Received a strange letter in the mail today from TRC CAPITAL CORPORATION.
“TRC Capital Corporation is offering to purchase for cash up 1,500,000 shares of common stock of the CA, INC. at USD 88.50 net per share….”
The letter goes on rambling a bunch of legal and financial jargon that I am not interested in. I decided to google TRC Capital Corporation just to find out if they are affiliated to MasterCard in any way. Apparently TRC capital has been trying to get investors in other companies to give up their shares to them through “mini-tender” offers.
Some investors have been reported to give up their shares carelessly without even checking the market price. (Who would do that???)
MasterCard has since released a statement urging investors not to accept the offer. The offer of $88.50 is 4.5% less than the new high of $92.67 which MasterCard had reached on 25 February 2015.
I don’t really care about TRC Capital or what shenanigans they are up to…
I only know that if you want my MasterCard shares, you have to pry it off my cold, dead hands.
Yes that’s right. That’s how bullish I am on this stock, and that’s how much I love this stock.
The Overly-attached Shareholder
Perhaps my love for MasterCard shares is unwarranted and maybe even unsound of mind. After all, shouldn’t one remain analytical and emotionally-detached when picking stocks?
I find myself quite the opposite…
When I find businesses that execute so perfectly on a strategy that promises an exciting future, and I watch their financial statements churn out ever-increasing earnings, cash, assets…. my heart flutters. I get excited. I fall in love with the business. I liken the feeling of buying the shares of a good business akin to buying expensive art, or buying a Rolex watch, ( I haven’t bought the last 2 items before so I can only imagine it must feel like that.) I wonder if anyone else feels this way.
Being overly-attached can cause problems:
On one hand – it may cause me to be over bullish and over invest into stocks, ignoring the risks, brushing them away or even ignoring warnings. Just like how some guys get together with horrible, money-sucking girlfriends then find out they just can’t seem to dump them.
On the other hand – it allows me to commit totally to the stock, stick with it through up and downs, all the way till I grow old. Just like how a good marriage is supposed to be.
Only difference is, you can own many stocks but you can only have one wife.
There may be more pros though. With such a mindset, one will select stocks stringently, with a high criteria in mind and a plan for long-term commitment. Just like choosing a wife. Nobody marries someone whom they just met at a party straightaway. By being so picky, many mistakes in stock-picking may be reduced. And with a long-term mindset in place, one will also be wary or knowledgeable of the risks in place and not over commit too large an investment to it, or be mentally-prepared for any shockers that may come.
The Bf Gf Portfolio – MasterCard Inc
Yes, MasterCard is part of my portfolio. Unlike FireEye, I feel comfortable recommending this stock to anybody provided you can hold it for 10 years. I will do an analysis of MasterCard soon!
And yes! I have not forgotten about the ‘secret’ stock which I have recently added to my portfolio. I will do an analysis on that too!
That means I owe all you readers 2 stock analysis.
I gave a presentation to my stock investor gang on MasterCard Inc before. You have to present a stock idea to attain ‘membership’ privileges to the gang. I was totally unprepared for my presentation and did a horrible job. I blame it on my overly-simplistic investment thesis: Do you think the world is moving toward cashless payment? Period.
They were nice enough to still welcome me into the gang.
Nevertheless, I feel I should come up with a better presentation for this stock which I love so dearly.
So in the meantime, corporate sharks like TRC Corporation who come to me with offers to buy off my MasterCard shares can TALK TO THE HAND.
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