POLL: BH's Next Investing Topic?

I've got a lot of free time this week, am feeling charitable/guilty, and have a few ideas in mind for what I'd like to share with you guys... but would like to hear what the monkeys would be most interested in reading about. So here's some suggestions, and feel free to comment with any others you think would be worth going into detail about.

1) Making the Most of Your Meeting with Management

2) Corporate Governance and Why It's More Important To Investing Than You May Think

3) The Many Faces of Activist Shareholders

4) The Art of Idea Generation, and Why Wall Street Sucks At It [UPDATE: Winner! Look for post this weekend.]

5) GARPing - What's Wrong with Paying 20x Earnings?

6) Other

Comment below on what sounds the most interesting to you, or if Other, suggest something you'd like to hear about. I'm not the world's best resource for recruiting or admissions or anything lifestyle-related, but I can do my best on something like that if everyone's interested. But I've always felt there's been a gaping hole in the actual "how-to" aspect of public equity investing on WSO. Though to be fair, it's not an easy task putting into words your investing process, or even the process in generic terms.

Anyway, let's hear what you guys got!

71 Comments
 

My company is currently in the throes of #3, and I would love to get your perspective on it. We've had three different activist funds (two working together jointly) engage us with various activist activity. They're primarily seeking board seats and additional influence, but also trying to shut down any plans for growth we're currently attempting. In your experience and professional opinion, what's the best way to deal with these types of activists? Frankly, I see them trying to capitalize on a minor but immediate stock pop if they are successful in their efforts. However, the value of the growth story, while longer term in duration, shows a significantly higher return to investors.

"Once bread becomes toast, it can never go back."
 

Current tallies (with people suggesting more than one splitting their vote)

1) 6.5 votes 2) Zero fucking votes 3) 2 votes 4) 7.5 votes 5) 3.5 votes 6) Nobody suggested anything so... Zero

So we have a winner in a nail-biter, idea generation it is. This should be tough... but fun.

4) The Art of Idea Generation, and Why Wall Street Sucks At It

 

4 - Idea generation is the beginning of everything guys! Let's start here and expect that our dear BH feels charitable/guilty a few more times in order to cover the other topics haha

 
tiger2012

6. How to keep your PM off your back and your significant other as well

Would just be a screenshot of Google Maps directions to Mexico

 

4) The Art of Idea Generation, and Why Wall Street Sucks At It

Miss your posts, looking forward to it.

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."
 

bh, I would like to know your thoughts on 2)

First thing I check when looking at penny stocks, small caps, and even mid caps is management bios, and see what other companies some of the chair people are involved in. Knowing what their incentives are in terms of compensation and any possible voting power is probably pretty important. I was looking at this small-cap - all of the shares outstanding only controlled 10% of the voting power, but the stock has skyrocketed.

Just a thought.

 

Just saw this- would have voted for two (people discount this/do not apply this at all).

Nonetheless, you're the man. Perhaps you would like bananas delivered to your door step instead of SB's?!

I'm on the pursuit of happiness and I know everything that shine ain't always gonna be gold. I'll be fine once I get it
 

Would love to hear your thoughts about the tech sector now. Is this a bubble / how big is the bubble? What do you think of Facebook, Twitter, etc. long term.

 

Going to be contrarian and go with 2. Under-discussed topic

"My dear, descended from the apes! Let us hope it is not true, but if it is, let us pray that it will not become generally known."
 
Best Response

It's decided then, I suppose - I will shoot for #4 sometime this week, end of the weekend at the latest if I can make it happen.

On the comments re: #2 (Corporate Governance)... in my original post I was going to note that this was by far the most valuable of the topics I mentioned to learn about, glad to hear a few people would be interested. I will make it a point to get something about that topic in another post sometime soon.

 

Since #5 was outvoted, I was just curious... In regards to your title 'what's wrong with paying for 20x earnings,' is this due to the fact that growth implied by this high of a multiple isn't sustainable in the long run, and you need to watch out for a multiple contraction if/when growth slows/the company's customer market reaches saturation point? (i'm sure i'm oversimplifying, but is my thought process anywhere close?)

 

@blackhat thanks. SB to you

I'm on the pursuit of happiness and I know everything that shine ain't always gonna be gold. I'll be fine once I get it
 
  1. Extra questions/ threads? a) What are some nuanced errors top (professional) people make in the investing space from idea generation, valuation to monitoring and closing out positions?

b) What do you think of the WB quote "I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that." If so what is the inflection point where alpha starts dropping? Corollary to that do you think there is significant alpha in the small- mid cap space or is this a red herring?

 

2) Corporate Governance and Why It's More Important To Investing Than You May Think

‘The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price." W.B." we venture the motto, Margin of Safety.” Ben Graham
 

Im surprised so many said no 4 but not number 2 but thats typical wall street cares more about volume of trading rather than value investing and Corporate Governance.

‘The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price." W.B." we venture the motto, Margin of Safety.” Ben Graham
 

Uno

Disclaimer for the Kids: Any forward-looking statements are solely for informational purposes and cannot be taken as investment advice. Consult your moms before deciding where to invest.
 

No need to vote anymore guys, #4 it is. Possibly followed up at some point by #2 or #1.

 

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[quote=patternfinder]Of course, I would just buy in scales. [/quote] See my WSO Blog | my AMA

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