Month

February 2012
Assured Guaranty (AGO) came out with earnings after the close today that were phenomenal.  Please keep in mind that operating earnings are far more relevant than net income due to very obscure and illogical accounting rules for the financial guaranty industry.  For the year AGO posted operating earnings of $3.26, and less importantly net income...
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Here’s a link to an article regarding Berkshire Hathaway’s valuation.  Traditionally Berkshire has traded at between 1.3-1.8 times book value.  The reason for this is that the majority of the market capitalization was represented by Buffett’s investment portfolio which are marked to market, therefore any valuation in excess of book value represents what is known...
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Today SHLD reported disappointing earnings as was expected given their announcement right after Christmas, which caused the stock to drop substantially.    As you are aware we have never been advocates of Sears as a best in class retailer because it simply is not.  Our investment thesis has been that the value of the assets minus...
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Please enjoy this video of Dick Bove commenting on banks and their insanely low valuations.  Pay particular attention to his comments regarding them trading below their net cash levels, and also you should understand that all of the credit trends are showing improvement.  Earnings will pick up when the economy picks up some real steam...
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We have seen some very encouraging insider buying at AIG that I believe warrants attention.  AIG is one of the most misunderstood large cap companies that we see.  Most analysts and market participants are blinded by their recent history of liquidity failure, as opposed to the century long history of becoming one of the most...
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I thought you might enjoy this insight into the investment practices of Seth Klarman.  Klarman is a low key value investor with an amazing track record, and is one of three men that Warren Buffett mentioned he would recommend as a money manager to people.  His investments are unorthodox in many cases and his book...
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One of our favorite stocks (AGO) today announced the doubling of their quarterly dividend.  Their earnings come out on the 28th and I also expect them to have also bought back stock at attractive prices.  At the end of 2011 all we heard about in the news was that investors should buy high yield defensive...
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Today Larry Fink the CEO of Blackrock, recommended that most investors put 100% of their investments in stocks.  While the article mentions that this is against the advice of most money managers who recommend a 60/40 stock/bond allocation, I at least applaud that he isn’t afraid to show his conviction when the relative value of...
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