I was planning on doing an entire write up on my thoughts on Dole now that it is up almost 50% since I wrote my articles on it and its competitors, but these two links from the Motley Fool and Seeking Alpha respectively, do a good job of talking about most of what I was going to. Why is This Insider Buying Shares of Dole? Top Insider Buys Filed on August 15th.
I wonder what Mr. Murdock knows or expects to happen? Since July 24th he has bought almost 5 million additional shares and he now controls just fewer than 62% of the company. I wonder if he is thinking about taking the company private again or if he knows or expects a spin off or asset sale to happen.
In any event, it is usually a good sign to see an insider buying this amount of stock before the company is expected to announce some kind of plan to enhance the value of the company.
In my opinion, Dole is still undervalued but it has come to a lot closer to my estimate of intrinsic value. The almost 50% appreciation in stock price thus far has come on almost zero news, so I am excited to see what kind of price movement happens when and if Dole announces some kind of spin off or asset sale. The following are the links to my four articles detailing Dole, Chiquita, Fresh Del Monte, and my concluding thoughts: Part 1, Part 2, Part 3, and Part 4.
From Farnam Street Blog, @farnamstreet on Twitter who I would highly recommend following, they give some quotes on learning.
From Psychology Today, and tweeted by @favillapsych who I would also recommend following, they give you examples of how geniuses think and how to improve your thinking. I especially like this portion of the article, which I think is very applicable to the investment world, quoting from the article:
A distinguishing characteristic of genius is immense productivity. Thomas Edison held 1,093 patents, still the record. He guaranteed productivity by giving himself and his assistants idea quotas. His own personal quota was one minor invention every 10 days and a major invention every six months. Bach wrote a cantata every week, even when he was sick or exhausted. Mozart produced more than six hundred pieces of music. Einstein is best known for his paper on relativity, but he published 248 other papers. T. S. Elliot’s numerous drafts of “The Waste Land” constitute a jumble of good and bad passages that eventually was turned into a masterpiece. In a study of 2,036 scientists throughout history, Dean Kean Simonton of the University of California, Davis found that the most respected produced not only great works, but also more “bad” ones. Out of their massive quantity of work came quality. Geniuses produce. Period.
From Deloitte, The Persistence Project and its associated articles. Some of the links are pretty dry, and while I do not necessarily agree with everything they put forward I do think the articles contain some very good information about what makes certain companies great in comparison to others. Quoting from the site:
Discovering the causes of superior corporate performance
Trying to understand what makes great companies great is the defining quest of popular management research. Sadly, like the quests of great literature – from the grail to the fleece – the search seems endless. Even the most famous and influential efforts at uncovering the causes of enduring success have of late been knocked off their pedestals, and often for good reason. Why should we bother even to try?
Well, if George Mallory wanted to climb Everest because it was there, then, following Thomas Berger, we determined to try our hand at the recipe for persistent superior performance precisely because it isn’t there.
To make any progress, we recognize we’ll have to try a different approach. We’ve begun with advances in statistical techniques to define a unique sample. You can read more about that in our monograph, A Random Search for Excellence.
I was planning to get right into my 2-week plan that I outlined here a couple days ago, but since my internet was out yesterday I decided to start The Investment Checklist. On top of hearing that this book is fantastic, I hope it helps me refine my checklists and also helps me figure out a way to more efficiently maximize my research and analysis time.
After I get done the reading I will officially start my version of deliberate practice that I talked about the other day.