AMR bankrupt this week. Not thinking about it. Looking forward. Probably have to go back to some programming job after baby.
Seth Klarman with Charlie Rose on http://myinvestingnotebook.blogspot.com/2011/11/charlie-rose-interviews-seth-klarman.html
highlights:
*3-5 years investment horizon
*selling's harder than buying - hard to know when to get out
* You never know how big a bargain you will get offered tomorrow. Maybe someone comes and sells you a dollar for 50 cents, you never know if they will sell you the dollar for 40 cents a day later, so you need to buy it and maybe leave room to buy more more later. and maybe you spend the last dollar on buying it later and it goes down further after you buy it. So you always are checking and rechecking your work. The thing that would make you lose your confidence when you;'re doing that, is if you realize the dollar isnt actually worth a dollar, maybe it was a dollar but Greece failed or the Euro fell or collapsed and all of a suden, your dollar is worth only 30 cents.
* Its not so much figuring out what its worth today, its making sure it'll still be worth around the same tomorrow
* Stocks are cheap for a reason. good management is important.
Mine:
Debt/Capital is the main thing to check first for any company. Debt should include all LT and ST debt.
A measurement of a company's financial leverage, calculated as the company's debt divided by its total capital. Debt includes all short-term and long-term obligations. Total capital includes the company's debt and shareholders' equity, which includes common stock, preferred stock, minority interest and net debt.
Read more: http://www.investopedia.com/terms/d/debt-to-capitalratio.asp#ixzz1fcmioMiF
A company should own twice as much as it owes.. Rule of thumb from "Little Book of Value investing : Browne, pg 79"
x/x+2x = 1/3 = 33% (max debt to capital ratio)
Seth Klarman with Charlie Rose on http://myinvestingnotebook.blogspot.com/2011/11/charlie-rose-interviews-seth-klarman.html
highlights:
*3-5 years investment horizon
*selling's harder than buying - hard to know when to get out
* You never know how big a bargain you will get offered tomorrow. Maybe someone comes and sells you a dollar for 50 cents, you never know if they will sell you the dollar for 40 cents a day later, so you need to buy it and maybe leave room to buy more more later. and maybe you spend the last dollar on buying it later and it goes down further after you buy it. So you always are checking and rechecking your work. The thing that would make you lose your confidence when you;'re doing that, is if you realize the dollar isnt actually worth a dollar, maybe it was a dollar but Greece failed or the Euro fell or collapsed and all of a suden, your dollar is worth only 30 cents.
* Its not so much figuring out what its worth today, its making sure it'll still be worth around the same tomorrow
* Stocks are cheap for a reason. good management is important.
Mine:
Debt/Capital is the main thing to check first for any company. Debt should include all LT and ST debt.
A measurement of a company's financial leverage, calculated as the company's debt divided by its total capital. Debt includes all short-term and long-term obligations. Total capital includes the company's debt and shareholders' equity, which includes common stock, preferred stock, minority interest and net debt.
Read more: http://www.investopedia.com/terms/d/debt-to-capitalratio.asp#ixzz1fcmioMiF
A company should own twice as much as it owes.. Rule of thumb from "Little Book of Value investing : Browne, pg 79"
x/x+2x = 1/3 = 33% (max debt to capital ratio)
