Author Archive | David Merkel

Call Me When You Have A Real Insurance Company!

Photo Credit: eflon || The title of the article comes from a comment Greenberg supposedly made to Buffett when AIG was much bigger than Berkshire Hathaway — times change… ============================ The title of the article comes from a comment Greenberg supposedly made to Buffett when AIG was much bigger than Berkshire Hathaway [BRK] — times change… It’s come […]

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Trump and Conflicts of Interest

Photo Credit: www.GlynLowe.com ====================== I was driving to a meeting of the Baltimore CFA Society, and listening to Bloomberg Radio, which was carrying President-Elect Trump’s Press Conference. I didn’t think too much about what I heard until Sheri Dillon talk about what was being done to eliminate conflicts of interest. Here is an excerpt: Some […]

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Distrust Forecasts, Part 2

Photo Credit: D.C.Atty || Scrawled in 2008, AFTER the crash started ============================= Comments are always appreciated from readers, if they are polite.  Here’s a recent one from the piece Distrust Forecasts. You made one statement that I don’t really understand. “Most forecasters only think about income statements. Most of the limits stem from balance sheets proving […]

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Distrust Forecasts

Photo Credit: New America || Could only drive through the rear-view mirror ======================================================= This is the time of year where lots of stray forecasts get given.  I got tired enough of it, that I had to turn off my favorite radio station, Bloomberg Radio, after hearing too many of them.  I recommend that you ignore […]

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Who Needs Liquidity Most?

Photo Credit: Timothy Appnel -==-=-=- Here’s the quick summary of what I will say: People and companies need liquidity.  Anything where payments need to be made needs liquidity.  Secondary markets will develop their own liquidity if it is needed. Recently, I was at an annual meeting of a private company that I own shares in. […]

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Sorted Weekly Tweets

Facebook & WhatsApp   Rags-To-Riches Tale Of How Jan Koum Built WhatsApp Into Facebook’s New $19B Baby http://t.co/bJs6kQrlMx Background on WhatsApp founders $$ Feb 22, 2014 WhatsApp Shows How Phone Carriers Lost Out on $33B http://t.co/3gOutvRDzK Perhaps consortium of telephone companies should have bot them $$ Feb 22, 2014 Whatsapp and $19B http://t.co/TWI44XfTOC Explains why […]

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Industry Ranks February 2014

My main industry model is illustrated in the graphic. Green industries are cold. Red industries are hot. If you like to play momentum, look at the red zone, and ask the question, “Where are trends under-discounted?” Price momentum tends to persist, but look for areas where it might be even better in the near term. […]

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There are Limits to Valuations

Every now and then, some will argue that there are no limits on valuations.  This tends to happen in bull markets.  We are getting that now. This sentiment is sometimes due to ignorance, because bull markets encourage cheerleaders.  There are few who will oppose a bull market, though many who will talk about it after […]

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Where to Find Data

Here’s another letter from a reader: Hi David, I have been a long time reader of your blog but writing for the first time. To me a key part of the investment process for a generalist investor has to be a way to efficiently screen stocks to generate  investment ideas and also measure historical returns […]

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Why Buy Convertible Bonds?

I sometimes answer questions for those at Klout.com that ask basic investing questions.  Usually I point to old articles of mine, but this time someone asked a question that I have not answered before, and here it is: What’s a convertible note? I’ve Googled for the answer but can’t find a simple answer. Why would […]

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