y0ungmoney.blogspot.com
Young Money: July 2014
http://y0ungmoney.blogspot.com/2014_07_01_archive.html
Saturday, July 26, 2014. Book review: "Rainmaker: The Saga of Jeff Beck" by Anthony Bianco. Jeff Beck was a successful deal-maker on Wall Street during the 1980s. He helped facilitate the leveraged buyout of RJR Nabisco, which made him a minor character in Barbarians at the Gate. Beck was known as "Mad Dog" because of his combat experience during the Vietnam War, and Barbarians. Beck was never one of Wall Street's richest people, but he was possibly its most entertaining. His antics included threaten...
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Young Money: March 2015
http://y0ungmoney.blogspot.com/2015_03_01_archive.html
Tuesday, March 24, 2015. The limits of activist short selling. Last week, The New Yorker. Published an article by James Surowiecki called In Praise of Short Sellers. I have a more skeptical opinion of activist shorting. I don't think it's inherently bad, but neither do I think one can generalize about it the way Surowiecki does. Activist short sellers have. Been financially successful and have. Activist shorting, as it's practiced today, has a few potential flaws:. 2 Over the past few years, activist sho...
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Young Money: April 2015
http://y0ungmoney.blogspot.com/2015_04_01_archive.html
Tuesday, April 21, 2015. Good to Great is a flawed book. One of my first posts on this blog was a harsh review of The Outsiders. In which I claimed that it had the same methodological problems as Jim Collins' Good to Great. After re-reading Good to Great. I realize that comparison was unfair and want to retract it. The Outsiders. Has a problem with survivorship bias, but the methodological flaws in Good to Great. Are both deeper and more numerous. According to Wikipedia, Good to Great. Collins describes ...
y0ungmoney.blogspot.com
Young Money: Twenty-five spinoffs that blew up
http://y0ungmoney.blogspot.com/2015/05/twenty-five-spinoffs-that-blew-up.html
Tuesday, May 19, 2015. Twenty-five spinoffs that blew up. The unionized division of a large trucking company. Its financial condition steadily deteriorated after the spinoff, and it finally went bankrupt in 2002 when couldn't obtain a surety bond it needed to operate. That Reliance had a lot of defaulted loans for which it couldn't locate and repossess the collateral. This was Enron's water unit. It had negative cashflow and problems with big projects in India and Argentina. According to Wikipedi...A spi...
y0ungmoney.blogspot.com
Young Money: Articles of interest
http://y0ungmoney.blogspot.com/2015/07/articles-of-interest.html
Sunday, July 26, 2015. A major Burger King franchisee thinks that 3G overpaid for the company. They received an offer for Burger King that was much more than our group [of buyers] thought the brand was worth. 3G bought it for basically $4.5 billion. The investment groups that originally bought Burger King – Texas Pacific and Goldman Sachs – had only paid like $1.4B. 3G came in and was willing to pay a big premium, $25 a share for Burger King. We were shocked at that. According to The Globe and Mail.
y0ungmoney.blogspot.com
Young Money: Articles of interest
http://y0ungmoney.blogspot.com/2015/05/articles-of-interest.html
Tuesday, May 19, 2015. Scott Fearon offers a skeptical opinion. Warren Buffett was in the news recently saying that "If I had an easy way, and a non-risk way, of shorting a whole lot of 20- or 30-year bonds, I’d do it." Stagflationary Mark. That Buffett has a poor record. Of predicting interest-rate moves. A doctoral candidate at NYU provides an overview of the 2002 merchant energy crisis. Christie's and Sotheby's, despite having an effective duopoly, are unable to earn oligopolistic profits. Oligopolies...
y0ungmoney.blogspot.com
Young Money: August 2014
http://y0ungmoney.blogspot.com/2014_08_01_archive.html
Sunday, August 31, 2014. More on Peter Lynch. My previous post was a critical review of two of Peter Lynch's books. I was critical because the books promote the idea that stocks, particularly "wonderful companies," are always great investments. (At one point he deems Micron Technology "a wonderful company from Idaho."). Despite that, Lynch makes a lot of good points, and it was unfair of me not to mention them. His first book, One Up on Wall Street. Companies tend to diworsify when their growth slows:.
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Young Money: October 2014
http://y0ungmoney.blogspot.com/2014_10_01_archive.html
Sunday, October 26, 2014. Book review: "Merchants of Debt" by George Anders. Is a history of Kohlberg, Kravis and Roberts, the leveraged-buyout firm. KKR was founded in 1976 and Merchants. Was was published in 1992, so it covers the first fifteen years of KKR's existence. Apart from good timing, KKR was successful because it pioneered a new way of financing LBOs. Traditionally, the sponsor of an LBO financed the transaction by investing a small amount of its own money in the LBO and borrowing the res...
y0ungmoney.blogspot.com
Young Money: July 2015
http://y0ungmoney.blogspot.com/2015_07_01_archive.html
Sunday, July 26, 2015. A major Burger King franchisee thinks that 3G overpaid for the company. They received an offer for Burger King that was much more than our group [of buyers] thought the brand was worth. 3G bought it for basically $4.5 billion. The investment groups that originally bought Burger King – Texas Pacific and Goldman Sachs – had only paid like $1.4B. 3G came in and was willing to pay a big premium, $25 a share for Burger King. We were shocked at that. According to The Globe and Mail.
y0ungmoney.blogspot.com
Young Money: September 2014
http://y0ungmoney.blogspot.com/2014_09_01_archive.html
Sunday, September 28, 2014. Value investing in tech and retail. By contrast, new technology standards and products replace old ones all the time. Instead of reverting to the mean, struggling tech companies usually revert to non-existence. The same is true for retail: what people like to buy and where they like to buy it change constantly. Some people who invest in declining retailers think that the retailers' real estate value provides a margin of safety. In an interview with The Manual of Ideas. 8226; R...
