My weapon of choice as a stock picker is research; it’s critical for me to understand a company’s value before laying down a dime. I really had no choice in this matter, for when I first happened upon the writings of Benjamin Graham, I felt as if I was born to play the role of value investor. All my stock picking is 100% based on the concept of a margin of safety, as introduced to the world in the book "Security Analysis," which Graham co-authored with David Dodd. By now I have my own version of their techniques, but the net is that I want to protect my downside to prevent permanent loss of capital. Specific, known catalysts are not necessary. Sheer, outrageous value is enough.
Peer to peer lending has grown rapidly since Prosper and Lending Club opened their doors in 2006 and 2007, respectively. Prosper has closed over $400 million in loans to date and Lending Club just passed the $1.6 billion mark. Both of these companies provide a similar offering – the ability to invest in unsecured debt, most often for credit card consolidation. While neither of these companies are currently in the market for secured debt, the newest entrant to the P2P space, Realty Mogul, does only secured debt. All of the loans available by Realty Mogul are secured, in first position, by residential real estate.
PeerStreet’s mission is to open up a particular segment of the real estate market — residential, typically non-owner occupied — to a wider swath of investors, thus adding capital to the system and ultimately bringing down borrowing costs. More importantly, by tracking the data on every loan and providing greater insight on the lender and the property,
PeerStreet aims to insert accountability and transparency into a market that has historically been riddled with opaqueness. "What happened in the crisis is there was practically no underwriting — if something could be sold it would be made," Burry said in an interview. "It’s important for the next-generation alternative lending model that there be controls in place. There’s somebody at the door checking for excess credit risk."
nymag: Michael Burry, Real-Life Market Genius From The Big Short, Thinks Another Financial Crisis Is Looming
The last line of the movie, printed on a placard, is “Michael Burry is focusing all of his trading on one commodity: Water.” It sounds very ominous. Can you describe this position to me?
Fundamentally, I started looking at investments in water about 15 years ago. Fresh, clean water cannot be taken for granted. And it is not — water is political, and litigious. Transporting water is impractical for both political and physical reasons, so buying up water rights did not make a lot of sense to me, unless I was pursuing a greater fool theory of investment — which was not my intention. What became clear to me is that food is the way to invest in water. That is, grow food in water-rich areas and transport it for sale in water-poor areas. This is the method for redistributing water that is least contentious, and ultimately it can be profitable, which will ensure that this redistribution is sustainable. A bottle of wine takes over 400 bottles of water to produce — the water embedded in food is what I found interesting.
This may well be because Obama was on the golf course in Hawaii when the WSJ article hit.
I am shocked that executives at some of the worst lenders were not punished for what they did. But this is the nature of these things. The ones running the machine did not get punished after the dot-com bubble either — all those VCs and dot-com executives still live in their mansions lining the 280 corridor on the San Francisco peninsula. The little guy will pay for it — the small investor, the borrower. Which is why the little guy needs to be warned to be more diligent and to be more suspicious of society’s sanctioned suits offering free money. It will always be seductive, but that’s the devil that wants your soul.
immutable is a powerful concept, can be applied in many areas
but people also need to mutate data
to achieve that, u create a new thing, a new immutable one,
new thing = old thing + edits
actually, old thing = nothing + edits
and edits are immutable
so everything = nothing + edits + edits + ….
code version system follows this pattern
database shall follow the same pattern
State: PENDING -> RUNNING -> DONE
ErrorResults, a pointer to ErrorProto
if it’s nil, it means success
otherwise, error happens