Lecture 4: An Investor Discusses a Distressed Technology Company

The war stories continue.   In this lecture an experienced investor speaks about how he found, valued and managed his investment in a distressed technology company, MIPS Technologies, Inc.

Lecture embedded below:

Class Notes #4 Investor Buying Distressed Tech Company

Relying On Old-Fashioned Stock Picking, Lee Ainslie Reports His “Strongest Quarter” Ever

Lee Ainslie's Maverick Fund USA enjoyed its "strongest quarter in the fund's history" during the three months to the end of June. According to a copy of the firm's second-quarter letter to investors, which ValueWalk has been able to review, Maverick Fund USA gained 18% in the second quarter. Following this performance, the fund was Read More


You may wish to revist this depending upon your level of investing knowledge.  You should learn about one type of search strategy to find unreflective (uneconomic) forced selling.

Remember that reading a case study about investing is a bit like reading about sex or sky-diving.  Doing is different than observing.  Can you act calmly and rationally during a bear market to buy a company after a huge price decline assuming there is value above price?  A severe bear market (1929, 1974, 1987, 2008) feels like this (go to 1 minute 45 seconds of this video)http://www.youtube.com/watch?v=P6PhbLxLGno. Would you be able to act on an opportunity feeling such fear?

I would be interested in readers thoughts on what they learned or what they question.