Dr. Michael J. Burry at UCLA Economics Commencement 2012

Dr. Michael Burry of Scion Capital and subprime shorting fame gave the UCLA Economics commencement speech this year and the video is embedded below.  Burry was an undergraduate there himself. One of the best quotes from Burry’s speech is: “As it turns out, information is not perfect, volatility does not define risk, markets are not efficient, the individual is adaptable.”


T2 Partners (Whitney Tilson) Presentations On Berkshire Hathaway (BRK)

T2 Partners, is bullish on Berkshire Hathaway, the holding company headed by Warren Buffett. In a recent presentation, Tilson laid out an investment thesis arguing that Berkshire was worth $178,400 per share. He also noted that the company should be worth $200,000 a year from now.

You can read the full presentation here>>


Jim Rogers on the Future

Jim Rogers Interview on being successful, investing in the future, and preparing for civil unrest
His phone number in Alabama was 5.

Bill Ackman & Pershing Square’s Presentation on Canadian Pacific (CP)

Below is Bill Ackman & Pershing Square Capital’s presentation on Canadian Pacific (CP), entitled ‘The Nominees for Management Change.’ As we’ve detailed, Ackman has gone activist on CP and is seeking to shake-up management. In the presentation, the hedge fund highlights their past success with General Growth Properties (GGP), JC Penney (JCP), and more. Currently, CP is Pershing’s second largest investment as they own 14.2% of the company.

You can read the full presentation here>>


T2 Partners (Whitney Tilson) 2012-January Letter

Whitney Tilson and Glenn Tongue’s hedge fund T2 Partners investor letter, the letter mentions some of their longs: Pep Boys (PBY), Goldman Sachs (GS), Iridium (IRDM), Resource America (REXI), Dell (DELL), Howard Hughes (HHC), Citigroup (C), and Microsoft (MSFT). Also, they mention they are long SanDisk (SNDK) and bought more after the company provided weak guidance.

Read the full letter here >>


Presenting The World’s Most Profitable Hedge Fund/Bank Ever

When one has $2.9 trillion in costless AUM (because if the cost is breached, one just doubles down, especially if one prints the money), it is not all that surprising to generate $77 billion in profits in one year, or even $385 billion in profits in the past 10 years. Yet it is still a stunning number considering the rest of the $2 trillion hedge fund industry lost about 10% in 2011. Which is why we all bow down to what is without doubt the world’s most lucrative and profitable generator of P&L in history: the Federal Reserve, which for the second year in a row has printed (pun intended) over $70 billion in profits. And who is the lucky recipient of this profit? US Treasury of course, which for the second year in a row will pocket all the proceeds from Portfolio Manager Ben’s immaculate trading perfection. Of course, there is one caveat for this spotless performance sheet: what happens when Fed interest expense surpasses interest income? But why worry – everyone tells us this can never happen, so it obviously can never happen…. I think Ben will be the next Warren Buffet!

Total assets on the Fed’s balance sheet stood at a near- record $2.92 trillion on Jan. 4. The central bank expanded its portfolio by purchasing $2.3 trillion in U.S. Treasury debt, mortgage-backed securities and housing agency debt to push down longer-term interest rates once its benchmark lending rate hit zero in December 2008. The Fed expanded its portfolio in two rounds of asset purchases, known as quantitative easing.

Because the Fed funds itself by emitting currency on which it pays no interest, or by paying 0.25 percent on the deposits banks keep at the Fed, the central bank enjoys positive interest income. The yield on the 10-year Treasury note was 1.97 percent at 11:27 a.m. today in New York.

Bill Ackman: Invest in the Business You Can Own Forever

Bill Ackman talked his investment philosophy during his lecture in Floating University (HT: Valuewalk). Ackman listed his four keys to successful investments:

1. Invest in public companies

2. Understand how the company makes money

3. Invest at a reasonable price

4. Invest in a company that could last forever

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