Select Quotes from Warren Buffett

The PowerTrend Profits investing newsletter identifies some favorite quotes by Warren Buffett:


"The stock market is a no-called-strike game. You don't have to swing at everything -- you can wait for your pitch."

"'Price is what you pay; value is what you get.' Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."

"The best thing that happens to us is when a great company gets into temporary trouble... We want to buy them when they're on the operating table."

"When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Bullish Billionaire David Tepper Dumps Stocks

As reported on his recently released 13F for Q4 2013, David Tepper liquidated the following stocks:

• US Airways ($178 million, 9.4MM shares)
• Dow Jones DIA ETF ($151 million, 1MM shares)
• Hertz ($33 million, 1.5MM shraes)
• Bank of America ($31 million, 2.2K shares)
• Sandisk ($25 million, 425K shares)

Chairman Eric Schmidt selling Google

Google Inc Chairman Eric Schmidt plans on selling roughly 42 percent of his stake in the company (NASDAQ: GOOG).

article

Peter Thiel cashes out of Facebook

Peter Thiel, an early-stage Facebook investor and co-founder of Paypal, was among the key insiders selling shares after a lockup expired last week.

A SEC regulatory filing shows that Thiel, sold about 20 million shares of Facebook through affiliates such as his Founders Fund and other entities. The shares were sold for between $19.27 and $20.69, for a total of about $396 million.

Billionaires continue to buy Netflix

Betting on a continued turnaround at Netflix (NASDAQ:NFLX), billionaire investors such as Julian Robertson and Steven Cohen continue to build positions in the stock according to SEC reported data.

7/24 update ---

Businessweek article-Netflix's 2Q numbers disappoints, stock tumbles

Has Mark Cuban Hedged His Facebook Position?

Has Mark Cuban Hedged His Facebook Position?


There are five (correct) answers to this question. They are (in no particular order):

a. who knows?
b. he'd be stupid if he wasn't
c. Broadcast.com
d. Yep, he's gotta to be
e. Yes, his silence (no posts or tweets) on this means only one thing

First, let's take a look at Mark Cuban's current (disclosed) Facebook position---

(Long) 150,000 shares; average cost per share $32.49; total cost $4,873,500

Based on a 6/1/12 FB close at $27.72, Cuban looks like he is sitting on a net (paper) loss of $715,500.

Do we begin to worry and feel sorry for Mark Cuban and his Facebook trade? No, because we only can see his paper loss. No, because he already told us this is a trade, not a long term investment. No, because with an original FB position of nearly $5 million, he has a vested interest in monitoring trade. No, because Mark Cuban doesn't like to lose money. No, because Mark Cuban isn't stupid.

Back in 1995 Mark Cuban and partner created Broadcast.com, a multimedia company. Years later they sold the company to Yahoo! for $5.7 billion in 1999. But, Cuban then owned restricted Yahoo! stock that was locked up. Cuban was at risk owning (temporarily) illiquid Yahoo stock. Cuban was at substantial risk. Cuban didn't want to accept that risk. Mark Cuban wanted to transfer that risk to the options market. So, Cuban says he "hedged my stock with synthetic indexes, in case the market cratered in the six months before I could hedge my actual Yahoo shares. It cost me $20 million, but I protected what I had." (Fast Company, September 30, 2002).

In January 2000, Cuban bought the Dallas Mavericks, NBA franchise.

In May 2012, Cuban bought a little under $5 million of Facebook stock.

Mark Cuban is hedged.

Mark Cuban, Facebook Speculator

Mark Cuban, last week, purchased nearly $5 million of Facebook stock as a short-term speculative trade.

Cuban sees it this way: “It’s a trade, not an investment. Kind of like buying a Mickey Mantle, a Hank Aaron and a Barry Bonds rookie card knowing there is a card show in town next week.”

Mrs. Facebook, a simple creature, a simple billionaire

Who is Priscilla Chan?


Well, according to Priscilla herself, she is but a "simple creature."

Now, that simple creature instantly has a most complex life ahead of her.

The newlyweds, Mr. and Dr. Chan-Zuckerberg, both went to college at Harvard and have been together for nine years.

And they tied the knot in a very private and modest event in California this month with fewer than 100 in attendance.  Green Day lead singer Billie Joe Armstrong entertained the guests.

Of course Mark announced this event on his Facebook page when he changed his relationship status to "married."

Congratulations to Mr. and Dr. Chan-Zuckerberg! Think Billions wishes you both well!

