Amit Wadhwaney on Insurance Companies during Crises

Amit Wadhwaney is a former key portfolio manager of Third Avenue Funds, who currently operates his on value-oriented hedge fund under the name Moerus Capital.  At Third Avenue, Amit Wadhwaney led the upstart of the international business at Third Avenue and was the founding manager of the Third Avenue Global Value Fund, LP, the Third … Continue reading Amit Wadhwaney on Insurance Companies during Crises

Fundamental Finance vs Value Investing

Most investors equate Fundamental Finance with Value Investing. Although all value investors are fundamentalists, not all practitioners of fundamental finance can be defined as value investors. Both approaches focus on Security Analysis and the discovery of Intrinsic Value but Fundamental Finance branches into areas such as control situations, distressed and credit investing, as well as … Continue reading Fundamental Finance vs Value Investing

Nugget: Valuation of Unfunded Pension Liabilities

Two companies that I have been following recently - Sears Holding and Post NL - have substantial unfunded pension liabilities. Here are a number of articles covering the subject: "The Value of Control: Implications for Control Premia, Minority Discounts and Voting Share Differentials" by Aswath Damodaran of Stern School of Business, June 2005 "An investment … Continue reading Nugget: Valuation of Unfunded Pension Liabilities

Investing in the Unknown and Unknowable by Richard Zeckhauser

The following excerpt comes from the essay "Investing in the Unknown and Unknowable" by Richard Zeckhauser, an American economist who has built his academic career around the study of risk management, decision sciences, investment, and policy-making under uncertainty. An Alternative View on Risk "From David Ricardo making a fortune buying British government bonds on the … Continue reading Investing in the Unknown and Unknowable by Richard Zeckhauser

Nugget: Banco Santander on Corporate Sponsorship

From the 2010 Annual Review: "Corporate sponsorships continue to be the best platform for enhancing the renown of the brand and consolidating the Bank’s positioning at the international level. The five-year alliance with the Formula 1 Ferrari team has been a complete success. The return on the advertising in the first year covered the investment … Continue reading Nugget: Banco Santander on Corporate Sponsorship

Nugget: Taleb on Banking

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

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