Surge Energy Inc (Alberta) T.SGY

Nuttal makes the same mistake as Warren Buffet bails to soon

[pennydredful]

A couple of years ago Buffet provided back up liquidity financing to Home Capital savings and loan mortgage lender . As part of the deal he got 19.99% of the shares at a discounted price of 10 per share when book value was about 25. Within 6 months the back up liquidity was replaced with conventional  financing. Shortly after that  the co. made a substantial bid for 30% of their shares
at 16 per share which Buffet accepted even  thought  this boosted the book value  to  30. Within in a year  the shares  rose  to about 43 as the company was reporting substantial profits  and book value was soaring.  So  while Buffet  made a nice short term profit , he left  alot more on the table than he made.

[zack50]

Seriously! Nuttall and Buffett make the mistake of bailing too soon... that's dreadful pennydredful. In the meantime, WB has a net worth of ~$100B and EN has a net worth, probably of several million and you make a pompous comment that reeks of A$$ininity. I'm gonna go out on a limb and say that Mr. Buffett most likely took his "nice short term profi", reinvested it and

[1970Craig]

Thought you were going to mention Suncor as Buffet has taken a position 2 times .    Imagine Nuttall seeing his name along side Buffet.     Compliant to Nuttal.  Making a profit is never a bad thing and there is more to the story.  Selling a stake in one business , isn't always about getting out , in Buffets case he didn't take his money and park it

[pennydredful]

Buffet has capable  people  working with him so he personally may not have made the Home Capital decision  . As well  there may have been an agreement  that  allowed  Home to buy back the shares  within a time  frame at a price that the Buffet  organization had to comply with. Such an agreement was never publicly disclosed and could have been an

[daniel004]

Hey Zack, Take is easy on ol' Penny. He or she must be very wise if they have a 280+ reputation on this BB.

[pennydredful]

Thanks for your generous comment.  Some  speak before they  think. Regretfully I  have done it myself   on occasion.

[1970Craig]

Had a friend named Zack.  I used to call him or say to him " HEY Zack attack ".  Lol.   It's important to be able to say things on this board that involve free flow thought.       Meaning ,  you might think twice and not post something that is outside the box or a interesting take , because someone uses harsh words , or threatens ignore ?   I