Archive for the ‘Post’ Category

My Buddy Russell Napier

By Derek On March 1, 2012 1 Comment

It is one of the blessings of old friends that you can afford to be stupid with them.”                    Ralph Waldo Emerson

I ran into an old friend today, Russell Napier, famed big picture macro strategist whose award winning book, “Anatomy of the Bear” makes him an expert at identifying market tops and bottoms. A financial historian at heart, Russell often looks for historical patterns to decipher the barrage of confusing and often conflicting data that assaults the senses today. After trading pleasantries and each of us lying about how good the other looked, I asked him, “Right. Russell, tell me. Are you bearish or bullish?” “Bearish,” came the immediate response. I too have been skeptical of the recent rally in equity markets and asked him for his reasons. Here is the conversation we had in front of the elevators this morning where he

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10 Questions to Ask Listed Companies

By Derek On February 15, 2012 No Comments

In a recent note we talked about why visiting listed companies is a good idea and how to do it. Let’s take the idea one step further and look at what questions to ask a company during the meeting. 

First, you call the company of your choice. It is best if the company is “investable,” meaning it trades enough a day to make this a commercial proposition for clients. There really is little point to visiting a small cap company with no liquidity and telling large institutions like Fidelity to buy it. They can’t. For larger clients the minimum amount of liquidity will be around $10 mn traded a day. Some may go as low as $5mn in daily turnover. Anything less is really more for smaller funds who are only interested in buying

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Visiting Listed Companies – Why and How

By Derek On February 8, 2012 No Comments

“Stand out. Make noise.”  – Jon Bon Jovi

Bill Gates: An Early Attempt to Stand Out

The financial industry is super competitive and if you want to thrive you first have to survive. A good way to do this is to stand out from the crowd and do something your competition isn’t.

A large part of the job, whether as an analyst, a salesperson or a fund manager, is visiting listed companies and learning as much as you can about them. We do this pretty much every day and it is the best way to get to know a company and stay on top of important developments and trends. Meeting senior management is also often useful for the intangible benefits of getting a feeling about how “real” or “sustainable” their story is. We all want to invest in undervalued gems that have a great story as

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