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!
i am the "other" guy so i vote for 6)
1) Making the Most of Your Meeting with Management
4) Idea generation
Thanks, BH. Looking forward to reading the posts.
5.
And walk through your back of the envelope math to show how simple it can be.
1 or 4
1 or 4
4 or 5
...or could you just get drunk and write all of them?
1 or 4 please!
sb this guy
@blackhat can you pm me when you post so I can frontpage it? thanks man
4
4 / 5
4
4
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.
1
3 please :)
4) Idea generation. Pass on that wisdom good sir.
I vote for 4!
4 - idea generation would be extremely interesting
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
4 or 5
The Many Faces of Activist Shareholders
Activism (Icahn) vs Contructivism (Trian)
How did #2 get no votes? Luckily, as someone said above, they all look interesting so, looking forward to reading about #4.
Would just be a screenshot of Google Maps directions to Mexico
No EPA fake CIA agent reference? A little dissapointed...
4 & 5
4 Please. I feel idea generation is my weakest point
4) The Art of Idea Generation, and Why Wall Street Sucks At It
Miss your posts, looking forward to it.
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?!
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.
4, 5
5
Going to be contrarian and go with 2. Under-discussed topic
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 vote #4.
4 or 5 Please
4
i'll be the one the that votes for #2 - its a topic that's almost never brought up, and the votes on here are further proof of that. definitely save it for a later post, i'd be interested in reading about it whenever you have the time to get to that topic in the future.
I was going to vote 4. Can't wait to read it
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?
1 and 4.
Thanks BH!
All of them.
2) Corporate Governance and Why It's More Important To Investing Than You May Think
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.
Also, #6 - how and when to use expert networks to build the mosaic, and how your competitors are using them.
4 please
Uno
No need to vote anymore guys, #4 it is. Possibly followed up at some point by #2 or #1.
The crowd is going wild. Can't control it.
might wanna give it more than 2 hours next time, bh...
3) The Many Faces of Activist Shareholders plase.
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