January 18, 2008 by Joe Ponzio

So, you’re sold on using arbitrage to enhance your portfolio. In fact, you’ve always known that arbitrage can offer virtually risk-free profits; still, it can be somewhat scary to jump in with both feet. Rather than getting into the theoretical aspects of arbitrage, let’s take a look at some real…

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January 16, 2008 by Joe Ponzio

If you’ve read Mohnish Pabrai’s The Dhandho Investor, you”ll likely recall a chapter entitled “Use Arbitrage!” If you”ve been following F Wall Street for a while, you”ll remember (and possibly have made money on) Use Arbitrage! The Tribune Company Example. Why do we say you should use arbitrage? In fact,…

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January 14, 2008 by Joe Ponzio

There is a school of thought that says that the value of a business is entirely in its future cash flows and that all assets are tools that provide that cash flow. In essence, many people believe that assets and equity should be ignored entirely. Let’s look at it from…

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January 10, 2008 by Joe Ponzio

This post is totally out of sync with my 1950s & 1960s Buffett discourse; however, Night ran into a problem that needs fairly quick solving. His sister gave him a sum of money to begin investing and, after explaining how the markets work, that price follows value, etc., he purchased…

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January 8, 2008 by Joe Ponzio

If you recall from an earlier post, I showed a quick potential profit from Sharper Image – in that case, a few-day return of more than 40% because the stock was trading so far below its break-up value. As time marches on and the ability to generate cash seems a…

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January 7, 2008 by Joe Ponzio

Welcome to 2008 all. I am going to spend the next day responding to all of the comments from the past two weeks. Let’s get to the heart of the matter: What is going to happen in 2008? It is a question I have been hearing for the past three…

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December 27, 2007 by Joe Ponzio

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…

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December 20, 2007 by 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…

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December 19, 2007 by Joe Ponzio

The retail sector has been getting crushed lately. Though that breeds panic in most, it presents wonderful buying opportunities for long-term investors. Let me preface with this: I have heard it grouped in the same conversation with sub-prime loans. Are we really to believe that people will stop shopping? Can…

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December 17, 2007 by Joe Ponzio

The markets have done some crazy things the past few days weeks months years. In fact, it is enough to make one’s stomach turn. That is, of course, until you remember the key to owning stocks: There is a business under there – and that is what drives the long…

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