It is just over a year since F Wall Street began on June 25, 2007. I first posted about the Blackstone (BX) IPO — a cautionary post warning visitors that excitement + lack of information = thanks, but no thanks. As many visitors know, my style is hardly predicated on activity. In fact, I'm more of a Charlie Munger assiduity-type investor — sit on your ass until a no-brainer comes along.

In this "rough and turbulent" market, let's take a look at the first year's success and overall performance.

Continue Reading F Wall Street Investment Performance ››

In his 1934 book Security Analysis, Benjamin Graham laid out the definition for investing versus speculating. In the 74 years since he and David Dodd penned the book, nothing in the definition has changed. That said, BPal asked a very interesting question. I answered it in the comments, but I figured I should post about it as well.

Continue Reading Value Investing vs. Business Investing ››

Folks — as you can imagine, I have been busy ripping through annual reports and financial statements like crazy. Hence the irregularity to my posting. Back in October of last year, I had a lot of time on my hands — the effects of a high market and few opportunities. That situation has reversed.

What am I looking for? The economy has been putting a squeeze on a lot of companies, slamming profit margins, revenues and earnings. When this happens, companies have to start shedding assets — human and physical — in an effort to return to normal levels of profitability. When profit margins are thin, the business' are at risk (think GM, Blockbuster). When profit margins are fat under normal conditions, the business is sound, even if it takes a substantial hit to sales.

Continue Reading What You Should Be Looking For ››

April has been one of the most difficult months of my life. It started with identity theft and ended with a 24-year-old loved one in intensive care since Friday the 18th. Without getting into too much detail, the last ten days have been very difficult.

Folks, all the money in the world means nothing if you don't live long enough to enjoy it. This is not a new revelation; still, you shouldn't wait for someone to nearly die to remember it.

This whole mess might have been avoided if he had just gone for an annual physical and blood test. Instead, he has gone through hell and back and has a long road of recover ahead of him.

Close the browser, call a doctor, and get a physical.

Your portfolio will be there when you get back.

It has come to our attention that the site's e-mail system has not been working. It seems as though this has been a problem for more than a week (maybe two).

If you've tried to e-mail me over the past few weeks and did not get a response, I apologize - I didn't get the e-mail.

All I can ask is that you try again. It is working now.

Thanks for your understanding.

Joe

I jumped in CCU last week and got out on Thursday (with a 6.5% gain) because I didn't like the bickering and I didn't want to get slammed over the long weekend. When the companies and/or banks fight, investors usually lose. Considering that there are enough workouts out there, I'm walking away from this for now.

On a personal note: I just found out (yesterday) that I am the victim of identity theft. I'm taking a break here for a bit (days, maybe a week or two) to get this straightened out with the police and my attorneys. During that time, I'll be answering comments, but don't look for any new posts.

Fun, no?

While I respect everyone's opinion, the overwhelming majority said they would rather see an update and some ads. I don't think the web designer went overboard at all. I've decided against a donate button simply because I would feel bad accepting donations from my friends on this site.

The Workout forum and Resources section should be up over the next week or so. In the meantime, take a look around and let me know your thoughts.

EDIT: What happened to the recent comments? We opted for an RSS feed for the comments because they were coming in too fast and many were getting lost. The feed is located here and can also be accessed with the navigation bar on the left.

Thanks to everyone who provided feedback both on the site and via e-mail.

Ask and you shall receive. My web designer got back to me regarding some ideas that have been posted here for forums, discussion boards, etc. He also gave me a price and, well, ouch.

Here's where we are at.

Continue Reading The Workout Forum; Site Changes ››

I just finished going on a comment-spree and I thought I should update you on a few other things as well. First, I sold my RTSX today. When engaging in workouts (as with any other investment), I am looking for both safety of principal and a satisfactory return (thanks, Ben Graham, for the definition of an investment).

As you know, I may use leverage on my workout positions or as an offset if I need to buy a business and I am fully invested. The danger in using leverage is that you can quickly rack up the losses. Here's why I sold:

Continue Reading Sold My RTSX; Workout Timeline ››

Ever since I posted the analysis on Adobe yesterday, I've had this looming feeling that a little clarification was in order. Some of you are looking for reinforcement on your long-term, buy-and-ignore portfolio; some are really trying to find those heart-pounding, mouth-watering, back-up-the-truck deals in the markets.

At today's prices, I believe that Adobe is appropriate for the former — it is a great company that appears to be selling at a moderate discount. Allow me to explain:

Continue Reading Before You Back Up The Truck On Adobe ››

I'll have to finish Workouts Work Out on Friday. Let me get some housekeeping done regarding the book and the markets. I'm not going to give you the standard "stay the course" or "now is the time to buy" garbage — there are plenty of other places to go for noise. Let's, instead, look at the news of what's happening.

Continue Reading The Markets, The Book and Comments ››

As you can imagine, I am doing very little this week—hence the lack of posts. I hope everyone had a wonderful holiday! (I did) We ended the year on a strong note with the Tribune play. Some visitors have asked for more clarification as to how I analyzed the deal and I'll post that in the new year. A quick thanks to kfh227 for one of my new favorite quotes (I've used it a dozen times when talking about our Tribune play:

Don't try to pick up coins in front of the bulldozer.

