Billionaire Steve Wynn: Building Las Vegas (2014 video)
[25:50] “We never risked the firm. Never risked the firm. My responsibility to my employees, my stockholders and such; that I can’t promise to be right all the time. No one can. You make calls. Sometimes they’re right, sometimes they’re wrong. But capital structure allows you to survive the inevitable cycles of business, which go up and down as surely as sunrise and sunset, except we don’t know the timing. They allow you to survive your own miscalculations. Capital structure, I learned at a young age, thanks to Mike Milken who taught me this story; capital structure is everything. And I’ve always had a capital structure that was bulletproof.”
Wynn’s answer about building a good company culture from the 33:50-40:58 mark is also worth a close listen.
When we discover the trading that works for us, we’ll discover many approaches to trading that don’t work for us. Those will be “failures”, but there will be important information in those failures. The key is to fail in planned ways, with modest risk taking. You can’t find your success if you blow through your trading capital. Developing as a trader is all about controlled failure and learning from what works and doesn’t work.
* Source: http://traderfeed.blogspot.in/2017/01/seeing-markets-better-by-trading-with.html
- New and developing traders overvalue finding a strategy to copy. It’s not about copying. It’s about exposure to different setups and then experimentation with different setups and then determining the setups that work best for you.
- The new and developing trader needs exposure to many different setups. Setups that are diverse and require different personality sets to excel. Setups used by active traders who are winning with consistency. Setups that offer different talent sets to thrive.
- And then the new and developing trader needs to experiment. They need to fail. They need to win. They need to fail some more. They need to archive their winning and make note of their failing. It’s a process. It’s a process of failing and winning and failing some more and recording successes over time that helps the trader then build his business.
- Soon through exposure to various setups the new and developing trader will find setups that are best for them. Soon the better new and developing traders will get sick of losing with patterns that are not best for them and in their own time eliminate them.
* Source: http://www.smbtraining.com/blog/fail-win-and-then-fail-some-more-to-become-a-winning-trader
“The facts are overwhelming. Stocks of spinoff companies, and even shares of the parent companies that do the spinning off, significantly and consistently outperform the market averages.” – from You Too Can Be a Stock Market Genius by Joel Greenblatt
- In simplest terms, a stock spinoff is a tax-free divestiture of one company by another, which results in the shareholder of the original company now owning shares of both. The net effect is that the separate companies are now freed up to focus on their respective core businesses.
- Per a Deloitte study, conglomerates tend to be undervalued, likely because investors are reluctant to assign premium valuations to many-faceted corporations with fewer synergies than more streamlined and focused businesses.
- The result of the spinoff is that both the “spinner” and the “spun” companies appear more transparent in their operations and business results, and thus are more attractive to would-be investors.
- The idea that streamlining unlocks value for both parties seems to be borne out in the actual returns.
- Investing in spinoffs, however, may not be as simple as the index returns suggest. For one thing, spun-off shares tend to take a tumble in the days and weeks after being spun, which could lead many investors to sell these unfamiliar shares out of their portfolio.
- Although investors might think this initial weakness is signaling dire prospects for the new company, the reality is that the weakness in the new shares has little or nothing to do with the fundamentals of the company. Rather, the decline is due to reasons that are mostly technical. Credit Suisse explains that the new shares may not meet the criteria necessary to remain in the index or portfolio that holds the parent company, and so forced selling occurs. Eventually, the forced selling subsides, and the shares recover.
- Spinoffs are not without risks, though, and they are by no means universally successful. In truth, some spinoffs can be the result of a parent company wanting to jettison unwanted liabilities or lagging businesses, and for these reasons, spinoffs such as these, which are now cut off from the resources of the larger, perhaps more diversified parent firm, can be especially vulnerable. As always, investors need to take these factors into consideration when entertaining a prospective investment.
* Source: http://www.fortunefinancialadvisors.com/blog/stock-spin-offs-a-global-perspective
Simple: They keep surprising by making new highs. And that’s why market participants keep buying them on every dip.
Here’s a classic example: BPCL stock broke out to NEW HIGH in 2014, along with Nifty. It was a leadership stock and just watch what BPCL has done since then. [Check the source for the chart]
* Source: http://stateofthemarket.net/2017/01/what-leadership-stocks-do-in-bull-market/
“It has struck me that all men’s misfortunes spring from the single cause that they are unable to stay quietly in one room.” -Blaise Pascal
- Gates: I also remember Warren showing me his calendar. [For me], I had every minute packed [and thought] that was the only way you could do things….The fact that he is so careful about his time. He has days that there’s nothing on it.
And the importance of keeping an open schedule was also discussed by Charlie Munger at the 2016 Daily Journal Meeting:
- One is that we spend a lot of time thinking. Our schedules are not that crowded.
- Our system has been to sift life for a few opportunities and seize a few of them.
- We don’t mind long periods in which nothing happens.
* Original link