OK, so I never got around to updating about Saturday. There was a lot of booze, that's about it. Fun times though.
Anyway, exhausted from the weekend and travel. Going to relax tonight, and have two late nights this week. After that, a little trip to LA-LA land.
Monday, March 8, 2010
Saturday, March 6, 2010
Tuesday, March 2, 2010
The Legend
I'm reading through Warren Buffett's 2009 Letter to Shareholders, and I just love his writing style. He basically goes where no other CEO will dare to go in injection humor and humility. There's a particular story that I really like, I'll add more if I see anything:
I can’t resist telling you a true story from long ago. We owned stock in a large well-run bank that for decades had been statutorily prevented from acquisitions. Eventually, the law was changed and our bank immediately began looking for possible purchases. Its managers – fine people and able bankers – not unexpectedly began to behave like teenage boys who had just discovered girls.
They soon focused on a much smaller bank, also well-run and having similar financial characteristicsin such areas as return on equity, interest margin, loan quality, etc. Our bank sold at a modest price (that’s why we had bought into it), hovering near book value and possessing a very low price/earnings ratio. Alongside, though, the small-bank owner was being wooed by other large banks in the state and was holding out for a price close to three times book value. Moreover, he wanted stock, not cash.
Naturally, our fellows caved in and agreed to this value-destroying deal. “We need to show that we are in the hunt. Besides, it’s only a small deal,” they said, as if only major harm to shareholders would have been a legitimate reason for holding back. Charlie’s reaction at the time: “Are we supposed to applaud because the dog that fouls our lawn is a Chihuahua rather than a Saint Bernard?”
The seller of the smaller bank – no fool – then delivered one final demand in his negotiations. “After the merger,” he in effect said, perhaps using words that were phrased more diplomatically than these, “I’m going to be a large shareholder of your bank, and it will represent a huge portion of my net worth. You have to promise me, therefore, that you’ll never again do a deal this dumb.”
I can’t resist telling you a true story from long ago. We owned stock in a large well-run bank that for decades had been statutorily prevented from acquisitions. Eventually, the law was changed and our bank immediately began looking for possible purchases. Its managers – fine people and able bankers – not unexpectedly began to behave like teenage boys who had just discovered girls.
They soon focused on a much smaller bank, also well-run and having similar financial characteristicsin such areas as return on equity, interest margin, loan quality, etc. Our bank sold at a modest price (that’s why we had bought into it), hovering near book value and possessing a very low price/earnings ratio. Alongside, though, the small-bank owner was being wooed by other large banks in the state and was holding out for a price close to three times book value. Moreover, he wanted stock, not cash.
Naturally, our fellows caved in and agreed to this value-destroying deal. “We need to show that we are in the hunt. Besides, it’s only a small deal,” they said, as if only major harm to shareholders would have been a legitimate reason for holding back. Charlie’s reaction at the time: “Are we supposed to applaud because the dog that fouls our lawn is a Chihuahua rather than a Saint Bernard?”
The seller of the smaller bank – no fool – then delivered one final demand in his negotiations. “After the merger,” he in effect said, perhaps using words that were phrased more diplomatically than these, “I’m going to be a large shareholder of your bank, and it will represent a huge portion of my net worth. You have to promise me, therefore, that you’ll never again do a deal this dumb.”
Sunday, February 28, 2010
Accepted
Just saw the above mentioned movie and have a new appreciation for Lewis Black. Among my favorite diatribes of his:
"
I'm going off the grid. No more Franchises, no more botox, no more "Hey, oh, lets clone another goat," and certainly no more sexual harassment lawsuits, what's wrong with saying "Hey, nice tits." When did that go out the window?
"
Love routines like this...
"
I'm going off the grid. No more Franchises, no more botox, no more "Hey, oh, lets clone another goat," and certainly no more sexual harassment lawsuits, what's wrong with saying "Hey, nice tits." When did that go out the window?
"
Love routines like this...
Monday, February 22, 2010
Correction
After a brief conversation with Jess, calling my classmates "hippies" is unfair to hippies- my classmates bathe, have other interests besides protecting koala bears, and (barely) understand capitalism.
Rather I need a good nickname for those with "tree-hugger" beliefs and professional aspirations. The leading candidate is "Business Hippies". I invite your proposals, the winner gets red meat!
Rather I need a good nickname for those with "tree-hugger" beliefs and professional aspirations. The leading candidate is "Business Hippies". I invite your proposals, the winner gets red meat!
Setting the bar high
So i've run into another dry-spell posting here. Whatever, get over it.
I saw this article today and about a Professor at Stern responding to a ridiculous email. Personally, I completely agree with the prof that students should have more respect. However, I'm guessing that the majority of my hippie-classmates will say what an a$$hole he is and whatever. Here's my response: Hippie, get your sh!t together
http://deadspin.com/5477230/nyu-business-school-professor-has-mastered-the-art-of-email-flaming
I saw this article today and about a Professor at Stern responding to a ridiculous email. Personally, I completely agree with the prof that students should have more respect. However, I'm guessing that the majority of my hippie-classmates will say what an a$$hole he is and whatever. Here's my response: Hippie, get your sh!t together
http://deadspin.com/5477230/nyu-business-school-professor-has-mastered-the-art-of-email-flaming
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