Using Veritas to Construct the "Per…

29-04-2017 Hits:84654 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:79117 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:78962 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:83452 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:80015 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:82324 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:53298 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:81330 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:81328 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:81142 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:86992 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:85008 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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About 8 months ago, I released research (as part of the Asset Securitiziation Crisis series) as a summary overview of Wells Fargo (Doo-Doo bank drill down, part 1 - Wells Fargo) and the forensic analysis of the same, Doo Doo 32 Bank Drill Down 1.5: The Forensic Analysis of Wells Fargo. For those that don't know, Warren Buffet is the largest shareholder of Wells Fargo. When my analysts and I came up with the short list that included Wells, the first thing to pop into my head was actually included in the introductory post. I will excerpt it here:

"Well, the first bank on the drill down list will also be 2nd of the banks that I will deliver a forensic analysis on (the first was PNC Bank). That bank is,,, (drum roll in the backgroud, crescendo.... I know some of you hate it when I do this........) Wells Fargo! I can hear a few of you naysayers cackling behind your computer screens as I type this. Wells Fargo is a big name brand bank (cackle, cackle)! Wells Fargo has Warren Buffet as its largest investor (cackle, cackle)! Wells Fargo this and that and blah, blah and (cackle, cackle).... All I can say is, beware of name brands (I actually felt compelled to address this in earlier posts). I have made more than a couple of dollars benefiting from name brand hubris and smaller minded investors (this easily includes big institutions as well as little retail investors) who would rather be told what to do than read a balance sheet! Time will tell if I am right or not on Wells Fargo, just be forewarned - several of the banks on teh Doo-Doo 32 list have already taken a trip to the confessional! The score card for the credit crisis to date, Reggie Middleton - 10, big name brand investors - 0 (not to toot my own horn, I'm sort of a modest guy and I know I have a big mistake/loss coming soon, it just isn't going to be this one).

 I actually have a lot of respect for Buffet, though. Hell of a fundamental investor and cash flow king, and charming public persona as well as being modest (at least he's got me beat). My appreciation differs from that of many, though. His investment track record is quite impressive for it stands the test of time as consistent. As a smaller, unknown investor, he  was the most impressive, but now he is an icon and his very words and even a scent of investment from him actually moves markets. Even though he has a much larger capital base to work from (which makes it harder to generate large proportionate returns), his influence can be confused for investment acumen. All in all, he is one to be admired, but the investment results stemming from alpha have to be seperated from the ability to manipulate and move the market (unless that actual ability can be defined as alpha - topic for another day). We all make mistakes though, and Wells Fargo is a mistake waiting to happen for anyone invested in it, including and particularly Mr. Buffet due to the size of his investment. Let's walk through this company as I see it. Of course, since Wells Fargo failed to cooperate with me in releasing their numbers, I used statistical data to back into their probable delinquincies where they weren't directly available from their public filings."

 

Due to Mr. Buffet's heavy investment in industrial, manufacturing, insurance and banking stocks, he has had a very rough two years. The recent deterioration of stocks in the Berkshire portfolio happen to include a $4.5 billion drop in the value of its Well Fargo holdings since December 1. Wells has lost half of its value in under two months. This translates into a 2x to 4x on my bearish Wells Fargo positions.

Name brands that I have trounced and made significant money off of in this crisis do not end with Mr. Buffett (see BoomBustBlog Research Performance for 2008). There is also Wibur Ross (Assured Guaranty ), Citadel/Ken Griffin (homebuilders/Beazer), Warren Buffet (Wells Fargo), Joseph Lewis from the UK (Bear Stearns), Legg Mason and Citibank (the homebuilders), UBS and Warburg Pincus (MBIA and Ambac), Carl Icahn (WCI Communities), nearly all the ex-bulge bracket banks (see Blog vs. Broker, whom do you trust!), and the list goes on for some bit. This is not to say that I am so smart. It is stated to illustrate that people are people, and we are all wrong sometimes. As a matter of fact, I have shown that many name brands have been consistently wrong for almost two years straight. My track record for the last 8 years easily bests the name brands that I just mentioned, yet no one would have ever heard of me if I didn't write in this blog. Let this be a lesson to you - do not follow an investor or any personality/pundit simply because they have a branded name. Do your own homework/legwork and create your own brand. We are all human, and chances are the best investors are most likely individuals that you have never heard of and probably never will hear of.

