Insights

New Niche Play: Hamster Buttocks

  • Peter Lynch

The Wall Street Journal reported that a new craze is spreading in Japan: books featuring photographs of hamster buttocks. The article elaborates:

Two books devoted to images of hamsters’ posteriors have already sold nearly 40,000 copies combined in Japan, according to the publishers, with a third book set for release later this month. Fans of the craze have coined the term “hamuketsu,” which combines the English word “hamster” with “ketsu,” the Japanese word for buttocks.

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Three M&A Catalysts

  • Peter Lynch

Event-driven investors look for potential mispricings in the market before or after corporate events. One example is M&A activity. Within this strategy the most common objective is to identify companies that would be attractive as takeover targets. The reason being that a takeover bid is generally substantially greater than the current market price. So as an investor you would be interested in the forces driving M&A activity and the characteristics of a business most attractive to potential acquirers.

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An Unusual Threat to Cities

  • Peter Lynch

You may have already guessed it from the helpful illustration, but the unusual threat I am referring to is creative accounting. An opinion piece in the Wall Street Journal recently highlighted accounting practices that create a false sense of security. What I found most relevant to this website is the manner in which states and municipalities record revenue. This sounds terribly boring (I know… it’s why I drew a giant lizard), but it is pretty fascinating to see what local government will sell to stay afloat.

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Buy or Rent: An Elegant Solution

  • Peter Lynch

I am consistently impressed by the range of free tools websites are offering to help readers make informed decisions. The New York Times posted a LINK this morning for an online calculator that uses a series of simple inputs to determine the economics of buying vs. renting a home. The user interface is elegant (see photo above) and so inviting you may feel compelled to test it even if you’re already committed to a 30 year mortgage…

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Billion Dollar Entrepreneur

  • Peter Lynch

JPE.com may be the coolest private equity website I’ve seen. It has one page (excluding Contact), and just lists the professional accomplishments of the man behind the fund: Bradley S. Jacbos. Turns out he has founded or co-founded four companies, all of which became multi-billion dollar entities:

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