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  • Some Caveats On Berkshire Hathaway  [View article]
    I agree with respect to your comments re: the relative insignificance of the public portfolio.

    Re: the author's concerns over the loss of the Buffet premium...it's actually the Buffet/Munger premium but at their ages, their unfortunate demise should surprise exactly no one. And given the under performance of the stock, a case can be made that the Street has already discounted the inevitable change in management.

    Oct 7, 2015. 04:34 PM | Likes Like |Link to Comment
  • What Is J.C. Penney's Real Estate Worth - And Does It Even Matter To Shareholders?  [View article]
    Excellent artice but as for large retailers never filing bankruptcy, I guess Kmart would be an exception.

    In addition, I think that there is vastly too much discussion about "liquidation" of J.C. Penny. It is a company that was badly damaged by ONE executive who had never had CEO experience in any retailer. Johnson was a merchandising executive at Target but that is a far cry from being a CEO.

    But one thing he did right was to facelift a lot of JCP stores. So, it probably has just about the most "spiffy" space of any of the major Mall anchors...certainly VASTLY more up-to-date that Sears.

    So all the talk about realizing value from real estate very badly misses the point. There is utterly no reason to believe that under competent management, JCP can't return to reasonable profitability and that is especially true given that Sears has been and continues to be one of the most poorly managed major department stores of all time.
    Sep 26, 2013. 05:20 PM | 1 Like Like |Link to Comment
  • Julian Robertson's Tiger Management unloaded the 42K Apple (AAPL) shares the firm still had going into Q1. Tiger, which has owned Apple for years, had pared its stake from 101K in Q4. On the other hand, Tiger initiated positions in Dunkin' Brands (DNKN - 546K shares), Monsanto (MON - 192K), McGraw Hill (MHP - 408K), and H&R Block (HRB - 849K). AAPL -1.1%. (13F) (Q4 hedge fund sales[View news story]
    His "financial engineering" skills are woefully inadequate. He allowed himself to be literally bullied into a divd. hike (which was too small) and a share buyback program.

    And as head of operations, HE is most responsible for the manufacturing structure which makes the company overwhelmingly dependant upon the Chinese. Maybe the company will get away with that....and maybe not. But those issues FOR SURE get crunched into investor's P/E criteria.

    May 15, 2013. 12:42 PM | Likes Like |Link to Comment
  • That was fast: Microsoft (MSFT) announces Office division CFO Amy Hood will be the company's new CFO, replacing Peter Klein immediately. Klein will leave Microsoft at the end of June (the end of Microsoft's FY13). Microsoft might have decided to speed up its announcement in response to today's Bloomberg report[View news story]
    Now if we could only get rid of Ballmer.


    May 9, 2013. 01:38 AM | Likes Like |Link to Comment
  • "Windows 8’s usability is proving an obstacle to adoption for consumers, with a learning curve that appears to be retarding growth across the industry," writes CLSA's Ed Maguire in his "downgrade" of Microsoft (MSFT) to Outperform. But he also notes 35%-40% of businesses are still on Windows XP, which Microsoft will stop supporting in a year, and that their upgrade activity could boost Windows sales (probably 7 more than 8). Meanwhile, Merrill (Neutral) estimates consumer PC weakness presents $5B in revenue risk and $0.30 in EPS risk for Mister Softee.  [View news story]
    The best thiings about Ballmer are A) he is wrecking MSFT much slower than Johnson wrecked JCP and B) there is an automatic 10% rally whenever he resigns or is fired.

    Apr 14, 2013. 09:05 PM | Likes Like |Link to Comment
  • Intel's Earnings Will Show The PC Slowdown Continues  [View article]
    INTC is an outstanding bond substitute. It's current yield is 33% greater than the 30 year Tsy bond.

    There is a 99.999% chance that INTC stock will be significantly higher in 30 years and 0% chance that the Tsy bond will pay off at more than par at that time....and a nearly zero percent chance that the bonds will rise much in price in the meantime.

    There is also a 75% chance that the INTC dividend will rise over time and a 0% chance that the Tsy bond coupon will do so.

    So, INTC is a "no-brainer" to put in a drawer and forget about everything but collecting the dividend for decades to come.

    Apr 12, 2013. 05:43 PM | 1 Like Like |Link to Comment