April 5th, 2011
Rakesh Jhunjhunwala is an Indian value investor who includes growth considerations into his analysis. In a recent interview, he discussed the importance of conviction, and focusing on a company’s long-term source of profits rather than fixating on individual quarterly metrics.
The biggest challenge that faces value investors is that things always look bloody terrible at the bottom. Therefore, people’s hands usually shake uncontrollably when the prices are hitting new lows every day. Traders would ride the downward wave, and investors . . .
→ Read More: Useful insight from an Indian value investor
April 4th, 2011
Tags: DELL. Earlier today I wrote about Dell Inc. (DELL). A reader emailed me this story from Bloomberg noting last month that Mason Hawkins, of Longleaf Partners Fund, had made a bullish bet on Dell:
The $8.75 billion Longleaf Partners Fund, managed by Hawkins through his Southeastern Asset Management Inc., sold about 10.5 million Dell shares during the fourth quarter, according to a report filed Feb. 17 with the U.S. Securities and Exchange Commission. Longleaf bought call options that entitle the Memphis, . . .
→ Read More: This noted value investor is bullish on Dell (DELL)
April 4th, 2011
Tags: DELL, HPQ.  Why use your own money, when you can use someone else’s for free?
This is precisely what Dell Inc. (DELL) does as shown by its negative cash conversion cycle.
The cash conversion cycle measures the time it takes a company to convert sales into cash. It is calculated as the Days of Sales Outstanding plus the Days of Inventory less the Days of Accounts Payable. To explain . . .
→ Read More: Dell’s Cash Conversion Cycle provides a competitive advantage (DELL, HPQ)
April 3rd, 2011
Tags: BRK.A, BRK.B. Ajit Jain is Buffett’s insurance guru. He was recently interviewed by The Times of India:
Most reinsurance companies have some presence here. Why has BH stayed away?
We do have one person on the ground, former GIC chairman D Sengupta. In reinsurance unlike Swiss Re and Munich Re, which have a decentralized model, we tend to be very centralized in our decision-making. This gives us the flexibility to take decisions on big risks. There was a time in 2001-03, . . .
→ Read More: The Times of India interviews Berkshire Hathaway’s Ajit Jain (BRK.A, BRK.B)
April 3rd, 2011
Mr. Market overreacts to news stories. We learned that here. The following graphic shows some of the news stories that have surfaced over the last decade, depicting the relative intensity of the news stories (Click for full size).
Talk to Frank about Mr. Market’s Overreactions
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