You know that you're a value investor at heart when...
You know that you're a value and special situation investor at heart when...you take your kids to an arcade on your day off and you spend the entire time looking for ways to beat the system and get as many tickets as possible for as few tokens as possible. Who cares if the game is fun :) we can get ten times the tickets that we can on other games.
I had my two young sons walking around that coin pushing game that you find on the boardwalk at the shore looking for machines that were only one more good shot away (instead of 5 or 6) from starting the bonus wheel that let's you spin for a chance to win up to 500 tickets.
We found another game where you had to shoot harpoons at virtual fish. The more pounds of virtual fish you shoot the more tickets you get. My oldest son and I found that we could team up to shoot the massive sharks that were surrounded by guards to get the most possible tickets. I took out the screening fish and he would have a clean shot at the shark. They definitely didn't expect people to team up on this one. For four tokens we could consistently get 5 sharks every round for a cool 300 tickets versus the 10 or so that one would get on a normal turn.
Then of course there's one of my favorites, "Deal or No Deal". Where we were calculating the odds that we would beat the bankers' offer. The easiest one to calculate came when we only had two cases left. One that contained 500 tickets and the other that contained 3. Now if you round that off the ideal offer from the banker is 252 tickets, but I told my sons going into it that we're taking anything over 250. That must be my slightly conservative nature kicking in. Well, the banker offered 251. That's a much better offer than some of the lowball ones that the mathine tried earlier. We took it and our case contained...3. Yes! We made the right move.
I'm proud to say that we dominated the arcade today. We have lots of cheap, overpriced trinkets to prove it. Real world application of value investing and special situation investing at its finest ;).
I hope that everyone else is enjoying their holiday weekends, too.