"Invert, Always Invert"
Warren Buffett and Charlie Munger have been advocates of inverting situations in order to obtain a more comprehensive degree of understanding. Sometimes, the insight obtained is of little importance and sometimes this insight is actionable. Typically in the stock market, this type of situational inversion can benefit those attempting to choose between two individual companies or securities. A popular example of this inversion method is Buffett holding shares of Rockwood Chocolate after the expiration of the company's unique warehouse receipt tender offer, foregoing a risk free return through arbitrage in favor of an enormous return via appreciation of the company's shares.
In a previous article, I discussed the potential for the shares of a small regional Class...
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