Dear Mr. Buffett: What an Investor Learns 1,269 Miles From Wall Street
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value assumptions
Graham, Benjamin (continued)
value/growth stocks, distinction (absence)
Graham, Katherine
Grant, Audrey
Grant, Geoff
loss
Grantham, Jeremy (newsletter)
Greenspan, Alan
focus
Griffin, Kenneth C.
Gross,William
Fed largesse, limit
Gross exposure
Gross national debt level,Washington credit
Growth/value managers, Buffett opinion
Gutfreund, John (Buffett/Munger rescue)
H
Hagopian, Kip
Halliburton, overcharges
Hamilton, Iain
Hasselhoff, David
Hawala. See also Collateralized debt obligation
Heckinger, Richard
Hedge fund managers
after-the-fact anecdote
fast money, search
financial journalists, relationship
investment
origination
pitch rejection
S&P500 performance, contrast
value creation
Hedge funds
alpha, making
asset class creation
averages, outperformance
Buffett challenge
business size
collateral, usage
employees, payment
index
investing capabilities
investment bank bailout, impact
investment strategy
leverage/luck, bet
location
misrepresentations (Buffett/Munger)
number, increase
offshore location
outcomes, uncertainty
overleveraging
proprietary model
strategies, overcrowding (impact)
structured products, usage
wisdom
Hedges, total return swaps (usage)
Hedgie heroes
Hennessee, Lee
Highly rated products, Graham advocacy
Hilder, David
Historical data, statistical analyses (performing)
Hockenberry, John
Hoffman, Dustin
Hold-to-maturity portfolios
Home equity loans,Wells Fargo portfolio
Homeowner equity (refinance encouragement), no-cost loans (usage)
Hudson,Tom
Hudson United, mortgage-backed CDO sale (attempt)
Hufschmid, Hans
Hughes, Howard
I
Immelt, Jeffrey (Sarbanes-Oxley complaints)
Implode-o-Meter, usage
Independent National Mortgage (IndyMac), Countrywide setup
Indirect mortgage lenders
Infiniti Capital, fund of funds
Influence (Cialdini)
Innumeracy (Paulos)
Insurance companies, options (relationship)
Intelligent Investor,The (Graham)
Interest-only (IO) mortgage loans
Interest rates, low level (Federal Reserve impact)
International Monetary Fund (IMF), losses (estimate)
International Swaps and Derivatives Association (ISDA), credit default swap documents (modification)
Investment
banking products, opacity
probability
Investment banks
assets, market prices display (avoidance)
losses
prime brokers, hedge fund impact
structured product prices, challenge
trades
underwriters, due diligence (responsibility)
unsold CDOs
write-downs
Investors
capital, manager self-interest (impact)
safety, protection
Iran
Mohammed descendants
tensions
Iraq Study Group Report,The
Iraq War, dollar cost
Irrational hype
Israel
Lebanon, war
tensions
Israel III, Samuel (guilty charge)
J
Jain, Ajit
Jefferson,Thomas
James, LeBron
Jenkins, Jr., Holman W.
Jesus
Jones, A.W.
Jones, Paul Tudor (success)
JPMorgan Chase
Junk debt rating, rating agency problems
Junk economics
JWM Partners LLC, initiation
K
Kahneman, Daniel
Kaplanis, Costas/Evi
Kennedy,Ted (Edward Moore)
Kernen, Joe
Keynes, John Maynard
Khameini, Ali
Knight, Michael
Khomeini, Ruhollah
Khodorkovsky, Mikhail (imprisonment)
Koch, Ed
Kotok, David
Kozlowski, Dennis L./Karen
Kravis, Henry
Kresa, Ken
Krowne, Aaron
Kurdistan Workers Party (PKK), insurgency
L
Ladreit de Lacharriere, Marc
Lacker, Jeffrey M.
Lane, Jeffrey
Laffer, Arthur
Lampert, Edward
Lawrence.H.
Lee, Jr., James
Lehman Brothers Holding Inc.
accounting, Einhorn questions
assistance, Fed refusal
failure, Fed relationship
financial report, examination
losses, announcement
money movement
Leverage
averages, problems
usage
Leveraged bets, popularity
Leveraged Investment Group (LIG), conflicts of interest
Levitt, Arthur (Consumer Deception Award)
Levy, Harlan
Lewis, Ken
Lewis, Michael
Liar’s Poker (Lewis)
training class
Lie, Eric
Lipper Convertibles Investment Partnership, lawsuit
Loans
early post-signing defaults
payments, servicer collection/ recordation
problems, gravity
Lockhart, James B.
