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Archive for October, 2012

Weekend reading

October 19, 2012 1 comment

Longleaf Partners letter: Always worth reading

Charlie Munger lecture: Latest from Munger

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Categories: Reading

Weekend reading

October 12, 2012 4 comments

Notes from Pabrai’s presentation: Great stuff on the basic skills needed to be a great investor

Graham and Doddsville Newletter: Latest edition

Categories: Reading

Portfolio update

October 11, 2012 Leave a comment

In the last few weeks I’ve made some small changes to the portfolio.

I sold out of Palladon. I like the company and the future prospects. Although it was a very small position to begin with. Even after having tripled it was less than a 5% position. So I decided to take the cash and go elsewhere.

I cut back on my YNG position. YNG was and is still one of my top positions. So the reduction in size was due to other investments available to me.

I increased my position in Dolan. Dolan has struggled recently with its foreclosure business. Although its future in the eDiscovery business is very strong. Recent preview of Q3 numbers hint at a good quarter for the eDiscovery business.

I bought a position in Kingsway Financial Services. This is a stock that I’ve been looking at for over a year now. I became aware of it when I saw Stilwell funds build a position in KFS. It is an interesting situation. KFS is a very illiquid stock. Stilwell owns over 18% of the company. It recently got permission to increase its holding to 19.9%. So why would a very smart investor want to buy another 2% position in a company that is already very illiquid. Clearly the investor has an exit strategy in mind. Although you want to use another investor’s position as a starting point only. When you look at KFS, it is a net asset play. Also, the management team is turning around the business and focusing on higher margin business. The CEO and CFO of KFS are superb operators. The stock has doubled in the last month. Although there is still plenty of upside. Stilwell recently filed a Form 4 where it bought shares of KFS at $3.7. So even at today’s prices, it holds great upside.

Categories: Updates

Taro Pharma: Citi’s presentation to BOD

October 5, 2012 10 comments

Great stuff to look at for Taro holders. I can’t imagine how Citi was able to mess with the numbers to present any valuation that would justify a $39.50 valuation.

Categories: Updates

Weekend reading

October 5, 2012 Leave a comment

Munger’s wisdom: Great collection of Munger’s speech and writings

Interview with Prem Watsa: Always great to hear his thoughts

Categories: Reading