See my past name brand commentary:

Are you hooked on name brands?

(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...0% - Miami Condos in 2007, please tell me someone saw this coming besides me!!! Citadel Capital on Beazer Homes, down over 80% (they doubled up as it went down) Warburg Pincus on MBIA...
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More on Name Brands
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)

...as a giant cheat sheet, so to say. Doing your own homework is quite important, for although quoting name brands makes for profitable media fodder, it doesn't do well for investors - contrar...
Wednesday, 15 October 2008

2. As I was harping on relying on Name Brands...
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
I was just warning readers to beware of believing the hype behind financial name brands when I came across the following WSJ.com article. If you have followed this blog regularly, you would have be
Monday, 03 March 2008

3. BoomBustBlog Research Performance for 2008
(Reggie Middleton's Boom Bust Blog/MyBlog)
..., let's walk through my results for the year in detail. I'll start by comparing my results to that of the big name brands, just to illustrate where the real performance is to be found. For those in ...
Friday, 09 January 2009

  The bankruptcies that I predicted are here
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)

When I released the various monoline analyses, I assured: my readers that we would start getting a wave of bankrutpcies as a result of the lax underwriting of the leveraged loan markets. I also made
Friday, 11 April 2008

6. I've told you about following those "name brands"
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...that CRE will not be that bad this time around. I don't see why so many are walking around with blinders on! Name brands have put a hurtin' on banks repetitively, yet no one seems to learn their le...
Friday, 09 May 2008

7. In the "Worst is behind us!" world of financial news
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
Tuesday, 03 June 2008

8. Investment performance, Name Brands & "Should a blog charge 2&20?"
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...oing lately, but before we do that I would like all to revisit a post I made in February... "Are you hooked on name brands?"  It was quite true then and actually quite prescient now as we look ba...
Tuesday, 30 September 2008

9. Blogonomics 101: some of us new media journalists might know what we're doing...
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...e to thinking that either the populace does not expect the acumen of those that blog, or they overestimate the name brands whose moniker resides beside the term hedge fund. On that note, here is an ar...
Tuesday, 07 October 2008

10. Reggie Middleton on James Cramer: Marked to Market!!
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
James Cramer: marked to market! This is most likely the final installment in my "Name Brands aren't all they're cracked up to be" series. This string of articles has seen me compare my (a lowly
Tuesday, 28 October 2008

11. The name brand contrarian plays have bore sweet fruit
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...e brand banks, I think a recap is in order. I have taken strong bearish positions on a few of the most revered name brands, to the dismay of people who should really know better than to doubt my inves...
Monday, 10 November 2008

A Direct Challenge to the Mainstream Media (the MSM)
(Reggie Middleton's Boom Bust Blog/MyBlog)

... "Who is this guy?" Well, you probably don't know who I am because the press routinely goes to "name brands", without regard for track record, hence routinely tends to circulate op...
Saturday, 17 January 2009

15. The 2nd inning of the unwind begins, and I contemplate my strategy
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
...ommy (yes, that's what I called her) used to tell me that patience is a virtue. I noticed that a lot of name brands are jumping in to buy muni, mortgage, and real assets now, but I feel it is m...
Thursday, 06 March 2008

 Comparing the BoomBustBlog to the Name Brands, again
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)

The media, investors (both retail and institutional) and arm chair economists tend to look at the world one month at a time. The world is billions of years old, a monthly outlook is thinking small.
Friday, 03 October 2008

21. Blog vs. Broker, whom do you trust!
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
The Name Brand - that bastion of marketing that the finance and investment industries have come to rely on to convince those who should no better to do things that they shouldn't -has come under att
Friday, 24 October 2008