problems
Long position, short position, historical relationships
Long-Term Capital Management (LTCM)
bailout bid (Goldman Sachs/AIG)
Buffett bid, refusal
dollar investment
excuse
fundraising
performance, Berkshire Hathaway performance (contrast)
rejected bid (Buffett)
Lowenstein, Roger
Low-fee index funds, purchase (ability)
M
Madigan, Lisa (lawsuit)
Major, John
Mandelbrot, Benoit
fractal finance
gray swan
Manufactured housing industry, consumer financing practices
Marcus, Magen
Margin call
Marin, Richard
blog writing
Marino, Daniel (guilty charge)
Markowitz, Harry
Mark-to-management estimates
Mark-to-market accounting, value
Mark-to-model, usage
Mark-to-myth, usage
Marquez, James
Martin, Judith
Martin, Steve
MBIA
capital, raising
securities
McLean, Bethany
McNamara, Robert Strange
McVeigh,Timothy
Mead, Scott
Meissner,W.
Melcher, Jim
CNBC appearance
Merger and acquisition (M&A) opportunities
Meriwether, John
Merrill Lynch
collateral, seizure
O’Neal relationship
Merton, Robert
Miller, Bill
Mindich, Eric (Eton Park Capital Management)
Minority homeownership
bad lending, excuse
increase (Bush announcement)
Mitchell, Edson
Moffett, David
Mohammed, Islam founder
Molinaro, Sam (CNBC appearance)
Money
definition
government, impact
types
Money market funds, ratings reliance
Money market securities, pension fund investments
Montag,Tom,
Monte Carlo models, investment bank usage
Monte Carlo simulation, usage
Moody’s Corporation (rating agency)
Berkshire Hathaway shares, ownership
problems
rating awards
Morali,Veronique
Morgan Stanley
Mortgage borrowers (rights), defense (state inability)
Mortgage broker, objectivity
Mortgage companies, fees (problems)
Mortgage lenders
fees, siphoning
loans, takebacks (obligation)
Mortgage lending crisis, swindle
Mortgage-related assets, Fed acceptance
Mortgages
direct/indirect taxpayer costs
losses, increase
meltdown
modification, preference
overdue, timing
re-aging
Moses, Jennifer
Mozer, Paul
Mozilo, Angelo
lawsuit
Mozilo, Eric
Mr. Market, manic depressiveness
Mullins, David
Munger, Charlie
earnings
Gen Re value, realization
Gutfreund rescue
intrinsic value, increase
leverage, avoidance
stock options, absence
tax efficient average annual return
Municipal bonds, bond insurer guarantees
Murphy, Tom
Mussaddiq Mohammad
Mutually assured destruction (MAD)
N
Naked Shorts (Newton)
National Recognized Statistical Rating Organizations (NRSRO) designation
revocation
Negative amortizing ARM, problems
New Century Capital Corp.
Bear Stearns, relationship
credit lines, disappearance
loans
shares, decline
New Century Financial Corporation, fraud/bankruptcy
Newton, Greg
Ng, Serena
NINA program
NINJA loan
No-cost loan, nonexistence
Nonbank investment banks, protection
Nonbank primary dealers, protection
Non-Fannie Mae/Freddie Mac securitizations, purchase
No-Ratio program
Norris, Floyd
O
Oakwood Homes
Berkshire Hathaway loss
Credit Suisse lawsuits
Off balance sheet vehicles, hidden risks
Office of Federal Housing Enterprise Oversight (OFHEO)
Office of Thrift Supervision (OTS), impact
O’Leary, Kevin
Old Lane Partners
Olick, Diana
O’Neal, Stan
problems
Wall Street Journal opinion piece
O’Neill, Paul
Onaran,Yalman
Open Source, usage
Operation Malicious Mortgage, mortgage fraud cases
Option ARMs
negative amortization, allowance
product, toxicity
Options
holders, backdating advantage
pricing model, corporation usage
value manipulation
Othmer, Donald/Mildred
Outcomes, discovery
Ownit Mortgage Solutions
arms-length transaction
implosion
Merrill Lynch (part-owner)
P
Pahlavi, Reza
Pallotta, James
Pandit,Vikram
Parmalat, scandal
Parseghian, Greg
Partridge-Hicks, Stephen
Patel, Beejal
Patton, George S.
