CAPITAL ALLOCATION
Thoughts

CAPITAL ALLOCATION

“If you buy something with a 10% free cash flow yield and hold it for 3 years, management is going to be responsible for allocating a third of the value of the company over that time. You have to really care about that” Adam Weiss In his 1987 letter to investors, Warren Buffet made the following […]

Mergers & Acquisitions
General Information

A Guide To Mergers & Acquisitions

Putting together two businesses that are profitable, well managed, and even related in every way is not enough to create synergy….The overwhelming evidence is that mergers do not improve profitability… market share [or] growth Mark Sirower, The Synergy Trap: How Companies Lose the Acquisition Game “People live for purpose. You must not impose a new […]

investment
Thoughts

Benjamin Graham and David Dodd, 1934

The “new-era” doctrine—that “good” stocks (or “blue chips”) were sound investments regardless of how high the price paid for them—was at the bottom only a means of rationalizing under the title of “investment” the well-nigh universal capitulation to the gambling fever. Please follow and like us:0

Cyclical stocks
Blog

Cyclical stocks

Companies whose earnings tend to fluctuate sharply with their business cycles are issuers of cyclical stocks. When business conditions are good, a cyclical company’s profitability tends to be high and the price of its common stock tends to rise. When conditions deteriorate, the company’s sales and profits often fall sharply and/or rapidly. The timing of an […]

Financial Crisis
Guest Posts

Jeremy Siegel: The Crisis and the Markets

Wharton Professor Jeremy Siegel places the current economic recession in a broader historical context in this segment of his first lecture for Wharton’s new course, “The Economic & Financial Crisis: Causes, Consequences, and Policy Options.” Jeremy Siegel: The Crisis and the Markets Please follow and like us:0

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