What are you buying today?

[boilermaker75]

Sold all IBM shares of my parents and bought Berkshire Hathaway shares.  ;)

 

It's good deed for your parents today, Charlie.

 

- - - o 0 o - - -

 

Added to BRK.B today, too.

 

My largest position by far is BRKB, so I am not looking to add unless BRKB comes down some. So I wrote some June 16 expiration, 160-puts for $1.40. Kind of like a limit order that pays me if it does not execute.

[sleepydragon]

added AXP

[Nebraska]

Added to BRK.B

[Artha158]

Wrote some CBI put.

[longlake95]

BRK.b

[Spekulatius]

UPS

[Lance]

Macy's

 

Thanks

Lance

 

[flesh]

I can't find anything to buy last few months. First time I've gone so long without any ideas. I'm debating whether or not to simply add to companies selling at relatively low multiples with high tax rates that have less downside and are less economically sensitive. It's funny because I've actually become a bit depressed about the lack of ideas. If anyone can inform me or something worth digging in to I'd appreciate it.

[Guest Schwab711]

I can't find anything to buy last few months. First time I've gone so long without any ideas. I'm debating whether or not to simply add to companies selling at relatively low multiples with high tax rates that have less downside and are less economically sensitive. It's funny because I've actually become a bit depressed about the lack of ideas. If anyone can inform me or something worth digging in to I'd appreciate it.

 

My minimum standards have deteriorated drastically since 2013 or so when I first wrote them down. A friend's email from the other day made me realize how many of my "rules" I'm breaking at the moment. I will probably be raising more cash in the near future. I've been above 10% cash for at least 2 straight years now. I am right there with you. No good ideas and my current holdings are not ideal.

[clutch]

I can't find anything to buy last few months. First time I've gone so long without any ideas. I'm debating whether or not to simply add to companies selling at relatively low multiples with high tax rates that have less downside and are less economically sensitive. It's funny because I've actually become a bit depressed about the lack of ideas. If anyone can inform me or something worth digging in to I'd appreciate it.

 

My minimum standards have deteriorated drastically since 2013 or so when I first wrote them down. A friend's email from the other day made me realize how many of my "rules" I'm breaking at the moment. I will probably be raising more cash in the near future. I've been above 10% cash for at least 2 straight years now. I am right there with you. No good ideas and my current holdings are not ideal.

 

Because I couldn't find good ideas within my typical investing framework, and to make use of the excess cash, I have started looking into m&a arbitrage opportunities for short-term returns. It is a new area for me (and fully knowing that I could screw up) but trying to learn from the experience and hoping to make some returns until I can find better ideas...

[winjitsu]

 

Because I couldn't find good ideas within my typical investing framework, and to make use of the excess cash, I have started looking into m&a arbitrage opportunities for short-term returns. It is a new area for me (and fully knowing that I could screw up) but trying to learn from the experience and hoping to make some returns until I can find better ideas...

 

 

+1. I'm mostly doing shorter duration, greenblatt style event-driven trades (m&a arb, liquidations, spin-offs). I've been picking through a lot of bankruptcies as well ... Contura Energy and Vistra Energy come to mind. 

[Ballinvarosig Investors]

I can't find anything to buy last few months. First time I've gone so long without any ideas. I'm debating whether or not to simply add to companies selling at relatively low multiples with high tax rates that have less downside and are less economically sensitive. It's funny because I've actually become a bit depressed about the lack of ideas. If anyone can inform me or something worth digging in to I'd appreciate it.

 

My minimum standards have deteriorated drastically since 2013 or so when I first wrote them down. A friend's email from the other day made me realize how many of my "rules" I'm breaking at the moment. I will probably be raising more cash in the near future. I've been above 10% cash for at least 2 straight years now. I am right there with you. No good ideas and my current holdings are not ideal.

 

Because I couldn't find good ideas within my typical investing framework, and to make use of the excess cash, I have started looking into m&a arbitrage opportunities for short-term returns. It is a new area for me (and fully knowing that I could screw up) but trying to learn from the experience and hoping to make some returns until I can find better ideas...

I am in the exact same situation. I already had a high cash position going into the year at 35%, I really don't want to have all this money sitting there earning nothing. I feel the market as a whole is just too expensive, so I have been kind of compelled to get involved in various special situations. I own a large basket of special situation stocks, so the risk isn't too bad and it's generally worked out ok, but some of it has been real seat of the pants stuff. I own LXB and LSR, two small liquidating property companies in the UK. I know UK property is expensive and these are at a discount to NAV. I own a company going private called Ensor, who have promised to sell their assets after completely delisting from the UK stock exchange - extremely hairy. I own a cash rich oil company called Bowleven who have just kicked out management and appointed unknowns. I owned Argo, a UK asset manager trading below NAV that own some very exotic securities. I owned small amounts of other UK closed end funds that trade at a discount.

