About

Money McBags is the preeminent financial humorist and money maker in the world.  While known for his ability to find and invest in undervalued equities, Mr. McBags is also a world class dick joke teller, an aficionado of lovely ladies, and avid reader of books without pictures in them.

With buyside experience, a CFA charter, a degree in economics from a top ten university and an MBA in finance from a top 3 business school, Mr. McBags is here not only to help you make smart investment decisions, but also to make investing fun.

** Big disclaimer:  Mr. McBags is not currently associated with any fund (if he were he wouldn’t be giving stock picks), so all of the ideas on this blog are his and his alone.  Laugh at the jokes, ogle the pics, and enjoy the research/opinions, but as always, do your own work.

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  • #1 written by nzsvz9
    about 7 years ago

    So, Monsieur McBags (alternately asked might be Viceroy Valise, but whatever),

    Just how do you claim to call your blog “When Genius Prevailed” – is it to counter the much read and controversial “When Genius Failed”? What’s in a name – and don’t tell me “Rose” was taken, or “Rosebud” for that matter.

    Please advance the story behind the name, of the person, who chose the name, which seems to relate to the story I refered to earlier.

    Known simply as blog-reader nzsvz9

  • #2 written by nzsvz9
    about 7 years ago

    So, Senor McSuitcase, or Count McCarryon, or Lord McLuggage … if you’d prefer:

    What is your story (other than the brief about section – which would look better for investors that the latest 10K filiing for KIRK right now) — and how did you choose your name.

    Known as the question-guy in the about section, or just nzsvz9

  • #3 written by Money McBags
    about 7 years ago

    nzsvz9,

    The story is what it is. Money McBags wishes it were more interesting and involved intrigue, adventure, and plenty of Sofia Vergara, but alas, there is none of that.

    Money McBags is simply a classically trained analyst schooled in the quaint and oh so simple minded efficient market hypothesis, the farce that is the DCF model (and it is a farce not just because results are dominated by the ridiculous g and r you pull out of your ass for the terminal value calculation, but because estimates you make for 3 to 5 years out are less likely to be realistic than any of Michael Jackson’s marriages), and all kinds of pareto efficient Nash equilibriums which by the way, “don’t work in the real world” (which was the favorite phrase of every economics professor Money McBags was lucky enough to pay hundreds of thousands of dollars to learn from, as opposed to spending that money on English professors who could have helped him figure out how to end this sentence without a preposition).

    Money McBags was part of the buyside for several years but is now sharing that analysis and rigor with all of his readers while adding the dick jokes as the icing on the cake (or the M in the ATM). That said, if the sellside had balls they would take Money McBags’ product and actually be able to sell differentiated research as opposed to working for trades (and Money McBags is willing to explore this with any forward thinking shop out there). Or someone on the buyside could lure Money McBags back in to the game for the right price.

    As for the name, Money McBags doesn’t know what to tell you. You’d have to ask his parents as to what they were thinking, though the clairvoyance to give him the name Money and have him go on to conquer the world of finance was quite prescient. Of course given their foresight, he wishes they would have named him Giantcock McBags instead.

    Hope that helps.

    And as for KIRK, why a company that is making money trades at ~3x EBIDTA is beyond Money McBags, yet when momo goes, it gogos. As long as they are not completely fabricating their business and the story, they should be fine longterm.

  • #4 written by nzsvz9
    about 7 years ago

    Sir McSamsonite,

    Thanks for the background on the person behind the curtain. And, since this is an “about” section, perhaps you’d like to comment on the other question in the first question in the about section to which I quote:

    “Just how do you claim to call your blog “When Genius Prevailed” – is it to counter the much read and controversial “When Genius Failed”? What’s in a name – and don’t tell me “Rose” was taken, or “Rosebud” for that matter.”

    Known as nzsvz9 just lurking “about” and lamenting his purchase of KIRK

  • #5 written by nzsvz9
    about 7 years ago

    And the name means …

    • #6 written by Money McBags
      about 7 years ago

      nzsvz9,

      The name for the award winning When Genius Prevailed is an homage to both bad investing and bad business writing.

      Money McBags spent several years on the buy side, hobnobbed with the supposed “best and the brightest” (oh the stories he could tell from the bowels of another GS Investor Conference at the Waldorf Astoria where the bow ties and the hubris blended together like summer days or photoshopped celebrity heads on bikini clad bodies), and saw how the sausage is made on the Street. As Money McBags was one of those sausage makers (insert any bad porn pun you want), he realized that the whole market is full of shit and the entire study of Economics is a bigger fraud than emails from Nigerian princes and strippers telling you they are dancing to put themselves through college (unless they say they are attending STD State University, home of the Fighting Yeast Infections). And yes, Money McBags has an undergraduate degree in economics and MBA in finance, so he just took a dump on >$200k + opportunity costs but he has to call it like he sees it (and if he saw this, he would call it delightful).

