One area I like to “park cash” is in cash shells with significant insider ownership trading for less than the value of their net cash with minimal burn rates. I liken these to cash equivalents with some potential upside from a good deal. While there could, of course, be some downside if a deal never happens and the company burns away all its cash or if the deal is a poor one, the hope is that, by picking firms with significant insider ownership, management’s incentives discourage an unending cash burn and, as a basket, these outperform the market with substantially less risk. Continue reading
Someone on twitter asked if I still followed TSRI. I do, and I still own a small position. Rather than try to reply on twitter, I figured I’d do a quick breakdown on here, and to the extent anything changes in the future, I will post an update.
For those of you thinking about making a switch to investing full time, I really enjoyed these thoughts from someone who’s done it themselves. Enjoy.
I wanted to post this not because I get a referral fee or readers signing up for it impacts me in any way; instead, I post this because value investors love to read and love to save money. Anyway, I’ve recently been using the site bookbub quite a bit and I think most avid readers will enjoy it. The site basically tracks book deals and emails deeply discounted or free books to readers every day. Unfortunately, I don’t believe there are investing books on there, but I have downloaded and read five or six best sellers for free in the past month. Give it a try if you’re looking for something new to read.
For those of you who haven’t read it yet, here’s Howard Marks’ latest, Risk Revisited.
I’ve written about IDT a few times. They published an investor presentation to little fanfare yesterday. This may seem silly, but one of the tricks I’ve learned is to pay close attention to graphs in presentations. The reasoning is simple- people check words very closely in a presentation, but people often glance over graphs and sometimes information that a company may not have necessarily meant to show gets revealed. It’s normally not anything material, but often you can get a bit of incremental information from it. Continue reading