compoundvalue

~ -5% (a bit hard to track as across a few accounts with inflows and outflows). Sold a few risky things in March and April that have tripled or quadrupled since and concentrated around 5-6 names that did well since but not as well (most significantly WFC). Should have probably sat on my hands in March and April

Take $32, which is a 3x gain on the stock. Warrant is $3 and at $32 stock, the warrant has a $10 value. Not much difference in gain. I know, that's the reason I used it as break even point as mentioned before by aryadhana

On warrant pricing I think people (myself included) tend to underestimate value of long dated options. A lot of things can happen in almost 7 years. Some potential scenarios may entail a share price that would be much higher than $32 (again 7 years time horizon). As for all the warrant unfriendly and outright dumb things mgmt. and board can do in the interim, Icahn with significant skin in the game (including the warrant) and 3 board members isn't the worst partner one can have for this kind of journey, nevertheless it's definitely a risk that has to be taken into account

Issued on July 2020, exercisable through Aug 2027, exercise price $22.00. Most important factor in determining how this one turns out is obviously the price of oil but is it that unimaginable that sometime over the next 7 years oil trades at $60, $70 or $80? If oxy just keeps chugging along at current WTI prices and uses free cash flow to pay down debt this should work out just fine, if at some point oil price does go above that level it could end up very well. Downside scenario is OXY can't pay its debt or oil prices remain low for longer. Icahn has ~11% stake (including warrants) and 3 board members and has been buying the warrants on a daily basis lately. Exercise price on the Berkshire preferred is $62.50, yes it was made in a different WTI price environment and pre-COVID but gives you a sense of what Buffett thought the upside might look like here back then

Bumping this up. I wonder at what point it becomes attractive. I mean even if the Client Computing Group is a melting ice cube, the remainder is a fast growing data driven $35-40bn business. If you look at peer group valuations, there seems to be a disconnect

“I would never buy [ Tesla], and I would never sell it short” Munger February 12 2020

Curious as to what people think re the potential effect of a dividend cut on pricing of LEAPS? On the one hand the stock price might get a hit from the cut, on the other hand cost of LEAPS goes down

The Feb8 2021 floating rate were trading around 65 up until a week ago. Now at ~79. Tried to buy some but my broker failed to execute the trade

Started looking at Hanesbrands today. The~5.0X EV/LTM EBITDA caught my attention. Will probably dig deeper but seems like if it survives it has multibagger potential

+1

Anyone looking at the debt here? Some of these things seem quite attractive given (among other things) that you're above Berkshire in the capital structure

Interesting indeed

That’s the prudent thing to do at this point, on a timely manner too

Interesting

WFC