Quarterhill Inc T.QTRH

Looking at the big picture..

[Asymmetry]

Hi Everyone. This is my first post. The reason I finally decided to post is that the group on here is making an intelligent contribution and I thought I would add my views and support the group effort. First of all to be clear I am long QTRH and have been for many years, so I have "skin in the game". 

The author Nassim Taleb, in a great book titled  "Antifragile" talks about "asymmetries". By the way the author has a PhD I think in finance and was a very successful options trader. This is where QTRH comes in. As many of you have posted, the company has a substantial cash position, which is growing, and will be substantially enhanced when large litigations are concluded.  In my view these are on the whole issues of timing not likelihood. Moreover their clear mandate to expand the business into other technology based businesses is surely a major driver. 

Basically asymmetries are large non-linear benefits or consequences that far outweigh the likelihood or cost of the opposite happening. So they can be both positive or negative. Investing in QTRH is as many of you have suggested in other ways a positive asymmetric investing opportunity, meaning QTRH has the potential for significant non-linear growth with little downside risk. Its all about the disproportionality of potential benefit relative to the downside. Assymetries define how we largely make decisions about everything, including investing, which is why perhaps the book Anitfragile is the best book about investing that was never written specifically about investing.

One other thought. A stock can do nothing for years like QTRH has done, and all the major movement can happen virtually overnight. 

Thanks for reading this.

[cabbieJBJ]

Welcome to the discussion!

[cabbieJBJ]

Welcome to the discussion!

[Justhalffull]

YAWN

[v_guerriero]

This has been my thesis all along.  QTRH is the best ASSYMETRIC stock on the TSX.  This enables huge risk adjusted returns.  I can quantify Max 0.50 of downside, but $15-$20 of total upside.  Even if I am wrong a lot about the upside, I can still make 300% instead of 1,000%.  This is the ultimate in investing.  The downside essentially is if the Board let's

[Asymmetry]

That is a very interesting analysis. Excellent work. The good news is that asymmetries don’t need to happen exactly as hoped or expected. As Buffett has been credited with saying, better to be generally right than precisely wrong. Asymmetries give us a lot of latitude, so that even if not everything falls into place things still work out. This is one of the basic tenets of antifragility as Nassim

[SixMileLake777]

Nassim Taleb also wrote the Black Swan which I really enjoyed. I am always watching for the Black Swan events. But you never know when they are coming skid

[SixMileLake777]

My feeling has been Wilan was a good stock to hold in case of some black swan event

[Lazaros]

And as mentioned, Taleb also wrote "Skin in the Game" which did a brilliant job illustrating why it is important to reap the rewards of your decisions, but also suffer the consequences. Too many executives and politicians don't actually face the consequences of their actions or decisions. We see how many posters here have a hard time respecting a management team that doesn't own

[Asymmetry]

I agree Lazaros and SixMile. Each of those books should be read by any student of investing. I defintely agree that the concepts and distinctions in those books, especially in Antifragile makes investing in Qaurterhill more compelling. 

[redcoats]

I concur, Asymmetry. Little downsides, little upsides, but very little chance for a big downside. However, huge potential for big upsides, as well as being very undervalued now, and almost always. Which is why I keep buying and buying. LOL