Before I delve into this post, I would like to preface that this does not advocate Trump for his presidency or push my political beliefs. This, after all, is a value investing blog. I simply came across this book when in the book store (yes people still go to those) and couldn't help but buy it out of curiosity. At my previous job, during end-of-year office presentations this is a book that we would often joke that a managing director would be reading. It made me wonder how many financiers have actually taken the time to read it and whether it was worth the read. I do recommend the book for it's entertainment factor, but not has a must-read book for practical business or investing application. However, there are a few over-arching themes and points made within his "The Elements of the Deal" chapter that I think we can garner and utilize successfully in investing. Outside of these themes is mostly a biography of Donald Trump covering his life up until the late 1980's written with Trump's well-known chutzpah (for better or for worse). … [Read more...] about The Art of The Deal
When I was growing up and first learned about dividends, I thought it was the greatest thing that I had ever heard to be true. "You mean if you own some stock, you can really get paid cash every so often, and potentially live off of it?" No doubt, I was hearing about people who were making thousands in dividends. Wouldn't that be nice? It wasn't until later I learned how much stock you would need to be able to live off of dividends, and even later still did I learn that maybe dividends aren't the greatest thing in the world. … [Read more...] about Dividends or no dividends?
From The Ten Commandments for Business Failure by Donald Keough, there is a great section covering Coca Cola's diversification into the wine business. For years, Coca Cola met with consultants who would pitch acquisition ideas to diversify their business. They said the "core business of soft drinks and juices gave [coke] no hedge against the future and the comany needed to look around to acquires businesses that were compatible but different. From there, they were pitched a nice wine business and they bought it. Robert Woodruff, the former president of the Company (and also the one who made Coca-Cola the cultural icon it is today), decided to take a "personal look at this wine business "his" company had gotten into." Below is the excerpt of what Woodruff told Keough after visiting the winery. … [Read more...] about What a bad business looks like