Wednesday, February 15, 2017

Healthy Sleep Habits, Happy Child

Babies need naps. Unfortunately, they don't always agree. So how the $*#)@# does a parent appropriately deal with such a situation? Healthy Sleep Habits, Happy Child is here to help.

Thursday, February 9, 2017

Alliance Aviation Services

I generally avoid cyclical companies: I don't think I can time when cycles turn, so I think there's always a big risk I'll become a bagholder. But there are exceptions. When negative sentiment is so pervasive that prices of even healthy companies fall to extreme levels, I think cyclicals can be great asymmetric opportunities.

Thursday, February 2, 2017

The Adventures of Tom Sawyer

Mark Twain was not a good investor. Though he made a ton of money, he managed to lose it on some terrible investments, and went bankrupt in the process. But that doesn't mean he doesn't have any redeeming qualities we can learn from. He eventually repaid his creditors in full, even though he had no legal obligation to do so. Oh yeah, he was also an author who has been called "the father of American literature".

Wednesday, January 25, 2017

IWG Technologies Goes Private

Two years ago I wrote about a tiny company called IWG Technologies (IWG) that makes water systems for aircraft. It had a net cash position, traded at a single-digit P/E for much of that year, and had decent growth prospects. The company was just taken private at a 75% premium to its price two years ago.

Thursday, January 19, 2017

Algorithms to Live By

You peer through the windshield as you approach your destination. It's not far now, maybe 1 more block? Now that you're so close, do you take the first parking spot you see, or do you take the chance that maybe there'll be an open one right in front of your favourite restaurant?

Tuesday, January 10, 2017

The House of Morgan

Picture yourself as the owner of a promising business in early 20th century America. How do you finance your expansion? There are no capital markets you can tap. Your business, like pretty much every business, is too small to develop its own financing capabilities. (The transportation and communication networks we take for granted today didn't exist, making businesses much more local in nature than they are today.) Most of the money available for this sort of thing comes from Europe anyway. Who is your master in such an environment? Your banker!

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