Paulos, John Allen
Paulson, Jr., Henry Merrit
FNMA/FHLMC purchase request
shares purchase, authority
Paulson, John
Bear Stearns credit default swaps statement
collateral prediction
U.S. housing market bet
Paulson Plan
Pay option ARM, problems
Peloton Partners
ABS fund
credit derivatives, usage
failure
demise
Eurohedge, fixed income fund of the year award
hedge fund, cessation
leverage problems
loans, delinquencies
Multi-strategy fund
contribution
pledged assets, balance
problems
Pension funds, ratings reliance
Pershing Square Foundation, personal gains donation
Personal History (Graham)
Personal returns, health
Phallic narcissist (defined)
Philadelphia Contributorship, Franklin initiation
Pickens,T. Boone
Piggyback loans, principal losses
Pimco Total Return Fund, default guarantees (sale)
Planned Parenthood, Buffett support
Plosser, Charles I.
Pluralistic ignorance
Plus Funds
Ponzi scheme
Poole,William (St. Louis Fed Reserve) statement
Poor Charlie’s Almanack (Munger)
Portfolio insurance
catastrophe (1987)
dynamic hedging
Predatory loans, predatory securitization
Premium money, usage
Prime brokers, hedge funds services
Prime loans, default rate
Probabilities, human assessment (problem)
Protége Partners LLC hedge funds, Buffett challenge
Proxmire,William
Prudent lending
Publicly traded shares, sale
Pulliam, Susan
Q
Quantitative hedge fund (quant fund) models
claims
usage
Quick, Becky
Quintanilla, Carl
R
Random events, explanation
Rapid dominance, strategy
Rappa, Ed
Raptor Global Fund management
Rating agencies
financial astrology
junk science, practice
market foregiveness
methodology, problems
models, risk (moral hazard)
problems
reliance, absence
replacement, problem
Reagan, Ronald (Buffett similarity)
Recession, definition
Recovery rate, guess
Redlining, illegality
Regulators, ineffectiveness
Reich, John
Reilly, Dave
Residential mortgage-backed securities (RMBSs)
portfolio, loan purchases
portfolio value, loss
risk levels
tranches, usage
ResMae Mortgage Corporation, bankruptcy
Revenue enhancement, leverage (usage)
Reverse redlining, illegality
Ricci, Matteo (memory palace)
Ricciardi, Chris
Rigas, John/Timothy (fraud/ conspiracy)
Risk, underwriting (profit)
Risk-free return, lockin
Risk-neutral fully-hedged position
“Rocking-Horse Winner,The” (Lawrence)
Rogers, James B.
wealth, perspective
Rose, Charlie
Rosenberg, Jeffrey
Rubinstein, David
Lee, Jr., warning
Russell, Bertrand
R.W. Pressprich & Co.
S
Salomon Brothers, preferred stock
Sandford C. Bernstein, Inc. (mutual fund performance results)
Sarbanes-Oxley, business impact
Savage, Sam
Scalia, Antonin
Scholes, Myron
Schultz, George P.
Schumer, Charles E.
Schwartz, Alan
CNBC interview
Schwartzenegger, Arnold
Securities, sale (backing)
Securities Act of 1933, Regulation D,
Securities and Exchange Commission (SEC)
Securitization
markets, fraud (potential)
practices, deception
SFAS 123R, FASB adoption
Shareholders, executive duty (breach)
Sheehan, John/Peggy
Shenn, Jody
Simonides, earthquake survivor
Simons, Jim (earnings)
Sinha, Gyan
Smartest Guys in the Room,The (McLean/Elkind)
Society of Jesus, founding
Soft dollars, usage
Soros, George
South American debt crisis (1980s)
Spanish Prisoner, The
Spector,Warren
Bear Stearns stock, sale
job loss
Speculator, Graham definition
Spitzer, Eliot
OCC attack
scandal
Springfield Finance Control Board, claims
St. Ignatius, psychobiography
St. Louis Federal Reserve Bank report
Stagflation
Stallone, Sylvester
Standard & Poor’s (rating agency)
CPDO ratings
ratings, defense
Stated income, stated assets (SISA) program
Statistics
Stempel, Jonathan
Stewart, Jon
Stock
asset value, trading
purchase, Graham advocacy
Stock index fund portfolio, investment
Stockman, David
Stock market technology bubble, collapse
Stock options (call options)
backdaters, compensation
backdating, data patterns
benign intent
corporation marking
employee option exercise
moral hazard
strike price
Strategos Capital Management default
Structured finance ratings, problems
Structured financial products, risk (misunderstanding)
Structured investment vehicles (SIVs)
collateral, downgrades
Subprime-backed investments, shorting
Subprime foreclosures, moratorium/ mortgage restructurings (advocacy)
Subprime lenders, exposures (writedowns)
Subprime loans, default rate
Subordination
Subprime mortgage loans, outstanding loans
Subprime-related losses, Bloomberg tracking
Subprime residential home equity loan, delinquencies/downgrading
Subprime sector, recovery rates (overestimation)