LC

They're not, in fact they help regulate proper androgen levels. I'd suggest examine.com for supplement/diet information: https://examine.com/faq/is-saturated-fat-bad-for-me/

I have to agree with others who responded to you. Why would they add now, especially vs. a few weeks ago when the stock was also extremely cheap relative to their cost basis, without the news of defaulting on the coupon? If you're Mohnish/Guy, and you're staring at huge losses, you must know this is on it's way to bankruptcy. So if you want to stay in this story, I think your best move is to position yourself for the fight in bankruptcy. In that care you'd be buying the debt, not the equity.

Not me. I sold my RACE, and had sold 2/5ths of my FCAU position in the 16.00s (pre-Ferrari spin). So I probably still own only 25% of my original investment in Fiat, and I'm going to hold that until around 2017/2018 and let Marchionne play out his hand. The reason I'm not adding more is that the auto industry generally sucks, seems both bloated and competitive, and players do not appear to be rational (see GM's response to Sergio's approach). I won't add more but I want to keep my remaining share to let Sergio play his hand.

if i win i'm buying all the growth stocks!

I learned this lesson the hard way. Luckily wasn't too hard in absolute terms but I've never had a 100% loss. I've come to the conclusion that coat-tailing, cloning, whatever u want to call it...is useless. Do your own homework.

http://www.streetinsider.com/Corporate+News/Horsehead+Holding+(ZINC)+Said+in+Grace+Period+After+Coupon+Miss+-+Bloomberg,+Citing+Debtwire/11216870.html

pricing power.

My vibe these days is to buy large-cap, mostly household name companies without huge valuations (30+ P/E), without massive, regular capital needs (think auto manufacturers, railroads, etc.) and without obsolete business models (think Pitney-Bowes). Set it and forget it. Not a lot of people are going to compound at 26%/year. Not born into the right decade, or have the single-mindedness, or connections, or plain luck. Buy Berkshire, the S&P, or maybe a basket of some quality S&P companies. Sit back, spend your time and effort on family, friends, career, hobbies, etc., and live a balanced and generally happy life.

LOL. Of course oil has intrinsic value: without oil nobody goes anywhere. If you believe that businesses have intrinsic value - and I guess you do because you mention "cash flows" - then you should realize that without oil pretty much all your businesses have no intrinsic value either (there are few exceptions perhaps). It's amazing how for people with a single hammer ("cash flows") everything looks like a nail... ::) I agree with Jurgis. Intrinsic value is not a PV calculation. Nike sells sneakers. Do the sneakers themselves have no value the same way oil has no value? Of course not, they make millions (billions?) of people's lives easier by protecting their feet.

Same for me, bought one for my sister-in-law as well because it's proved such a good value.

jeeze, great remarks from Sergio.

I find that the subject matter determines the comfort of the chair.

So I'll just give my thinking, I graduated ~6 months ago from a grad school with about 40K of "student debt". Now, I have cash in the bank to pay this off today if I wanted, I had the cash before I applied to school from saving for years. I said, screw paying for grad school in cash: I'm taking out loans, and sticking that money in the stock market. Turned out to be a good decision (probably 80% luck, 19% copying this board, 1% me being functional enough to navigate an online brokerage account). But now having graduated, it's apparently time to pay it back, and I'm in the same boat as your friends from the poker table. Heck I'm not even sure if I should pay it back. What are "they" going to do, come after me with a bat? Or maybe I just pay the minimum and kick the can down the road as long as possible. Maybe the gov't will eat the bill in 15 years. Why pay it back in that case? Maybe lock the interest rate, and sit on it. And you know, the only reason I'd consider this is because what you mentioned is so prevalent. NOBODY is paying these things, so the ones that do are the suckers at the table.

Are you talking about silicon valley bank? IIRC when they made loans to these tech co's they received warrants, which gave them exposure to tech equity valuations. Those valuations shot up in the 90s.

I'm not sure if they will, but they should. Government policy allowed banks to lend absurd amounts to anyone, because borrowers can't default on it. So the banks lent. And schools raised their prices in turn. Allowing more of a free market would have created a totally different landscape than what we have now. Everyone wanting to study 19th century poetry could still do it, just without 150K of debt. The government failed.

JBSS

What makes you think NYC RE prices need to correct, rather than wages? There is "tinder" on that side as well: record corporate profit margins (or so I hear), low tax rates paid by corporations/wealthy individuals, record high income-inequality, etc.

-8% I'm grateful it's not worse due to big losses on zinc, aiq, lukoy, fhco. I think I just suck at doing cursory valuation on small(er) caps. Didn't fully know the risks I was taking, pretty much, and how fragile the businesses of most small-caps are. Fiat carried the portfolio. well, prevented something like 40% losses haha. Thx again Sergio.

Hello, nice to have you here and thanks for introducing yourself. Happy new years!

not really sure but maybe they issued the securities below par with the promise to make whole upon redemption? so there was a 600M non-cash discount sitting on the books that is being reversed?

Take a look at Charlie Munger's list of cognitive biases.

and thus ends the age of the odd lot tender...

Andrew Schaffer, tesuji partners

look at the people in that photo: young, white, female. notoriously a customer demographic with rapidly changing tastes. very difficult to sell to on a consistent basis. david's tea might be able to do just that given the reasons mentioned already in this thread, but i'm not sure it's a 1-ft hurdle.

Damn you post good stuff, SD. Thx for your thoughts as always.