A deeper look at David Tepper

[Moo Daeng]

There's a good amount on youtube of Tepper discussing the market.  He doesn't come across as some wild risk taker. These are all very calculated decisions based on analysis. Of course there are varying levels of risk that are strategically applied. 

Watch a few if you want to see and hear him. It's fairly boring stuff.

[TheSpecialJuan]

Christ, this guy might be Jordan Belfort's dad.

[Squirrel]

5 minutes ago, Moo Daeng said:

There's a good amount on youtube of Tepper discussing the market.  He doesn't come across as some wild risk taker. These are all very calculated decisions based on analysis. Of course there are varying levels of risk that are strategically applied. 

Watch a few if you want to see and hear him. It's fairly boring stuff.

Yeah he seems more calculated then risk taker.  If he sees a value he is not afraid to invest heavily in it. 

[Mr. Scot]

9 minutes ago, Moo Daeng said:

There's a good amount on youtube of Tepper discussing the market.  He doesn't come across as some wild risk taker. These are all very calculated decisions based on analysis. Of course there are varying levels of risk that are strategically applied. 

Watch a few if you want to see and hear him. It's fairly boring stuff.

Well, he didn't get a pair of brass balls as a gift for being overly careful.

[Mr. Scot]

20 minutes ago, Jon Snow said:

Well if he ends up buying the team one thing is for certain, It will never be boring in Panther land.  

And those that hated Dave's approach will loath this guy.

Here's to hoping it works.

Depends on who he picks to run the team.

After reading about him, I have a hard time imaging that being Hurney.  You never know.  It's possible he lets him finish out this season, but I don't think that's guaranteed.  He'll get to do the draft and at least the first half of free agency, but it's not unusual for scouting and personnel staffs to get fired right after the draft.

I'd expect him to pick a guy from the Steelers, maybe Omar Khan or Phil Kreidler.  Neither of those guys strikes me as particularly abrasive.

If he picks someone who's similar in personality to him though...yeah.

[Squirrel]

4 minutes ago, Mr. Scot said:

Well, he didn't get a pair of brass balls as a gift for being overly careful.

But not for being risky either.  He just would go further than other investors in investing in stocks and bonds.  The go hard or go home approach. 

 

Rather have that then Navarro. He seemed more like a bottomfeeder preying on people who was struggling. 

[Mr. Scot]

Just now, Squirrel said:

But not for being risky either.  He just would go further than other investors in investing in stocks and bonds.  The go hard or go home approach.

Rather have that then Navarro. He seemed more like a bottomfeeder preying on people who was struggling. 

I wouldn't call him stupid risky or anything like that.  "Fearless" is probably a better word than "risky".

Of course, betting millions on a financial transaction is a little more real world than going for it on fourth and one or signing a guy who had a character issue in college.  The consequences are far less serious.

Navarro? There's rumblings that the NFL may not like that rep either.

[Moo Daeng]

You can buy brass balls on Amazon.com. Gag gifts are gag gifts.

[Mr. Scot]

8 minutes ago, Moo Daeng said:

You can buy brass balls on Amazon.com. Gag gifts are gag gifts.

From the article...

Quote

He paused, allowing people in the crowd to snicker to themselves, then went on to recommend a handful of investments most would consider highly risky, among them debt in AIG and equity in financial companies like Bank of America and even some banks in teetering Europe. “I know, everyone hates the financials,” he said. “But the PIIGS”—Portugal, Ireland, Italy, Greece, and Spain, considered to be the most troubled European economies—“every single one has a deficit-reduction plan! The ECB—the Bundesbank—bought back government bonds!” He paused for dramatic effect. “Holy Christ. It’s like the chastity belt is off, and the girl is starting to play.”

 

Quote

Tepper had good reason to feel confident in this thesis. Last year, when the market effectively crapped itself, Tepper’s firm, Appaloosa Management, made a fortune rolling around in it. In February and March 2009, when consensus had coalesced among market watchers that certain financial institutions were insolvent and would have to be nationalized, triggering a massive sell-off that drove shares of companies like Citigroup and Bank of America into the single digits, Tepper decided to tune out the chatter. After all, the Treasury Department had said it would hold up the banks—why wouldn’t they keep their promise? He directed deputies at his firm to purchase billions of dollars’ worth of bonds and stocks in those and other financial institutions. Then they waited.

