Robert Rubin’s philosophy on risk arb (students were asked to do substantial reading on Rubin prior to class), Graham-Newman’s arbitrage results over a long time, Buffett’s own results in the field. Graham’s framework on special situations from the appendix of the 3rd edition of Security Analysis, Walter Schloss on that appendix, and how my own career was deeply influenced by it.Risk arb defined, Buffett’s four questions on risk arb deal analysis (probability of deal going thru, time to consummation, chances of icing on the cake, and worst case scenario).Case on Arcata Corporation from the Buffett letters was discussed at length to illustrate the idea behind risk arb.Graham, Buffett, and Rubin suggested as role models for learning risk arb and the fermat/pascal way of probabilistic thinking.List of topics discussed in Tuesday’s class:
0 Comments
Leave a Reply. |