 

I have interesting conversations with investors when telling them the kind of things they own...

[flesh]

At the low last year I had 75% net worth in stocks, currently 30%  :'(

 

There's always great opportunities somewhere but where that place is confounds me.

Feeling out of step with this market. Nothing moves. It seems absent something extreme and obscure happening things will be frozen until tax reform is finalized.

 

I told two of my neighbors in the last couple weeks I'd buy there house, at appraisal value, no realtors fee's whenever they are ready to sell. I wasn't sure how to phrase this without them frowning on the offer, oh well.

 

The one place I've been finding opportunity lately is real estate. Basically I find areas where it's against city covenants for more than one single family (based on blood relatives) to live in a home and yet in certain areas in these markets this is abused, everyone is doing it, the street is littered with cars etc. Hopefully, it isn't enforced, I know the areas and it hasn't been for a decade so......

 

Then I find homes with mother in law apt like situations, basically, they are separable, and I rent it to two separate renters, only allowing single people to live there without pets, and I give em a bit of a deal so they are happy. This ensures there aren't any extra cars in the streets and insulates me a bit.

 

Basically you get a duplex without duplex pricing.

 

Say the house costs 300k, 60k down, you rent one unit for 1500 and the other for 1000, your payment is around 1400. Depending on up keep and vacancy, you do quite well. If there's appreciation, that's a huge bonus. I happen to live where the birth rate is top five in the nation which bodes well for future prices.

 

Anyways, I guess that's my addition to this what are you buying thread, lol.

 

 

[Jurgis]

Although I somewhat agree with "I can't find anything to buy" crowd, I still wonder why not:

 

BRK

FFH

BAC/JPM

AAPL

Some Liberties (but need DD)

 

None of these are supercheap, but all probably can provide ~10% return long term.

 

My "I can't find anything to buy" is that very few stocks seem to be better risk/reward than the ones above. And very few (almost none) offer 15%+ long term return.

 

(This possibly needs to be moved to a new thread).

[flesh]

Although I somewhat agree with "I can't find anything to buy" crowd, I still wonder why not:

 

BRK

FFH

BAC/JPM

AAPL

Some Liberties (but need DD)

 

None of these are supercheap, but all probably can provide ~10% return long term.

 

My "I can't find anything to buy" is that very few stocks seem to be better risk/reward than the ones above. And very few (almost none) offer 15%+ long term return.

 

(This possibly needs to be moved to a new thread).

 

 

None of them meet my buy thresholds at today's prices.

[SlowAppreciation]

Although I somewhat agree with "I can't find anything to buy" crowd, I still wonder why not:

 

BRK

FFH

BAC/JPM

AAPL

Some Liberties (but need DD)

 

None of these are supercheap, but all probably can provide ~10% return long term.

 

My "I can't find anything to buy" is that very few stocks seem to be better risk/reward than the ones above. And very few (almost none) offer 15%+ long term return.

 

(This possibly needs to be moved to a new thread).

 

That's pretty much 60% of my invested portfolio (but have ~35% cash overall)

[Paarslaars]

Although I somewhat agree with "I can't find anything to buy" crowd, I still wonder why not:

 

BRK

FFH

BAC/JPM

AAPL

Some Liberties (but need DD)

 

None of these are supercheap, but all probably can provide ~10% return long term.

 

My "I can't find anything to buy" is that very few stocks seem to be better risk/reward than the ones above. And very few (almost none) offer 15%+ long term return.

 

(This possibly needs to be moved to a new thread).

 

My guess would be, with the market at such heights, most people estimate they can pick up these quality stocks cheaper in the upcoming years.

These are good stocks for people investing OPM in a low/medium risk fund or are living off their investments and cannot handle a lot of risk.

But like flesh said, as a value investor you want a substantial discount and I don't think these stocks are offering that at the moment.

 

I've held most on that list, currently only have BRK left.

 

Ontopic: sold KONA and added some extra DEST on Friday. Have been adding PWE on occasions when it dropped below 1.5$, currently my third largest position.

[StevieV]

Although I somewhat agree with "I can't find anything to buy" crowd, I still wonder why not:

 

BRK

FFH

BAC/JPM

AAPL

Some Liberties (but need DD)

 

None of these are supercheap, but all probably can provide ~10% return long term.

 

My "I can't find anything to buy" is that very few stocks seem to be better risk/reward than the ones above. And very few (almost none) offer 15%+ long term return.