At the time, taking such a position was like swimming into the ocean as a tsunami approaches: It looked crazy. But actually it was the right thing to do. When the government intervened as promised, the value of the shares shot back up. Appaloosa made over $7.5 billion. Not bad for a tiny fund from New Jersey.

“It was like that scene in Trading Places with the orange-juice futures,” Tepper recalled early this summer, over lunch at the Hilton Hotel near his office, which is located in a nondescript red building across from the mall in Short Hills. “The whole market and the whole world were in pure panic,” he said, chuckling. “Everyone was too scared to do anything.”

There's more of the same in there as well.

Not sure the context of the videos - whether they're advice to amateurs playing the market or whatever - but he made a pretty significant amount of his fortune by not being afraid of doing things that others were too scared to.

As mentioned, it's easier to do that in football than it is in real life.

[Moo Daeng]

Reading more about him it's pretty clear. He has the discipline and means to do exactly what everyone says that you should do. Buy when things are at their worst. Bet that the markets will adapt. Understand there is a time to make money and a time to not lose money. These are the repeated concepts that come up in everything about Tepper.

https://25iq.com/2015/03/07/a-dozen-things-ive-learned-from-david-tepper-about-investing/

Quote

3. “We won’t stop if we’re down a little bit. We don’t freeze. We keep investing with a disciplined, logical approach.”

Michael Mauboussin points out: “You must recognize that even an excellent process will yield bad results some of the time. If you are going to be the in the business that David Tepper is in you need to stay focused on your process, rather than any specific short term result. If you make an investment and the odds are substantially in your favor and you generate a loss, that is OK as long as your process was sound.

A sound process exists when the process is net present value positive (i.e, genuine investing). If the process is net present value negative, that is gambling/speculation/a fool’s errand. Howard Marks points out the key elements in his process as follows: “a) have an approach b) hold it strongly c) accept that, no matter what, there will be times where your approach doesn’t work, and d) work within your own skill set and personality, not someone else’s.” David Tepper, Howard Marks, John Bogle, George Soros are not you and vice versa. Your investing approach should be consistent with who you are. Everyone is different. In addition to being disciplined and logical, David Tepper believes: “We’re pretty unemotional when we invest” which is a very good thing since most mistakes in investing are based on emotional or psychological errors.

 

[pnthrs]

1 hour ago, Mr. Scot said:

I'd add this too.

You're not looking at someone who would be afraid to move on from popular players.  Whether it be Cam, Luke, Olsen, whomever.  I get a definite sense that if he feels they can be replaced with someone better, Tepper will do it without blinking.

You can argue whether those would be good moves or not when and if the time comes, but I'd challenge anyone to read up on him and come back and say he wouldn't do it.

I have zero doubt that he would.

He is who we need. Fact. 

[Mr. Scot]

39 minutes ago, Moo Daeng said:

Reading more about him it's pretty clear. He has the discipline and means to do exactly what everyone says that you should do. Buy when things are at their worst. Bet that the markets will adapt. Understand there is a time to make money and a time to not lose money. These are the repeated concepts that come up in everything about Tepper.

Kinda like now, with us, and an owner who has to sell due to scandal...

[DaveThePanther2008]

9 hours ago, Mr. Scot said:

I'd add this too.

You're not looking at someone who would be afraid to move on from popular players.  Whether it be Cam, Luke, Olsen, whomever.  I get a definite sense that if he feels they can be replaced with someone better, Tepper will do it without blinking.

You can argue whether those would be good moves or not when and if the time comes, but I'd challenge anyone to read up on him and come back and say he wouldn't do it.

I have zero doubt that he would.

What I would hope is that he hires a GM that has his vision and allows him to keep or get rid if players.  Owners that meddle usually screw the team up more than they help it.

[Pimpdaddy]

...Sounds like he has a potential to be a Haslem or Snyder...my ego is bigger than yours... we'll see how it pans out i guess.... I like a loudmouth with something to prove over someone being stoic....