Eddie Lampert and Sears: Is This Move More Than a Dead Cat Bouncing?

Eddie Lampert, formerly known as The Next Warren Buffett, is Chairman of Sears Holding Corp.

Eddie, throughout 2012, has been desperately trying to prove to Wall Street that Sears is not a "dead cat bouncing." But, rather, a sustained growth move to the upside.

Amazingly, so far in 2012, Chairman Eddie is seeing some success contrary to critics (including Think Billions). Sears stock is up an amazing 60% YTD this year.

The Wall Street Journal, always up for jumping on a stock bandwagon, is sending Chairman Eddie and Sears much financial love these days.

In a recent 'Behind the Tape' article ("Lampert Skeptics Could Get Seared" May 16, 2012), the WSJ brazenly lays out the undervalued case for Sears that even a Motley Fool subscriber could read and understand.

Calling Chairman Lampert "a master of financial engineering" our WSJ reporter applies some quick-and-dirty advanced math and accounting skills he picked up somewhere to arrive at a $8 billion value for Sears. Undervalued and under-appreciated. Bank it.

Again, our brazen WSJ reporter: the "good news at Sears can be particularly potent. Look out above."

It is just The Wall Street Journal doing a public service to short-sellers of SHLD recommending they immediately close out positions.

Two Shareholders Sue J.P. Morgan Over Trading Losses

NEW YORK—Two shareholder lawsuits were filed late Tuesday against J.P. Morgan Chase JPM +1.74% & Co. and its top executives over the revelation last week that the bank had suffered more than $2 billion in trading losses. The lawsuits alleged that the bank's top executives, including Chief Executive Jamie Dimon, misled investors about the company's investment exposure and the potential risk of loss on those bets.

 "These derivative bets went horribly wrong, resulting in billions of dollars in lost capital for the company and billions more in lost market capitalization for J.P. Morgan shareholders," one of the lawsuits said.

- The Wall Street Journal

Jamie Dimon: Way too big to fail

Who is Jamie Dimon?

The answer is a simple one. Jamie Dimon is simply Way Too Big to Fail.

Jamie Dimon is currently chairman and CEO of JP Morgan.

Interestingly, Jamie is also on the board of the New York Federal Reserve Bank. A banking regulator and important part of U.S. monetary policy.

Jamie Dimon was a classmate of (now GE chairman and fellow crony capitalist) Jeffrey Immelt while studying for their MBA's at the Harvard Business School. Jeffrey Keith "Jeff" Skilling, former President of Enron and also a Harvard MBA, was not a classmate of Jamie Dimon while at Harvard. Jeff Skilling is currently serving a 24-year, four-month prison sentence at the Federal Correctional Institution in Englewood, CO.

This month, JP Morgan received worldwide global attention for its $2 billion financial market trading loss disclosure. If you have a problem with this trading loss as a shareholder, JP Morgan customer, or a U.S. taxpayer, please remember: Jamie Dimon is Way Too Big to Fail.

On December 31, 2005  Jamie Dimon was named CEO of JP Morgan Chase (NYSE: JPM). One year later, he was named chairman.

When Jamie Dimon began as CEO JP Morgan stock was selling for $39.69 per share. JPM closed trading on May 15, 2012 at $36.24. The 7-year total-Jamie-Dimon-JPM-return is down over $3 per share. When Jamie Dimon began as CEO, JP Morgan was providing shareholders with a 34 cent per share quarterly dividend. That dividend was cut to 5 cents per share in 2009 and is now up to 30 cents per share quarterly.

If you have a problem with this stock performance as a JPM shareholder, again, please do remember: Jamie Dimon is Way Too Big to Fail.

I told you homeboy ( can't touch this)
Yeah, that's how we living and you know (can't touch this)
Look at my eyes, man (You can't touch this)
Yo, let me bust the funky lyrics (can't touch this)

   MC Hammer - Can't Touch This

JPMorgan Chase: Billions in Trading Losses

JPMorgan Chase not hedging well at all

One of the world's largest banks, JP Morgan, has reported hedging strategy losses of well over $2 billion U.S.



JP Morgan CEO Jamie Dimon, and Obama Administration insider, said: "This puts egg on our face." 

How did this happen? Why did this happen? One analyst noted that JP Morgan tried to hedge its over-hedge positions. Leverage does as leverage does.

Dell continues to experience global market pressures

Dell Inc. (NYSE: DELL) opened gap down today in trading and stayed gap down in response to yesterday's global revenue forecast for the world's No. 3 personal computer maker as coming in well below market expectations.

