How to Construct a Winning Investment Thesis by John Mihaljevic
Check out this article share on Beyond Proxy and the commentary from John:
"The following is my full interview with Glenn Surowiec from April 2012. I have to admit I found Glenn’s investment thesis on both Overstock and Bank of America compelling but somehow failed to act.
Maybe I suffered from the same shortsightedness that keeps many investors from seizing an investment opportunity. If I recall correctly, I passed on Overstock because I thought they would have a tough time competing against Amazon.com and because I was not sure the Overstock brand lent itself to gift-related categories in which the potential buyer did not want to gift someone an “overstock” item. The company’s roller-coaster history with short sellers may also have played a role in my decision, although I have always held Patrick Byrne in the highest regard. Looking back, I committed one of the rookie mistakes of investing: I let prejudice and some fundamental concerns detract from the actual facts, which included a rapidly improving financial profile. I also failed to calibrate my fundamental assessment versus Overstock’s extremely low valuation. What would you have done at the time?"