Do you think the biggest challenge with these "early Buffett" illiquid plays is less about the business itself and more about the "patience risk"—where the stock stays disconnected from its fair value for years simply because it lacks a catalyst to wake up the market?
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In these kind of situations, I try to look out for some sort of catalyst: spinoff, transformation, strategic review, forward visibility, company sale etc. Without some sort of catalyst, time is not an ally and it may be dead money for years. Just like in Japan with a lot of perennial net nets.
Do you think the biggest challenge with these "early Buffett" illiquid plays is less about the business itself and more about the "patience risk"—where the stock stays disconnected from its fair value for years simply because it lacks a catalyst to wake up the market?
I’ve subscribed and would be happy to support each other. :)
Jorrit
You bring forward a valid point, Jorrit.
In these kind of situations, I try to look out for some sort of catalyst: spinoff, transformation, strategic review, forward visibility, company sale etc. Without some sort of catalyst, time is not an ally and it may be dead money for years. Just like in Japan with a lot of perennial net nets.