Experiences are quite nice for finding things out, but some things you don't want to experience whatever it is to find out. For instance, do you want to know what its like to be tortured first hand? For me, I'd rather just read an account. Look, reading is essentially how you are going to get most of your information on investments. You can do some gritty scuttlebutting, but you likely have a day job. I've touched on how reading non-investing articles can yield plenty of stock picks before.
A lollapalooza of events occurred today. First, I read most of the articles posted on The Browser. It's just a very well curated daily linkfest essentially. In running the gamut of gamuts of topics, The Browser inadvertently widens the scope of my reading. I get warm and fuzzy when I see an article posted that I've already read. I recommend it to everyone.
The second thing that happened was that I read this article about a nuclear waste facility being proposed in Texas. It was purely out of curiosity. This applies tangentially to my post on Energy Solutions which esssentially has a monopoly on everything but the most dangerous nuclear waste in the US. In the aforementioned article, I found an even longer article about the man behind the proposed waste facility in Texas. It's quite a damning article that offers an interesting look at whats behind a potential threat to Energy Solutions. It's also interesting because it discusses the man behind Valhi, Kronos, and NL Industries, mid cap companies that are fairly dull and easy to understand (ie. more companies that you can further research, but now have a better depth and understanding of the management). I really don't know in this case, but such negative perceptions can often represent noise that offers a rational and patient investor an entry point to profits. Judging from the PEs though, the market doesn't seem too concerned.
No lollapalooza can occur without at least three factors. The third thing that happened today was Energy Solutions closed down 13%. That constitutes a material change in the company's valuation. They guided a lower level of EBITDA than expected, which is especially worrisome considering the debt load which I addressed in my previous write up. I shouldn't moan about such things, but I do wish I had the capacity to transact in debt instruments. I don't even know how to get a real time quotes on a bond price, truth be told. I imagine that the high yield debt ES issued recently is looking pretty interesting.
I don't want to sound like a some kind of capitalist zen guru, but investing is a way of life that requires your awareness of all that's around you to maximize your gain. To invest, is not to invest, but to live an aware life and know what to ignore. I wish I was kidding, but I think it definitely helps to a) read everything and b) have a subconscious mentality that some type of investment angle or edge can be gleaned from reading everything. I'd point out that Li Lui essentially disproved the conventional wisdom about Timberland's management and made a bundle in the process.
Talk to Andrew about reading
No comments:
Post a Comment