I agree with you and the tenents of net-net investing, but the combination of laziness and not knowing what to do with the cash and an aversion of paying capital gains, keeps me holding on. And, somehow I rationalize an excuse for holding on (have the ability to fool myself)like the business is better than it really is. I need to remember that net-nets are a short term strategy and to get out when the price pops.
I recently purchased a small stake in LANC (I believe that was your find), and I to have been watching Disney. I never stumbled upon LANC before, and based upon its past performance which appears excellent, I started taking a small position.
As for net-nets, the topic of this thread, I took a shot on DAIO. This appears a pretty risky situation and I probably should have steered away from it, but dollars for 60 cents was tempting and a friend of mine in the 'Valley' said they were once a leader in their field, so they have or had somewhat of an established business and I had some spare cash sitting around so . . . For sure, I'm out on the first pop on this one, if ever given the chance.
I am very seriously looking at CSE (Case/New Holland) situation. As Mike Burry said, seems fairly certain that the deal will go through, but I am reluctant to commit funds in anticipation of several net-nets that you might be sharing with the thread in the near future. |
