Tag Archives: Short Sales

Is the Market Overvalued?

Great investors tend to focus on investing in one company at a time (bottom up) and ignore macroeconomic and macro-market forcasts (top down), but the CAPE and Tobin’s Q ratio are remarkably good at predicting long-run returns for the US … Continue reading

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Interesting NFLX Comments at D9

Today, Bob Iger: Disney CEO Bob Iger said today at D9 to expect a new Disney.com content site within a year. This “uber network” for the Walt Disney Company will be a home “for people to consume our content directly,” … Continue reading

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LinkedOut–Securities Borrowing and the Inability to Correct Bad Prices

Securities borrowing costs can be a problem when trying to short clearly overvalued businesses (from a Dow Jones NewsPlus story today): The average wholesale rate to borrow LinkedIn was 86% on Tuesday, Astec’s data show. This means that hedge funds seeking … Continue reading

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One Lesson that Starbucks Can Teach Us

Howard Schultz, CEO of Starbucks, has a lesson for investors in Salesforce.com and Netflix:   After decades of breakneck expansion under Mr. Schultz, tight-fisted consumers abandoned it. The company’s sales and share price sank so low (between December 2006 and December … Continue reading

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Bad News: Government Handouts Make Up 35% of All Wages

This is much worse than I thought.  http://www.cnbc.com/id/41969508 Even as the economy has recovered, social welfare benefits make up 35 percent of wages and salaries this year, up from 21 percent in 2000 and 10 percent in 1960, according to … Continue reading

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Invert, Always Invert

Update 6/26/2020: Welcome to the readers of Ozan Varol’s book, Think Like a Rocket Scientist. I don’t know Ozal, but he referenced a blogpost of mine from 2011 in his footnotes for chapter 5 (footnote 47). Thank you Ozal. https://www.amazon.com/gp/product/1541762592/ref=ox_sc_act_title_1?smid=ATVPDKIKX0DER&psc=1 … Continue reading

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High-Priced Businesses: Jason Zweig on Facebook and the PM’s List of High-Priced Companies

Jason Zweig’s column in today’s Wall Street Journal is titled “Why the Fuss over Facebook Doesn’t Make It a Homerun” and it provides fodder for two posts on this blog today. This first post shows that market buzz, such as … Continue reading

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David Einhorn on the Charlie Rose Show (Video)

David Einhorn appeared on the Charlie Rose Show on December 6, 2010. I think Einhorn is a brilliant securities analyst. He has done a remarkable job providing high risk-adjusted returns for over a decade for the limited partners in his … Continue reading

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Whitney Tilson’s T2 Partners LLC November Shareholder Letter…

…courtesy of Gurufocus.com T2 Partners November 2010 Shareholder Letter Continue reading

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The Third Quarter Letter from David Einhorn’s Greenlight Capital

For your reading pleasure–the third quarter letter from David Einhorn’s Greenlight Capital. David is an excellent value-focused, long-short hedge fund manager and his assets have grown quickly due to his stock selection success. That growth has also led David to … Continue reading

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