Dell closed down $1.05 a share for the day to 17.15, a drop of nearly 6%.

Dell Inc. founder Michael Dell continued to smile his unblemished smile and explained how Dell is continuing to add value to customers on a world-wide basis.


Dell Inspiron i14RN-1227BK 14-Inch Laptop (Diamond Black)

Eddie Lampert of Sears is forced into his own share buy back program

Hey, stock investors! what happens to one of your positions when you fully realize that you are "long and wrong?" Well, there are multiple strategies, of course. Sell, admit a mistake, and exit your position. Hold and hope for price recovery. Enter into some sophisticated options positions.

Eddie Lampert, formerly known as The Next Warren Buffett, has experienced the "long and wrong" feeling with his beloved basket-case of a retail turnaround project better known as Sears (NASDAQ:SHLD). Currently selling for a cool $34 a share (52 week lo/hi 28.89 - 94.79) this dog of a stock has most certainly seen better days. Plus, from an operational standpoint, the news gets worse and worse month after month.

What is happening now to Eddie is that he is not just "long and wrong" with his personal holdings in Sears, but with his managed hedge fund as well. To placate his restless hedge fund investors, he has personally bought more Sears stock directly from the hedge fund to emphasize that he is "long and wrong" with conviction! Go, Eddie,go Eddie!

File this move under averaging down, doubling down or forced to eat his own shares under duress.

NY TIMES: Sears article


Eddie is receiving alot of quality strategic advice these days on this investment matter. Such as: dump Kmart, stop watching the movie Groundhog Day and take a part-time job at Walmart to learning retailing from the ground up. The Sears turnaround attempt will make for a great movie some day and/or a compelling Harvard Business School case study.

But, best of all, most think Eddie is still a high quality investor and that Sears is one of his few serious mistakes along the way.

So, we at Think Billions, wish Eddie Lampert well and hopes he enjoys a profitable 2012.

Polo Ralph Lauren Corp (NYSE: RL) downgraded

Polo Ralph Lauren Corp (NYSE: RL) was downgraded by investment analysts at Wells Fargo & Co. from an “outperform” rating to a “market perform” rating in a report issued to investors.

Ralph Lauren: A sick dog of a stock for the holiday's

Ralph Lauren (NYSE: RL) continues to look for hope and economic signs of life on the NYSE, with the stock down over 4% over the past month of trading. Analysts are asking questions about how the company can continue to stay anywhere near its 52-week high of $164 amid dismal personal consumption data and awful economic news from Europe daily.

Polo Ralph Lauren: How Real is this Momentum Play?

What a momentum play Polo Ralph Lauren (NYSE: RL) has been during 2011 so far.

This retailer thinks it is a dot.com from the Web 1.0 days.

Currently trading at about $ 155 per share, it is up a cool 37 % so far in 2011.

Investors, speculators and fashionable people around the world are looking at RL and asking whether it can continue. Well can it? The answer is no Polo Ralph Lauren (NYSE: RL ) carries over a billion of goodwill and other intangibles on its balance sheet. Not a good sign. Other issues such as global consumer spending in Europe is raising red flags. Enjoy the lofty values with RL while they last.

There are OTM put options on RL that are surprisingly not that expensive.

Warren Buffett and Larry Ellison are billions less rich

Sure, billionaire guys like Buffett, Ellison and Steve Ballmer have ridden the capitalistic market cycle quite in their favor over the past 20 or 30 years.

However, each of these guys have something in common other than being billionaires. They have each dropped over a billion, as in several billions, in net worth over the past year or so due to the stock market crash. It may not hurt, but it has to sting.

Ouch. Payday loan guys? lol.

Read all about it in - Billionaire Blues

Fast Eddie Lampert bets on a housing rebound

Edward S. Lampert, last mentioned here at Think Billion$ during the Sears meltdown, has been profiled today by the Wall Street Journal (WSJ, June 12, 2008, p. C4) for his new bets on the housing sector.

Eddie has recently added the following stocks to his ESL Investments, Inc. portfolio; which owns half of Sears and 40% of AutoNation. As a public service to our readers, here's what Eddie likes:

CIT Group
Centex
Home Depot
KB Home
PHH

And remember, buy low and sell high (except when shorting). Good luck and happy investing!


update -

I just noticed this YouTube video posted on Dealbreaker. Can you spot Eddie???