      The point is, after being around all of these great investors, Money McBags realized that winning in the market is 99.999% luck for retail investors as they suffer from massive asymmetric information (no matter what Mr. Sarbanes or his butt buddy Mr. Oxley say) and the hedge funds win not because of any great analysis or insight, but because they are more incestuous than Oedipus if his mom had looked like Stormy Daniels.

      Basically all of the large funds (and now the HFTs) control the market by getting in early on IPOs, getting the best deal flow and access, and getting away with manipulating the market as they see fit (and remember HFTs now make up >50% of the market volume). That said, look at the returns of big FUNDAMENTAL hedge funds (quant shops be damned) and you will see very little consistent success because it’s all a fucking house of cards where even the dealer gets fucked, no matter how smart one bullshits to be (like the wonderful Mr. Meriwether who is now raising money for his 3rd fund after nearly blowing up the world with his first one and being down >40% with his second one, proving that all that matters in life is who you know and if Michael Lewis writes about you).

      But of course, we can’t forget all of the bad business writing where the sell side puts out the same cookie cutter irrelevant, mindless, useless drivel everyday that contains fewer original thoughts than xereoxed copy of a Kaavya Viswanathan novel. But it’s not just the sell side, it’s the awful books like Mr. Lowenstein’s When Genius Failed which are as stylistic as Bea Arthur’s vagina and erroneously prop up the people on Wall Street as if they are conquering heroes with genius unmatched by anyone outside of the guy who thought up the NFL Red Zone channel (because really, that is just fucking brilliant).

      When Money McBags was in business school, his classmates treated books like When Genius Failed and Liar’s Poker as if they were Hustler magazines featuring threesomes with the likes of Sarah Underwood, Olivia Munn, and one of the Bernaola sisters by likely keeping those books under their pillows and furiously masturbating to them when they woke up in the middle of the night from their Securities Analysis induced sleep. The way any of the dickbags in those books were fawned over by Money McBags’ classmates would have made you think those dickbags cured cancer (and not any cancer, but ass cancer), solved P vs. NP, or figured out how to get a money shot in to lesbian porn when instead all those dickbags did was hit a few buttons on their computer, close their eyes, and hope things worked out for the best.

      By definition, someone has to beat the market and there will always be 2 standard deviation outliers (because it is a non-zero probability) yielding a Warren Buffett or a Bill Miller, just like if you put Chuck Klosterman in front of a keyboard for an infinite amount of time, eventually you’ll get Shakespeare (but not good Shakespeare like Hamlet, something much shittier like The Tempest). The point is, attributing any of that to anything other than a fuckload of luck, usually an advantaged upbringing, and plenty of market manipulation is disingenuous.

      So When Genius Prevailed is not just a place for security analysis, dick jokes, and plenty of Sofia Vergara, but also a pun on everything that is wrong with the market and those who write about it (present company included).

      More than anything though, Money McBags just liked the way it sounded.

      Bottoms Up,

      Money McBags

  • #7 written by nzsvz9
    about 7 years ago

    Mister Change McCarryon,

    A gracious thank you for the response. Not having ever walked the corridors of finance, and only having seen the Waldorf from the outside … your discussion about the insider and priveledged essentially controlling the large ebb and flow in the market is altogether not surpising, but still disappointing. Not as disappointing as Brett Favre, but at least as disappointing as let’s say … David Hasselhoff. Eh?

    So though the game is not rigged, you describe it as being one of blind luck on the part of the investor due to outsider status, and lack of real information. Kind of like being able to read all the ingredients on the food product label but not understanding a wit what each of them means … well, sort of. That and a sh!tload of bad smell, Chinese pee pee, toxins and other undisclosed ingredients, but they’re not listed now are they?

    Regards,

    Known as gracious reader nzsvz9

  • #8 written by jerry parker
    about 6 years ago

    you’re one of the funniest guys I’ve read in a LONG TIME…and your stock picks aren’t too bad either(been in QCOR since $1.30 and added as high as $10).
    if you’re ever out in SF area, let me know…we can share some fun stories from my past 17 yrs in the investment biz(both sell and buyside).
    P.S. why are there 10 schools that claim they are top 3 MBA programs.

  • #9 written by Matt K
    about 6 years ago

    Thanks for the tip re spankwire.com

  • #10 written by fundamental lover
    about 5 years ago

    Wow you are very jenius

  • #11 written by JDUSBGUYSL
    about 5 years ago


    nzsvz9:

    Mister Change McCarryon,
    A gracious thank you for the response. Not having ever walked the corridors of finance, and only having seen the Waldorf from the outside … your discussion about the insider and priveledged essentially controlling the large ebb and flow in the market is altogether not surpising, but still disappointing. Not as disappointing as Brett Favre, but at least as disappointing as let’s say … David Hasselhoff. Eh?
    So though the game is not rigged, you describe it as being one of blind luck on the part of the investor due to outsider status, and lack of real information. Kind of like being able to read all the ingredients on the food product label but not understanding a wit what each of them means … well, sort of. That and a sh!tload of bad smell, Chinese pee pee, toxins and other undisclosed ingredients, but they’re not listed now are they?
    Regards,
    Known as gracious reader nzsvz9

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