Patsy in the Game

“As they say in poker, “If you've been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”” — Warren Buffett"Patsy” is defined as someone who is “easily taken advantage of, especially by being cheated or blamed for something.” Here’s a problem which helps spotting patsies: Assume that a… Continue reading Patsy in the Game

Leveraged Promoters, Haemorrhaged Stockholders

Thread... Let's say that a highly-profitable, listed business is un-leveraged but its promoters are highly leveraged in their personal balance sheets. Let's also say that loans taken by the promoters are secured by the collateral of the promoters' shares in the listed company. Let's further assume that the mistakes were made by the promoters with… Continue reading Leveraged Promoters, Haemorrhaged Stockholders

What can Long-term Value Investors Learn from Traders?

Thread..   A few years ago, I was invited to speak at a conference where both the organisers and the audience were hugely dominated by traders. And the topic that I chose for my talk revolved around one question: What can long-term value investors learn from Traders? The talk was a long one and it… Continue reading What can Long-term Value Investors Learn from Traders?