While it may seem hard to believe that foreign financial institutions would willingly comply with such reporting requirements, the fact is that industry observers expect nearly universal compliance with the new rules by banks, brokerages, insurance companies, mutual funds (anything “financial”) around the world, because of the severe sanctions the FATCA law imposed on non-compliant financial institutions.  The point is that all U.S. citizens must assume that as of 2014, the IRS will have a direct and easily accessible window onto their holdings in foreign financial institutions. It will be easy to cross-reference direct reports by these institutions to the IRS with self-filed form 8938 and 8621 and determine whether or not your PFIC investments have been properly reported and the tax properly calculated and paid."

 

http://thunfinancial.com/why-americans-should-never-ever-own-shares-in-a-non-us-incorporated-mutual-fund/

[valueinvesting101]

GM/WS/B

[james22]

I am buying FFH today...

 

Reflect your belief that is attractively priced? Or are dollar-cost averaging?

[giofranchi]

I am buying FFH today...

 

Reflect your belief that is attractively priced? Or are dollar-cost averaging?

 

I think it is attractively priced… As a very long term investment and if a more difficult environment awaits us.

 

In case something goes wrong with this global deleveraging, and we actually get to see deflation or a stock market that goes down and stays down for some time (or both), FFH imo might truly succeed in compounding at 15% annual.

 

If FFH compounds at 15% annual, there is no reason why 10 years from now it won’t trade at the same multiple it is trading today. This of course would mean a 15% CAGR for my investment.

 

Of course it won’t happen if central banks succeed in resolving our debt situation without any harmful consequences, and if the stock market keeps marching upward undisturbed.

 

Gio

 

[simplefocus]

NRCIB

 

It should be trading at 6x of A shares (NRCIA).. huge mispricing.

 

[rpadebet]

NRCIB

 

It should be trading at 6x of A shares (NRCIA).. huge misprice.

 

Its been like this for a while now and for good reason...

http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/nrcibnrcia-interesting-2-class-structure/msg216349/#msg216349

[Ross812]

Added to Altius and Amex.

 

Bought a new position: HOG

[sleepydragon]

Added to Altius and Amex.

 

Bought a new position: HOG

 

Why HOG? It seems a dying business. Younger people dont buy HOG and current fans are retiring.

[frommi]

Sold Intralot and AIQ and started my summer hedging program. Bought Gold, TLT, IWM Puts and shorted XBI. Still hold FFH, OUTR and NWH.AX.

I just can`t get rid of the bear inside of me, i have that nagging feeling that the bull market ends this summer with at least a 20% correction. Its about time.

[netnet]

I am buying FFH today...

 

Reflect your belief that is attractively priced? Or are dollar-cost averaging?

 

I think it is attractively priced… As a very long term investment and if a more difficult environment awaits us.

 

In case something goes wrong with this global deleveraging, and we actually get to see deflation or a stock market that goes down and stays down for some time (or both), FFH imo might truly succeed in compounding at 15% annual.

 

If FFH compounds at 15% annual, there is no reason why 10 years from now it won’t trade at the same multiple it is trading today. This of course would mean a 15% CAGR for my investment.

 

Of course it won’t happen if central banks succeed in resolving our debt situation without any harmful consequences, and if the stock market keeps marching upward undisturbed.

 

Gio

 

You like it at current price/ book?.  If that is so, I will wait for the reputed " post Gio buying, drop in price" to buy some 8)

[Valuebo]

Sold Intralot and AIQ and started my summer hedging program. Bought Gold, TLT, IWM Puts and shorted XBI. Still hold FFH, OUTR and NWH.AX.

I just can`t get rid of the bear inside of me, i have that nagging feeling that the bull market ends this summer with at least a 20% correction. Its about time.

 

Damn, you really have a skittish mind!  ;) Selling dimes on the dollar imo for a market correction that might happen and could impact the stock price of your stocks.

 

Bought some EUROB last week sub $0.10 and more NTLS below $4.5 a few weeks ago. Corrections be damned! They are the reason I buy anything in the first place.

[Ross812]

Added to Altius and Amex.

 

Bought a new position: HOG

 

Why HOG? It seems a dying business. Younger people dont buy HOG and current fans are retiring.

 

HOG sells ~40% of their bikes overseas and the strong dollar is hurting their foreign business right now. International growth is still intact and their domestic growth, though slow, is positive. This has been the case since 2005. Q1 '15 was weak and the stock sold off. The market is taking Q1 as the start of the real decline of the brand and is pricing it at a PE and P/FCF lower than any period over the last ten years aside from 2009.

 

As for the future of the brand: I'm not sure HOG doesn't have young fans. Their bikes are expensive and young people cannot afford to buy them. The 20 and 30 somethings zipping around on crotch rockets are going to trade them in one day for something comfortable. The 20-30 somethings that give up their bikes will still have a midlife crisis in their 50's and go out and buy a bike. I really cannot think of a brand with a stronger following. I wonder how many hippies in the 60 and 70's were buying hogs? A bunch of those hippies own Harleys now...

[frommi]

Damn, you really have a skittish mind!  ;) Selling dimes on the dollar imo for a market correction that might happen and could impact the stock price of your stocks.

 

Bought some EUROB last week sub $0.10 and more NTLS below $4.5 a few weeks ago. Corrections be damned! They are the reason I buy anything in the first place.

 

Perhaps i do it wrong, but thats the way i can sleep at night. I will probably never post a year with a return of >50%, but i am pretty sure that i will never post a year with a 30-50% loss either.

With Intralot i fear the GR-Exit and the loss of the high margin contracts in Romania?/Greece they mentioned in the last call. Made me think about what i really understand of that business.

AIQ may be worth holding, but i didn`t want to lose my profits and i was not sure if i am mentally able to hold it when they tank below 19$ and they are not able to grow EBITDA. (or even worse) And i really hate how the stock price has moved, there is a big barrier around 25/26$ now.

 

The next stocks i buy will be better businesses with growth, a moat and where i truly understand the business, that gives me a lot more confidence to hold for longer.  (And especially over the summer).