I returned and saw under the sun, that the race is not to the swift, nor the battle to the strong, neither yet bread to the wise, nor yet riches to men of understanding, nor yet favor to men of skill, but time and chance happeneth to them all.
Despite our best efforts, the complexity of reality prevents prediction.
Tuesday, October 21, 2008
Friday, October 17, 2008
Strategic Hotels
I was drawn to Strategic Hotels (NYSE:BEE) on hearing about Bill Gates taking up a stake in it via his investment company Cascade Investments. Value investors like Bill Gates are usually early to the party. The price has nearly halved since he bought shares and is around 4$ today( 17 Oct 08).
Recently I saw a report that Bill is now going to take an active strategic role in the business.
My guess is that at this price he can simply take over the company, Bill is no stranger to the hotel business, and has a stake in the Four Seasons Hotels.
I will skip detailing a valuation of the company here, I think it is cheap. Bill is no fool and I assume that he has done more due diligence than I will ever be able to match.
I am going long Strategic Hotels.
Recently I saw a report that Bill is now going to take an active strategic role in the business.
My guess is that at this price he can simply take over the company, Bill is no stranger to the hotel business, and has a stake in the Four Seasons Hotels.
I will skip detailing a valuation of the company here, I think it is cheap. Bill is no fool and I assume that he has done more due diligence than I will ever be able to match.
I am going long Strategic Hotels.
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