Recent Posts

Catholic High School Girls in Trouble

By Derek On February 29, 2012

From: Derek Hillen
Sent: Wednesday, February 29, 2012 11:32 AM

“If there’s not drama and negativity in my life, all my songs will be really wack and boring or something.   - Eminem 

I don’t always focus on the negative but Catholic high school girls staying out after curfew can often get into all kinds of trouble, as seen in the classic intellectual film, “Kentucky Fried Movie.” The school girl skit within the movie featured acting luminaries as Lenka Novak (whose other screen success includes “Vampire Hookers“). With the Dow closing above the lucky 13,000 level for the first time in four years yesterday could markets be facing a similar scenario of staying “up” too late? I shouldn’t ruin a good party but the last time we saw this level the Dow proceeded to plunge 42% over the next six months (spurious, I know

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Buffet’s Seven Quotes

By Derek On February 27, 2012

From: Derek Hillen
Sent: Monday, February 27, 2012 11:18 AM

“Sing a country song in reverse and you will quickly recover your car, house and wife.”               Warren Buffet

Over the weekend Warren Buffet released his much anticipated “Letter to Shareholders,” which I have read. This is an annual event for the millions of Buffet watchers. Comfortably written from the “the cradle of capitalism,” as he calls Omaha, Nebraska, I gleaned the following seven takeaways and interesting quotes from the Oracle, including how sex will solve the housing crisis…

1) His successor has been revealed to the board – but not to shareholders. Probably no company other than Apple is so closely identified with one man than Berkshire Hathaway is with 81 year old Buffet. All he says on the subject of succession is that it will be

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10 Questions to Ask Listed Companies

By Derek On February 15, 2012

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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