morning all, page-9

I remember watching the smorgons style of investing in the .com boom days.
Basically, they knew that there was going to be irrationality (on the upside, rather than downside) - and they had no idea really of the companies they were investing in. (things like ecorp, looksmart and who knows what).

What they did know, is that if they put down $50m, $1m into 50 different companies, and 1-2 of them took off, it would more than make up for the $50m they were putting up. A bit like a race where if you put a bet on every horse, if any one of them wins, it covers more than the cost of the entire bet... course people said, in this race, there doesnt need to be a winning horse.... but this is where they knew otherwise.

And that's exactly what they did more or less - and ended up making some $300m on more than 1 of them (I think Looksmart did very well for them).

I may have the family wrong, the stocks wrong and all that - but that was definitely the strategy.

And on days like today, there is equity on the cheap due to illiquidity largely. The banks will have a question to answer which is "Can the people running these concerns make a better go at it than us" - the answer will sometimnes be yes, sometimes no....

Thing remains, 3-4 businesses today with an upside of 30-40x ++ if they can survive illiquidity turmoil. If you put $1 into each of them for a total of $4, and one lives, that one will probably give you back $30-$40...

Its not my usual style of investing - neither in the booming up times nor the booming down times either... Im an old-hat value investor. But this time, Im going to try it out.

So.. Im putting my $1x into CNP, BNB, and Im yet to find a 3rd partner for this particular unusual style of "investing".