Tuesday, February 24, 2009

Dell: A Fallen Angel

At the current share price of $7.99, Dell is trading at 5X after-tax operating income!

If you are interested in reading my 2-page write-up on Dell, please send me an email.

Happy bargain hunting,

Wednesday, February 11, 2009

Charlie Munger: How We Can Restore Confidence

Our situation is dire. Moderate booms and busts are inevitable in free-market capitalism. But a boom-bust cycle as gross as the one that caused our present misery is dangerous, and recurrences should be prevented. The country is understandably depressed -- mired in issues involving fiscal stimulus, which is needed, and improvements in bank strength. A key question: Should we opt for even more pain now to gain a better future? For instance, should we create new controls to stamp out much sin and folly and thus dampen future booms? The answer is yes.

Sensible reform cannot avoid causing significant pain, which is worth enduring to gain extra safety and more exemplary conduct. And only when there is strong public revulsion, such as exists today, can legislators minimize the influence of powerful special interests enough to bring about needed revisions in law.