Profiting Without Predicting the Future

Three years ago we added a stock to the Value Fund called Rubik Financial. It owned a business selling software to financial institutions, which wasn’t making much money, but wasn’t losing much either. It had a management team that didn’t inspire us with confidence, but wasn’t about to blow the business up. It had a new product, called ‘Bank in a Box’, that had cost shareholders a small fortune but wasn’t (yet) generating any revenue. But the sole reason we bought the shares – for an average of 5.5 cents each - was that it had 6.7 cents per...

Three years ago we added a stock to the Value Fund called Rubik Financial. It owned a business selling software to financial institutions, which wasn’t making much money, but wasn’t losing much either. It had a management team that didn’t inspire us with confidence, but wasn’t about to blow the business up. It had a new product, called ‘Bank in a Box’, that had cost shareholders a small fortune but wasn’t (yet) generating any revenue.

But the sole reason we bought the shares – for an average of 5.5 cents each - was that it had 6.7 cents per share of cash on the balance sheet and another 1c per share in other listed investments.

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