Research

Investment Ideas of the Week 7-9-12

Last week we released updated reports on some of our core holdings, including Berkshire Hathaway, The Howard Hughes Corp, and Greenlight Capital Reinsurance.  We also reviewed a potential holding inclusion, Burger King Worldwide, in which we have been tracking since its previous life as Justice Holdings.  We also released a series of articles on mREITS as that sector has continued its hot streak.

PORTFOLIO HOLDINGS

  • Berkshire Hathaway (BRK.B, BRK.A) 

As everyone knows, Warren Buffett and Charlie Munger are living legends in the investing world.  Despite the fact that Berkshire Hathaway (BRK.B, BRK.A) was originally an investment mistake made by Warren Buffett in response to Seabury Stanton trying to pull a fast one on him, Berkshire Hathaway has become one of the most widely admired corporate holding companies and it sports a $206B market capitalization.  READ MORE

  • The Howard Hughes Corporation (HHC)

Our firm owns The Howard Hughes Corporation (HHC) and we have owned it since November 2010, when it was spun-off from General Growth Properties (GGP).  We are pleased that our investment has nearly doubled in this time. READ MORE

  • Greenlight Capital Reinsurance (GLRE)

Our firm owns Greenlight Capital Reinsurance (GLRE) and we have owned it since September 2009.  We were pleased that Greenlight not only generated a solid profit of $1.75 per share, we were especially pleased that its net written premiums grew by 45% in Q1 2012 versus Q1 2011. READ MORE

mREITS: American Capital Agency Corp. (AGNC), Capital Mortgage Investment (MTGE), 

  • We previously had a position in American Capital Agency Corp. (AGNC) and we noted that it went ex-dividend on June 19. We also noted that AGNC’s smaller mREIT brother American Capital Mortgage Investment (MTGE) went ex-dividend on the same date. READ MORE
  • We are currently invested in CYS Investments (CYS) and we previously held a position in American Capital Agency (AGNC). In an attempt to avoid the nearly 7% estimated market price premium relative to estimated forward book value for AGNC, we will reevaluate the industry-leading mREIT titan Annaly Capital Management (NLY), Chimera Investment Corporation (CIM) and CreXus Investment Corporation (CXS).  READ MORE

Burger King Worldwide (BKW)

We are unimpressed with Burger King Worldwide (BKW) as an investment.  Burger KING?  Not from where we’re standing!  More like Burger Dethroned!  Wendy’s (WEN) now generates more revenue than BKW.  BKW is selling off 278 of its corporate-owned restaurants to Carrols Restaurant Group, Inc (TAST).