Tag Archives: Investing War Story

Lecture 4: An Investor Discusses a Distressed Technology Company

The war stories continue.   In this lecture an experienced investor speaks about how he found, valued and managed his investment in a distressed technology company, MIPS Technologies, Inc.

go here:  http://www.scribd.com/doc/64833871/Class-Notes-4-Investor-Buying-Distressed-Tech-Company

You may wish to revist this depending upon your level of investing knowledge.  You should learn about one type of search strategy to find unreflective (uneconomic) forced selling.

Remember that reading a case study about investing is a bit like reading about sex or sky-diving.  Doing is different than observing.  Can you act calmly and rationally during a bear market to buy a company after a huge price decline assuming there is value above price?  A severe bear market (1929, 1974, 1987, 2008) feels like this (go to 1 minute 45 seconds of this video) http://www.youtube.com/watch?v=P6PhbLxLGno. Would you be able to act on an opportunity feeling such fear?

I would be interested in readers thoughts on what they learned or what they question.