Category Archives: Uncategorized

Elliott Management on Ebay

https://enhancingebay.com/content/uploads/2019/01/Elliott-Management-Letter-to-eBay-1.pdf

Baupost purchases near $27 as well in late 2018

Dear Members of the Board:

I am writing to you on behalf of Elliott Associates, L.P. and Elliott International, L.P. (together, “Elliott” or “we”). Elliott beneficially owns over 4% of eBay Inc. (the “Company” or “eBay”), making us one of the Company’s largest investors. At approximately $1.4 billion in market value, this sizeable investment demonstrates our strong belief in the value opportunity at eBay.

The purpose of this letter is to share our perspectives as a large shareholder and provide our specific thoughts on how eBay can become a better and more valuable company. Elliott believes that by taking steps to unlock strategic value, refocus on the core Marketplace and improve execution – a plan we call “Enhancing eBay” – the Company will grow faster and deliver meaningful operational improvements. As a more focused and efficiently run business, we believe eBay can achieve a value of $55 to $63+ per share by the end of 2020, representing upside of more than 75% to 100% within the next two years.  (Prove to yourself via the 10-K)

Our letter today is organized around the following themes:

eBay as a Public Company: We review the Company’s remarkable history as well as its need for substantive change to remedy its prolonged underperformance. ‒ The Enhancing eBay Plan: We analyze the opportunities for the Company to create significant upside and detail an actionable set of initiatives to unlock trapped value, improve execution and enhance oversight. ‒ A Unique Value Opportunity: We quantify the significant value these steps will create.

Returns vs. Popularity

https://www.cfainstitute.org/-/media/documents/book/rf-publication/2018/popularity-bridge-between-classical-and-behavioral-finance.ashx

Investment Process

Tollymore Investment Process

https://www.tollymorepartners.com/letters

https://www.tollymorepartners.com/insights

Spotlights

Changes in the Finance Industry; A Hatchet Job on Buffett

Structural Changes in the Finance Industry for Junior Miners

https://www.youtube.com/channel/UCyjyUPbLw38tG9iAw0p7nxg

Hatchet Job on Buffett

Special Investigation: The Dirty Secret Behind Warren Buffett’s Billions
America’s favorite investor loves monopoly, not free markets.
By David Dayen

Surprise!  Buffett craves monopolies.  Who wouldn’t want to invest in them?   How about helping citizens by doing away with government controlled monopolies like the US Post Office or the Fed?

https://www.thenation.com/article/special-investigation-the-dirty-secret-behind-warren-buffetts-billions/

Buffett Interviewed on the Financial Crisis–a Good Review of Buffett’s Thoughts on Investing

BUFFETT INTERVIEW on FINANCIAL CRISIS and MOODY’s Moody Analysis and Transcript-of-Warren-Buffett-Interview-With-FCIC

The Above Book is a good primer on investing.   See course by the author.

http://www.advancedvalueinvestingworkshop.com/register.html

 

Understanding Interest Rates

https://monetary-metals.com/category/supply-demand-report-public/

What could help you with Mr. Market

The first line of Epictetus’ manual of ethical advice, the Enchiridion—“Some things are in our control and others not”—made me feel that a weight was being lifted off my chest. For Epictetus, the only thing we can totally control, and therefore the only thing we should ever worry about, is our own judgment about what is good. If we desire money, health, sex, or reputation, we will inevitably be unhappy. If we genuinely wish to avoid poverty, sickness, loneliness, and obscurity, we will live in constant anxiety and frustration. Of course, fear and desire are unavoidable. Everyone feels those flashes of dread or anticipation. Being a Stoic means interrogating those flashes: asking whether they apply to things outside your control and, if they do, being “ready with the reaction ‘Then it’s none of my concern.’ ”

https://www.newyorker.com/magazine/2016/12/19/how-to-be-a-stoic

Barrons-interview-Bruce-Greenwald-13052017 (1)

 

 

 

 

A WWII Soldier Writes Home 1944

Happy Veterans Day

Two letters from a WWII veteran who won the Silver Star (disturbing descriptions of war) Letter 5 Silver Star Letter Feb 24th 1944

February 1, 1944 Letter rpc to Dash and Mother Flame Thrower


Facing Death

When is a P/E not a PE: Case Study in Indexing

A tutorial on the dangers of Indexing investing. 

Know what you are doing IF you buy index funds!  You can learn a lot by studying Horizon Kinetics.  The video provides a valuation of the index and how to think about investing or not in indexes.

http://horizonkinetics.com/market-commentary/2nd-quarter-2017-commentary/

Also, more on indexing here:

Q2-2017-Commentary_APPROVED_FINAL

Q1-2017-Commentary_FINAL-1

Q4-2016-Commentary_Final

Q3-2016-KAM-Conference-Call

Do Stocks Outperform Treasury Bills?



The above seems to answer the question above.  But what if the returns are heavily skewed to only a few stocks?  Look deeper:  Bessembinder Do Stocks Outperform Treasury Bills


The chart above shows gold “outperforming” stocks, but note the time period. 1971 was when President Nixon unhinged the dollar from gold.  Be careful when assessing performance over a set time period.

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Search for value in high-priced stocks; Shorting; Gold Stocks; James Dimon Letter

Hunt for value in high priced stocks: http://otcadventures.com/?p=1912