Archive for July 2008
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Time Warner: Worth Keeping an Eye On
By the end of the year, Time Warner Cable (TWC), will be a stand alone entity after being spun off from Time Warner Inc. (TWX). TWC is a publicly traded company as it currently stands, 84% owned by its parent, Time Warner Inc. The carve-out occured early in 2007, trading between $36-43, but has plummeted [...]
A Flurry of Appearances for Bruce Berkowitz
Here are the numbers:
Since the inception of the Fairholme Fund (FAIRX), right at the end of 1999, the fund has returned a cumulative 240%, through June 30, 2008. On an annualized basis, those are returns of 15.5% per year. That would turn a $10,000 investment into $34,000 in the span of 7 and a half [...]
The Failure (and Success) of Heuristics
We use heuristics in our everyday lives. “It’s about an hour away.” “That beer is $30/case so I’m guessing it’s better than the Busch Light for $13/case.” A heuristic is a shortcut, basically. Heuristics give us some easy measurements to quickly size up a situation. Guesses, estimates, guesstimates, approximations, whatever you’d like to call them, [...]
Do your Brain a Favor
Readers. Please, if you not already a subscriber or regular visitor, go over to noisefreeinvesting.com/blog and read Shane’s presentation on mental models and avoiding the “Man with a Hammer” Syndrome that Charlie Munger so passionately rallies against.
Shane has graciously put together a 50+ slide presentation on various mental models and examples of psychological follies that [...]
