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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


quote:

Buffet is a washed up goon.


This is just false.

And I'm not some huge Buffett/Graham disciple either.






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reb13
Ole Miss Fan
Oxford, MS
Member since May 2010
9426 posts

re: Groupon: The dumpster fire of tech stocks


I'm doing an audit project on groupon, should be fun





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


He hasn't done anything noteworthy recently. Please tell me why you don't think he's washed up.

*he has underperformed even with the premiums he gets for the Buffett effect.






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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


he's a value investor. it may be cool to clown him and he's certainly not going to be some sexy growth fund manager. 76% over the last decade is nothing to sneeze at and definitely not results that warrant the label of "washed up goon." Come on bro.





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OFWHAP
LSU Fan
Member since Sep 2007
4779 posts

re: Groupon: The dumpster fire of tech stocks


quote:

Groupon is an interesting business model.... But I look around and see no one ever using it.



Just at a quick glance, it was good while it lasted but it's already been copied and improved upon in my opinion. Aside from services such as Amazon Local and Living Social, you can already get discounts through services such as Foursquare, Yelp, American Express (by linking your card to your Foursquare, Facebook, or Twitter accounts), or restaurant credits from GoPaGo or LevelUp. In the case of the latter services, there is no commitment involved when getting the discount, i.e. you do not have to purchase the discount. Instead it's credited toward your purchase if you decide to ever do business at a given location.






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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


quote:

it was good while it lasted but it's already been copied and improved upon in my opinion.


That was the fatal flaw.

It cost virtually nothing to replicate. All they had was a customer list of stingy people and a brand name.






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BennyAndTheInkJets
Arkansas Fan
NYC
Member since Nov 2010
3636 posts

re: Groupon: The dumpster fire of tech stocks


quote:

he's a value investor. it may be cool to clown him and he's certainly not going to be some sexy growth fund manager. 76% over the last decade is nothing to sneeze at and definitely not results that warrant the label of "washed up goon." Come on bro.

Most of that 76% came from great deals he got simply because he had so much capital to invest. He still deserves credit because he pulled the trigger, but shite I wish I was offered 10% preferred Goldman stock at a big discount.

In the BofA deal he basically bought stock at ~$5.15 that was trading around $7. Would I go as far to say he's a washed up goon? Probably not, but THF has a point. Value investing the Buffet way will not be nearly as profitable as it was during Warren's great run-up of the 80's to mid 2000's. That was a period of falling interest rates, disinflation, and a massive stock market rally. The pre-existing conditions for that will probably not return in any of our lifetimes.






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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


quote:

76% over the last decade is nothing to sneeze at and definitely not results that warrant the label of "washed up goon." Come on bro.


That's a massive annualized return of less than 6%. Color me impressed .

In that time frame BRK.A has UNDERPERFORMED the S&P by 41 basis points. Sounds like a helluva hedge fund manager to me...

Let me remind you that he managed to underperform on your chosen time frame and in spite of the fact that he gets ridiculous sweetheart deals.

Buffett is a has been and the way that people follow him is absurd. He's not in the top 25 money managers I would give my money to. He's probably somewhere slightly above Soros.






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NC_Tigah
LSU Fan
Member since Sep 2003
48232 posts

re: Groupon: The dumpster fire of tech stocks


quote:

He hasn't done anything noteworthy recently. Please tell me why you don't think he's washed up.

*he has underperformed even with the premiums he gets for the Buffett effect.
Agree






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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


quote:

Most of that 76% came from great deals he got simply because he had so much capital to invest. He still deserves credit because he pulled the trigger, but shite I wish I was offered 10% preferred Goldman stock at a big discount.


True, but he certainly shouldn't be penalized for attempting to maximize return.

quote:

In the BofA deal he basically bought stock at ~$5.15 that was trading around $7. Would I go as far to say he's a washed up goon? Probably not, but THF has a point. Value investing the Buffet way will not be nearly as profitable as it was during Warren's great run-up of the 80's to mid 2000's. That was a period of falling interest rates, disinflation, and a massive stock market rally. The pre-existing conditions for that will probably not return in any of our lifetimes.


Very true and it happens. Graham somewhat backed off on his security analysis methodology, chalking up much of his success to an environment of inefficient dissemination of financial reporting and a shortage of intelligent investors.

Certainly won't argue with a similar stroke of environmental luck for Buffett. And his most ardent followers are goons. This doesn't mean he is.



This post was edited on 11/19 at 8:46 pm


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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


quote:

That's a massive annualized return of less than 6%. Color me impressed




From 2000-2010?

quote:

In that time frame BRK.A has UNDERPERFORMED the S&P by 41 basis points.



Are you referring to arithmetic return?



This post was edited on 11/19 at 9:10 pm


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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


No. Geometric return. Arithmetic return would not be proper here. I did pull the data from google finance and calculated it myself, but it passes the eyeball test.





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


I accounted for dividend yield with the SP500. That is probably what you are missing.





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


quote:

Posted on 11/15/12 at 4:57 p.m.)


quote:

Maybe I'll buy some


It's up 25% from the time of that post.

I wish I had followed through on that.






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Crbello4Hiceman
LSU Fan
Lurking
Member since May 2011
425 posts

re: Groupon: The dumpster fire of tech stocks


quote:

Value investing the Buffet way will not be nearly as profitable as it was during Warren's great run-up of the 80's to mid 2000's. That was a period of falling interest rates, disinflation, and a massive stock market rally. The pre-existing conditions for that will probably not return in any of our lifetimes.


If the whole "value investing" buffet approach isn't as profitable going forward, what are your thoughts on strategy? I get what you are saying- rates are bottomed out, growth will not be near as explosive going forward, etc. I'm always open to hearing thoughts and advice on what strategy might be best going forward.






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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


Just checking in to let you know I'm not pussying out of this thread. I'll be back later for my shitty rebuttal tomorrow.





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lynxcat
Rutgers Fan
Member since Jan 2008
14152 posts
 Online 

re: Groupon: The dumpster fire of tech stocks


A good friend of mine just took a job at Groupon...I hope she is comfortable with job prospects if the company does go under.

My checklist for leaving a going to another company:
A) Stable company
B) Nice raise
C) Promotion

She got B and C...but I think A is missing.






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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


I still don't see where you are getting your numbers. All I'm finding is a -1.0% S&P total return for the millennial decade.





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Groupon: The dumpster fire of tech stocks


Last decade is not since 2000. It's since 2002.





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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Groupon: The dumpster fire of tech stocks


lol





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