On Continuous Compounding

A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how humans … Continue reading On Continuous Compounding →

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 →

The Greek Organization of Football Prognostics (OPAP)

Article on Seeking Alpha (May, 2011): OPAP: A Special Situation in the Sports Industry The Greek Organisation of Football Prognostics (OPAP) The Greek Organization of Football Prognostics is one of the companies that is being put up for privatization by the Greek Special Secretariat for Asset Restructuring and Privatisations (SSARP). So an investment thesis for OPAP … Continue reading The Greek Organization of Football Prognostics (OPAP) →

Mental Model: Booms, Busts & Fragile Systems

What I hope to collect here is a collection of resources that handle the historical representation of the booms and busts of fragile financial systems. Articles & presentations "Who´s Holding the Bag" by Pershing Square Capital Management (May 2007) "The Age of Balance Sheet Recessions: What Post-2008 U.S., Europe and China Can Learn from Japan … Continue reading Mental Model: Booms, Busts & Fragile Systems →

Leucadia National Corporation

Leucadia was run by two high-quality capital allocators, known for their ability to find value-oriented investment opportunities in distressed companies. Ian Cumming and Joseph Steinberg were able to compound the equity of Leucadia during a period of over 20 years, at rate of around 20% per annum. Due to the nature of the corporate strategy, … Continue reading Leucadia National Corporation →

Profile: Black Diamond Inc.

Black Diamond Inc (BDE) is a reverse merger stock as two operating companies, Black Diamond Equipment and Gregory Backpacks, were aquired by a registered shell company Clarus Corp, that had previously sold its software operations. In a letter to shareholders from May 2010, chairman Warren B. Kanders states: After a long and thorough process of … Continue reading Profile: Black Diamond Inc. →

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 →