Howard, If I’m remembering right, you thought highly of Leucadia’s management, and you held positions in both their stock and their bonds. I received notice today that their 7-1/8’s of ’17 are being called. That will bump my YTM to 16.8% (from an if-held-to-maturity 11.3%), making me wish I had bought more of them. If wishes were horses …”, right? The call did get me to thinking about position-sizing again. Is the downside of not buying enough of the things that do work out offset by the upside of not buying too much (or, better, none at all) of the things that don’t? Hard to say, right? I do know that my caution in the past three years has hugely cut down the number of default/Chapter 11s I’ve endured compared to prior years, and my concern to obtain wide diversification has put me into more situations that have worked out than not. So the buying continues. Today, I added my 23rd new position for this year, nearly every one of them spec-grade, because that’s where the action is. Charlie
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