The Abominable No-Man and Bad Management

Some investors think a business is good, but know that management is bad.  These investors justify the investment based on the idea that the great price of the business is worth the bad management. This is akin to marrying a supermodel who is going to yell at you all day.  Whatever pleasure your eyes may derive from the marriage, your ears will endure a greater amount of pain in the long run. The pocketbooks of those partnering with bad management are likely to see a similar 50%+ decline in their net worth.

Why Write?

Bird by Bird is, in my opinion, a poor book with an excellent chapter on First Drafts, namely “Terrible First Drafts.”* I quote below: Now, practically even better news than that of short assignments is […]

A Clean Room and 8 Year Projections

There is a huge element of “unknowns” in investing.  A business is a highly complex organism that is evolving and changing each day, not to mention that the environment and its competitors are doing the […]

The Golden Goose Squared

Last week, there were two great posts on the world wide web.  Legacy Moats vs. Reinvestment Moats by Connor Leonard as a guest post at Base Hit Investing and Young Money’s post about the Difficulty […]

Is There a Worm in Apple?

“I’m not entitled to have an opinion unless I can state the arguments against my position better than the people who are in opposition. I think that I am qualified to speak only when I’ve […]

Buffett and Market Forecasting

I enjoy the Reese’s Peanut Butter Eggs.  They are on sale during Easter as are other shapes on different holidays (christmas trees, etc).  Fortunately, I don’t care if I eat them before or after Easter, […]

2015 Annual Letter

A good marketing pitch book for an investment fund will have a clearly defined investment strategy.  Some sort of track record illustrating how this specific strategy has performed well in the past will also be […]