An article by Nassim Taleb and Mark Spitznagel on the current state of banking and the issue of managment compensation: "Of course, before being bailed out by governments, banks had never made any return in their history, assuming that their assets are properly marked to market. Nor should they produce any return in the long … Continue reading Nugget: Taleb on Banking
Category: Fundamental Finance
Nugget: Pabrai on risk and uncertainty
There is a quite interesting interview with Monish Pabrai on Forbes online, in which is talks, amongst other topics, about the entreperneurial approach to risk and uncertainty. I very much share is views as there is a vital difference between risk and uncertainty. Here is an excerpt from the interview: Forbes: "Does this tie into … Continue reading Nugget: Pabrai on risk and uncertainty
Leucadia Management on Net Operating Loss (NOL) and Deferred Tax Assets
Leucadia National Corporation was a New York based holding company, founded by the acclaimed value investors Ian Cumming and Joseph Steinberg. After a merger with Jeffries Bank and the retirement of Cumming and Steinberg, the holding company was renamed into Jeffries Financial Group. Turnaround Investors To most Value Investors, Leucadia is a household name. As … Continue reading Leucadia Management on Net Operating Loss (NOL) and Deferred Tax Assets
Buffett on Nebraska Furniture Mart
In his letters to shareholders, Warren Buffett has frequently talked about Nebraska Furniture Mart and its business model. Here are the essential quotes: 1983 About 67 years ago Mrs. Blumkin, then 23, talked her way past a border guard to leave Russia for America. She had no formal education, not even at the grammar school … Continue reading Buffett on Nebraska Furniture Mart
Nugget: Adidas CFO on Capital Allocation
From the adidas 2Q2011 earnings call Q&A session, available at SeekingAlpha.com: Chris Svezia – Susquehanna Financial Group LLP "And the third question would be the use of your cash. If you keep your run rate of the declining net debt, you’re going to be net cash positive by the end of the year. Any thoughts … Continue reading Nugget: Adidas CFO on Capital Allocation
Nugget: Fairfax aquires 35% of Bank of Ireland
From an interesting article in The Globe and Mail: "Fairfax sent a team to Dublin about two weeks ago to comb through the bank’s loan books and question its credit people. Mr. Watsa met with the bank’s management, and came away believing that, with a recapitalization, Bank of Ireland chief executive officer Richie Boucher would … Continue reading Nugget: Fairfax aquires 35% of Bank of Ireland
Nugget: Jarden plans expansions of Marmot Outdoor Brand
From Reuters: "All this is benefiting Jarden that sells a host of outdoor gear like camping tents, sleeping bags and baseball bats, under brands such as Coleman, K2, Rawlings and Aero. Revenue from outdoor products, including camping and sports goods, rose 11 percent to $772.8 million. "(The outdoor business) has done well, both because people … Continue reading Nugget: Jarden plans expansions of Marmot Outdoor Brand
Nugget: Jeremy Grantham Quarterly Letter – Resource Limitations 2
Read the complete letter (Grantham July 2011-1) "The Devil and the Farmer The Devil, disguised as an innocent agent of a large agricultural company, arrives at a typical Midwestern farm. He has come to suggest to the farmer that he engage in more aggressive farming, and he comes, as usual, with a contract. The contract, … Continue reading Nugget: Jeremy Grantham Quarterly Letter – Resource Limitations 2
Nugget: OPAP to get ~50% stake in VLT market
According to Reuters: "Thursday, Greece resubmitted the bill and proposed that OPAP, one of its most valuable assets which is slated for privatisation by the end of the year, will get a licence for 16,500 gaming machines out of a total of 35,000 to be awarded across the country. "Allowing the operation of gaming machines … Continue reading Nugget: OPAP to get ~50% stake in VLT market
Nugget: On Madison Square Garden Real Estate
From an article by Elliot Brown of the New York Observer: Given that Vornado owns essentially half the neighborhood surrounding Madison Square Garden, and Related is its 50-50 joint venture partner in Moynihan, if the two were able to get their hands on those air rights, they would be able to (eventually) remake the midtown … Continue reading Nugget: On Madison Square Garden Real Estate