Finally, a big, huge, monstrous thanks to all of you whom have visited, contributed, and keep coming back. Since the site's launch on June 25, 2007, F Wall Street has had more than 1,000,000 visits! In my six months of blogging, I have realized:

1. It is very difficult to post something every day because, well, investing is pretty boring.
2. There are some phenomenal blogs out there. (I never really looked before I started F Wall Street)
3. Spammers will do just about anything to get links on a site. (If you need airline tickets, coupons, cheap Viagra, or Russian babysitters, let me know)
4. If I wanted to make any money with the site, I's really have to bog you down with ads. (I've made just under $110 in six months, though I do not run F Wall Street for the money nor do I expect you to suffer through a bloated advertising website)
5. It takes a long time to sell and publish a book. (But more on that in January)
6. There are some wonderful people out there that are willing to go the extra mile for complete internet strangers. (Your willingness to comment and respond to comments is awesome)

And so, as we head into 2008, let me be one of the first to wish you a happy and healthy new year filled with peace, joy, and prosperity. See you next year!

Joe Ponzio

At $33.67, there is almost no upside and big potential downside if the deal falls apart last second. Just wanted to let you know that I sold TRB. Remember Buffett's rule: Don't lose money. There is very little risk left, but the few pennies on the upside do not justify the many dollars on the downside.

Just thought you'd like to know my thoughts.

Just wanted to wish everyone a Happy Thanksgiving! There is some interesting discussion going on in From Free Cash Flow To Earnings And Back. I just had to chime in.

Eat up. Lounge on the couch. And most importantly, have fun today!

Joe

Thanks all for your kind words and e-mails. On October 17, 2007, Paul Ponzio was born. He's doing great. Mom's doing great. His sister's diong great. Me—I'm great.

Just wanted to drop you all a line that everything went swimmingly and that I'll be back on Monday.

By the way—check out Sharper Image (SHRP). Its break-up value may be around $5.60 a share. If you think the company is going to close up shop, it may be providing a nice margin of safety. If you think it will pull out of the mess it is in, it may be providing a nice margin of safety. If you think it is screwed and it will spend all of its assets before declaring bankruptcy, run. And if you aren't sure, skip it! There's another boat coming.

And now, I'm off for some long overdue sleep.

Hi all. A couple of quick points as I won't be doing a full post today. Reason: I am out raising money for our charity—today we're helping raise money for intellectually disabled children. I'll be walking up and down the streets in a bright yellow smock, handing out tootsie rolls—if you happen across North Avenue and Harlem Avenue in Chicago, please feel free to donate a few bucks.

Site Redesign

What are your thoughts on the site redesign. The changes were small—different font, somewhat better categorization (still working on it) and a You are here navigation at the top of each page.

I'd love to get your feedback because you are the ones who read it!

Excuse My Follow-through

A friend mentioned that I ought to get an MBA. I told him that it wouldn't work...that I'm two people—half super-hyper, mind-wandering maniac, part wine drinking, relax-on-a-boat lazy man. Why do I mention this?

There are a few people whom have e-mailed me or posted comments that I promised I would respond to. With every intention of following through, I subsequently forget. I apologize. If there is something you'd like to see, let me know. Remember: I don't give investment advice or stock tips!

That's it for today. I'm going back to the streets—have a great weekend all!

Time is the friend of the wonderful company, the enemy of the mediocre. —Warren Buffett

I just wanted to quickly post that I am going on vacation today (August 9, 2007) and will be back on Monday. If I get a chance, I'll try to get something online for Friday...but no guarantees (or should I say, weather permitting).

I will have access to email if you want to drop me a line.

And no, I won't be watching my stock prices while I'm gone.

Barring any major happenings that require a post, this will be my last weekend message. I will no longer post a "Random Thought Saturday", opting instead to post a Random Thought "Whenever". F Wall Street has more than exceeded my expectations, and I have to scale back a bit.

Continue Reading Last Random Post Saturday ››

In Part 1, shortly after my brother, Ben Ponzio, won a World Series of Poker bracelet, I decided to draw a comparison between poker and investing. In reality, the similarities are scary. If you are great and one, you can (and should) be absolutely great at the other. The traits of a successful, long-term poker player and those of a successful long-term investor are almost identical.

Continue Reading Investing And Poker, Be Great At Both (Part 2) ››

It is not easy running a new blog. Being just 17 posts young, F Wall Street has had more than 28,000 hits, has been reprinted on Yahoo! Finance, is quoted on CNBC's Buffett Watch, and more. Of course, there aren't enough posts to satisfy everyone's curiosity or interest, so I have been getting a ton of emails from visitors.

I'll continue responding to emails, but I would like to post my answers to some of the common questions people have from the contact page.

Continue Reading To Answer Your Questions... ››

On June 17, 2007, my brother won a World Series of Poker bracelet, nearly $600,000, and a spot in poker history. As my family and I watched the final table online (thanks to Bluff Magazine), I could not help but think about the amazing similarities between poker (in this case, Texas Hold'em) and investing.

Continue Reading Investing And Poker, Be Great At Both ››

It's the 4th of July here in the U.S. I figured a post about holidays and how they affect your investments—or wonderful businesses—would be appropriate. After all, we invest because we want our retirement to be "Independence Day" every day—a celebration of financial independence.

So here goes: The fact that the market is closed on a Wednesday has absolutely no effect on the value of a business. No matter what the gamblers do tomorrow or Friday, your business is operating the same.

No go eat a hot dog and play in the pool. Happy 4th of July!

I certainly won't say it's impossible; but, it is extremely difficult. While some experienced people can make money with tax certificates, the problems the individual investor faces today are numerous:

1. You are up against institutions. They bid the % on the certificates to 0% so you can forget about 1st year income;
2. Once you have the certificate, generally more than 99% of them will repay their taxes/become current in the first 6 months. Of the remaining, 90% of them will get current by the end of the first year.
3. While you hold the certificate, you will have very strict requirements imposed on you as far as sending/posting notices, filings, etc. before you can get the property 3 years later. One missed step and you could lose your entire investment.

Continue Reading Tax Lien Certificates ››

I appologize but I have some personal things to attend to. I will be gone this morning and may be gone for the entire day.