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Equity builds up as the shareprice increases, maintaining the margin of safety. Stop trying to turn this into a financial version of Zeno's paradox.

You seem to forget that the equity you build up in a position acts as a margin of safety just as well. You also seem to forget that the decision to sell is based on the company reaching its intrinsic value. It doesn't come up at any other price level except if a better investment opportunity...

From a moral standpoint, legally avoiding income taxes is no worse than having a cestoda removed from your intestines.

Exactly. The idea is that over time the markets are efficient in recognizing value. A value investor may try and look for a catalyst that ensures that value will be recognized by other market participants as well. Another option is to become an activist shareholder and unlock the value yourself.

I'm not catching your drift. Suppose I buy a stock for $40 that I determine is worth $80. If the stock goes to $50 this doesn't affect my margin of safety as I'm sitting on a 25% profit. You seem to forget that the equity you build up in a position acts as a margin of safety just as well...

Buying a stock: 1. Only buy stocks at a discount to their intrinsic value. This provides you with a much needed margin of safety. 2. Intrinsic value can be determined in different ways. Different investors will come up with different values for the same stock, all determined using a...

I remember you tried trading on a number of different instruments some time ago. Why did you settle on fx?

I don't understand why the OP is asking this question. There is no way it can be ruled out, except by prejudice.

It's loaded up with debt, yet it has little tangible assets. The assets that they do have produce losses. We'll see these guys in chapter 11 real soon. Not suprising to see that it's trading at the price of an option.

Eurex: lower commissions and greater leverage make for a more efficient application of my capital. Money I do not need for margin is swept into an interest baring account and invested into stocks I select based on valuations.

That's what I'm saying. Member banks will be left holding treasuries while everyone else will foot the bill. The treasuries can then be used to start a new reserve bank.

It would certainly be easy to stuff the Federal Reserve with troubled loans and have the entity collapse. The troubled loans would be wiped out and the treasuries could be used to fund a new reserve bank. The destruction of the savings of millions of Americans (bank deposits) that were loaned...

Christ, are the Fed trying to bankrupt themselves? From the two articles that were posted it seems that the Fed are trying to impliment a system where the Reserve bank buys treasuries using bank deposits. The banks will then be able to exchange their own corporate debt for treasuries at a...

Works better than cutting interest rates.

His strategy was to sell naked puts when premiums were at historic lows. He got what was coming to him.

This really touches the heart of the issue. The classification of something being a disorder is based upon subjectivity. Usually a relative maladjustment to an imposed environment is enough to describe something as a disorder. The diagnosis is not based on a bodily condition, it's based on what...

By EEM I assume you mean emerging markets. Buy OTM puts on the Bovespa to reduce the risk of a sell off in emerging markets as well as to reduce risk of a market shift away from your global stagflation scenario.

What you're experiencing is a shift within the perceived pendulum of inflation and deflation. The markets are clearly anticipating an ECB rate hike tomorrow and they expect the money supply to tighten somewhat. The result is that market emphasis is shifting towards deflationary pressure stemming...

Buffet is in a rush to trim down his huge cash position. He knows the mechanics of inflation very well and realizes that his cash positions are the least valueable part of his business.

I love recessions but I can't stand the marching band of pessimists and nay-sayers that appears with it. I can't stand mass behaviour in general, but it's all the more tolerable when it borders on euphoria. When terms such as "powerlessness", "helplessness" and an "onslaught of dispiriting...