Seeking Alpha

Chris DeMuth Jr.'s  Instablog

Chris DeMuth Jr.
Send Message
"It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a misplaced bet - that they can occasionally find one." - Charlie Munger I look... More
My blog:
Rangeley Capital on Harvest
My book:
Rangeley Capital Best Investment Ideas
View Chris DeMuth Jr.'s Instablogs on:
  • Superstition Arbitrage

    I am not superstitious. So, I have always been fascinated by real estate discounts due to deaths on a property. In many states, material facts must be disclosed and the standard is for any deaths on a property within the past three years count. I would happily pay a discount and hold it for long enough to season a property beyond the three year materiality standard. So, where can I find the world's biggest discount based on superstition?

    (click to enlarge)

    Poveglia Island

    This island is located right outside of Venice, is on the market, and the current high bidder is at 513,000 euros (around $700k). This is an amazing opportunity. It is a gorgeous island right outside of Venice and would make for a perfect little Mediterranean pit stop for sailors. The Italian government is strapped and they have to sell. I always love sellers in a crunch. A beautiful 17-acre island near Venice for under a buck? Yes please.

    Catch? It is the world's biggest price discount due to superstition. It was quarantined due to the plague and subsequently used as a mental asylum. Ghosts are reputed to haunt the island. However, I assign a 0% probability to the island actually being haunted, which leads to these attributes being over weighted in the market price. Yes it is a bit of a fixer upper, but it isn't haunted.

    The Italian government is selling another 148 properties and hopes to raise about half a billion Euros in the process; you might find some other bargains in the pile (but please don't bid on mine!).

    Jul 09 1:53 AM | Link | 5 Comments
  • Vitacost, Seeking Alpha Pro, And Mike Arnold

    Kroger and eCommerce Retailer Vitacost.com Announce Definitive Merger Agreement

    VITC shareholders receive $8 per share in cash. This is a good reason to subscribe to Seeking Alpha Pro and to follow the best ideas, such as the recent article by Mike Arnold on this idea. Here is how it has performed since publication:

    Onto the next one.

    Disclosure: The author is long VITC.

    Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.

    Jul 02 9:50 AM | Link | 1 Comment
  • WoodenBoat Show

    If you are interested in wooden boats, you might enjoy visiting the 23rd annual wooden boat show at Mystic Seaport in Mystic, Connecticut from June 27-29. It is a beautiful site and the weather should be nice.

    If any of my partners happen to be reading this and are concerned that I am playing hooky: we are up for the month and beating the market this year, our bids will be in for the Bitcoin auction, and new research projects are percolating along for success in the second half. I enjoy the capital markets enough that I tend to finish executing my good ideas and then start right in on my bad ideas. Instead, I should get out on the water before I get into any mischief.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.

    Jun 26 8:22 PM | Link | 2 Comments
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
  1. GCVRZ Forum Archive (1,000 Comments)
  2. Event Driven Q&A Forum (220 Comments)
  3. GPT Forum (125 Comments)
  4. Shorts Forum (120 Comments)
  5. Gold (112 Comments)
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.