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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (55050)	3/17/2015 12:32:40 PM
From: gizwick	1 Recommendation Recommended By bruwin Read Replies (1) \| Respond to of 78750

I am just glad that I read that book on why dwersification doesn't make dollars and sense. Sold out all losers when it was evident they were dragging my portfolio down and put it all into BBX at average cost of $14.25 and a little BFCF. BBX is complexed due the corporate structure of BFCF and BBX and some of their issues with past problems. However, if you take time to understand and investigate the companies you see that true value is hugely missed by Wall Street. Just based upon holdings of their vacation ownership timeshare company Bluegreen it is worth considerably more. Look at the comparison with DRII: It's interesting that while Sales of DRII are about 50% more than Bluegreen, both have about the same Net--Income-before-Tax at ~$110M. Now, the market cap of DRII is $2.48B so if you take 46% of that (representing BBX's share of Bluegreen) you get $1.14B. The $1.14B divided by the number of BBX share outstanding (17.56M) gives you a BBX shr value of JUST the Bluegreen asset of $64.96 per shr! That does not count The other businesses and Texas / Florida real estate partnerships with Joint Venture partners in building many ongoing projects like family homes, apartments, etc. BBX owned the land at a very discounted basis and sold half to the developers. "We try to avoid buying a little of this or that when we are only lukewarm about the business or its price. When we are convinced as to attractiveness, we believe in buying worthwhile amounts." -- Warren Buffett, 1978 Berkshire Hathaway letter to shareholders