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Another Investing Lesson from Broadway Dan

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March 16, 2007 – Comments (2)

Sorry, TMF El Capistrano, I mean Castrato, I mean CAPITANO will always be Broadway Dan to me.

 

It occurred to me as I watched his hilarious TiVo video pitch that I think TiVo is a really crummy stock. Dan loves it. I hate it. I've even written some pretty nasty things about the company, both in Caps, and for our main page.

 

(Investing lesson alert)

 

To my best recollection, though Dan loves TiVo, he has never once accused me of:

a) secretly being short the stock

b) pushing the stock down so I could buy it cheap

c) pushing it down so my short-side hedge fund buddies could get rich

d) pushing it down so my hedge-fund buddies could get shares cheap

e) pushing it down so my short-side family members could get rich

d) having a personal quarrel with someone in the company

e) having a "chubby" for the company

 

Nope. Dan has done none of this. It's not because he spends his free time in some West Hollywood opium den, too numb to read the yahoo ticker feed. It's because (shocker on the way) he realizes that the stock market is a market of stocks. He knows that a market of stocks is a market of opinions. It's a market of ideas. It's a place where you ignore contrary opinion to your own peril.

It's also because he doesn't have his ego attached to his stocks. He knows that stocks can be fun, and stocks can be enriching. But he knows that Dan <> stocks and stocks <> Dan.

It's because he is, in short, a Fool.

 

Or maybe it's because he knows I look better in tights.

 

Sj

 

2 Comments – Post Your Own

#1) On March 16, 2007 at 3:17 PM, Greshm (96.38) wrote:

I'm in Calif.  Address to that W. Hollywood location please...

Grazie!

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#2) On March 16, 2007 at 3:59 PM, BroadwayDan (97.23) wrote:

Hey Bent,

Thanks for the kind words.  And no doubt I have to laugh at those who attack your motives for not liking their beloved stocks.  

You're really going to get a kick out of this doozie - I gotta confess something.  I think I'm leaning more your way on Tivo.  I may have more heart than head in that one.

As I develop my investing style, I find myself turning more and more away from stocks like Tivo.  I still think they have a decent shot at relevance and success, but the point I'm coming around to (oh no, does this make me more of a value guy???!) is that I really like NOT losing money, and really like profits and little debt.

I'm gonna go blogwild on this one day, but I once lost a FORTUNE (by my standards) investing in the worst business in the world.  That business, lead by a corrupt CEO, always promised:

Huge future glory for payment today.

Tons of debt - because they were building a bright tomorrow!  So who cared?

Little cash on the balance sheet.

Virtually NO competitive advantage. 

Anyway, I hate to provoke a love fest or goofy-arsed mutual appreciation society, but your mega-skepticism has me convinced that it is as critical to not lose money as it is to make it and unfortunately, I'm not positive Tivo's assured of anything.   I do love the product and company and could sleep okay with the stock - which I was lucky enough to make some money on and get out.  But I think you're right - years and years without steady profits is very problematic.

Lastly, in defense of the video, it seemed thematically correct to have a little Fool chased by a thug (the big bad cable and satellite companies) and I do think it is possible that the patent portfolio and the lawsuit and a buyout are all possible future catalysts.

Best,

BD

 

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