 

(This possibly needs to be moved to a new thread).

 

My guess would be, with the market at such heights, most people estimate they can pick up these quality stocks cheaper in the upcoming years.

These are good stocks for people investing OPM in a low/medium risk fund or are living off their investments and cannot handle a lot of risk.

But like flesh said, as a value investor you want a substantial discount and I don't think these stocks are offering that at the moment.

 

I've held most on that list, currently only have BRK left.

 

Ontopic: sold KONA and added some extra DEST on Friday. Have been adding PWE on occasions when it dropped below 1.5$, currently my third largest position.

 

 

I am a little wary of buying a basket of stocks you think will achieve 10%.  A reasonable chance of falling short.  Of those on the list above, I am most familiar with Berkshire.  I don't know that BRK is an solid 10% return.  At the annual meeting, Warren said he thought they could do 10% if interest rates rise.  I think that if you want 10% CAGR over the next 10 years for BRK, you should look to buy at 1.3 book or better.  That should give you some multiple expansion tailwind.

 

Apple is a juggernaut, but I think it is really difficult to figure where they'll be at over the medium-longer term.  Will the iPhone still be the vital device?  I think the margin of safety with Apple really has gone away with the recent price rise.

 

Glad to see Paarslaars in PWE.  I have added a few shares in the past month.  I have also started a position in CPG recently.  I continue to think oil will settle into a little bit of a higher range and that there will not be a BAT or other unfavorable tax on Canadian oil and gas companies.

 

That being said, it is taking longer than I thought.  I think PWE and other Canadian oil and gas names could have a nice summer.  I wouldn't be surprised to see PWE back at $2 USD in a couple months.  We'll see if that is the case or if I continue to be overly optimistic.

[sleepydragon]

Why Buffett thinks Berkshire will do better in higher interest rate (but he also said higher interest rate is not good for stock mkt)?

[Nebraska]

Add to BAM

[no_free_lunch]

Why Buffett thinks Berkshire will do better in higher interest rate (but he also said higher interest rate is not good for stock mkt)?

 

I am just speculating but:

- his bank holdings will make higher net income as long as rates rise gradually

- his operating companies are very lightly leveraged relative to peers.  So interest rates will hurt the profitability of peers which should provide some competitive advantage.

[gfp]

Higher interest rates would bring down negotiated prices for whole businesses and reduce the competitiveness of leveraged buyout firms competing against him for acquisitions of whole companies.  Berkshire is a buyer of assets and businesses over time, higher interest rates are better for the buyer.

 

On the former, above, it could mean the difference between making big deals or not being able to - which is ultimately what will determine his ability to compound at 10% over time.  The machine doesn't work if he can't buy large businesses, unless he is able to use that capital to aggressively retire BRK shares in the market, which hasn't been offered to him yet - but is possible in the future.

 

Why Buffett thinks Berkshire will do better in higher interest rate (but he also said higher interest rate is not good for stock mkt)?

 

I am just speculating but:

- his bank holdings will make higher net income as long as rates rise gradually

- his operating companies are very lightly leveraged relative to peers.  So interest rates will hurt the profitability of peers which should provide some competitive advantage.

[Artha158]

CAB

[writser]

CAB

 

Interesting, would you mind opening a topic about it or sharing your insights? I've looked at it, spread looks juicy and I am skeptical a $3b takeover of a outdoor sports retailer would be blocked by regulators. Surely Wal-mart, Amazon and local shops sell way more guns, tents and fishing rods than Cabela's and Bass Pro combined? Doesn't seem like a big deal to to me. But I'm a gun shy European, no clue of outdoor sports market dynamics and I'm always a bit wary of regulators (unpredictable) so I haven't pulled the trigger yet. Also, RAD / WBA and ODP / SPLS have been intensely scrutinized so I'm not very confident regarding regulators thinking this deal will be fine.

[kab60]

Redknee Solutions (beaten up Canadian software company, rights offering coming up). Not for the faint of hearts. Looked at it a couple of months back, since been taken to the dumpster, and Greenhaven Road did a write up in his Q1 letter. There's also some decent articles on Seeking Alpha from Valsef Capital (don't know the guys record though). Basically, a privately owned software company (ESW) snatched the company from Constellation Software who had already agreed to buy the company, and now they put in of their turnaround experts to shed unprofitable business from acquisitions, shrink the company and focus.

 

Old shareholders have really suffered and there's lots of dilution coming up, but I really like what I've heard from the new CEO who seems to focus extremely hard on customer satisfaction and expenses ("I'm a real operator, I just don't look at the top items on the expense line, I get down to items costing 5 dollar per month-sorta-thing"). We shall see.