Margin of Safety » butts booze bets and bombs http://amarginofsafety.com "...to distill the secret of sound investment into three words..." Fri, 26 Jun 2020 18:44:00 +0000 en hourly 1 http://wordpress.org/?v=3.2 Profoundly Unpopular: Finding Bargains Among the Unloved or Unknown http://amarginofsafety.com/2015/02/13/profoundly-unpopular-finding-bargains-among-the-unloved-or-unknown/?utm_source=rss&utm_medium=rss&utm_campaign=profoundly-unpopular-finding-bargains-among-the-unloved-or-unknown http://amarginofsafety.com/2015/02/13/profoundly-unpopular-finding-bargains-among-the-unloved-or-unknown/#comments Fri, 13 Feb 2015 20:22:54 +0000 Ray Galkowski, CFA http://amarginofsafety.com/?p=1850 Continue reading →]]> Jason Zweig has produced another excellent column exposing truths that hide in plain sight. If you want to buy a dollar of free cash flow for less than one dollar, you are probably not going to find it among the companies that everyone wants to own. Instead, you will need to hold your nose and pick among the “profoundly unpopular” and hold on (or buy more) when they become even more unpopular. In the long run, it works. It works largely because most people cannot do it.

Among my clients’ ten corporate exposures is a gambling-related company (and it’s also a spinoff) and a defense-related company (a spinoff)–the “bets and bombs” components of the “butts, booze, bets and bombs”. PAR previously invested in the butts (UVV) and booze (TAP) and other bomb (NOC) components. It is much easier to find a Margin of Safety in these areas. Enjoy:

http://blogs.wsj.com/moneybeat/2015/02/13/sin-vestors-can-reap-smoking-hot-returns/?mod=djintinvestor_t

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