{"id":16890,"date":"2011-12-06T14:01:58","date_gmt":"2011-12-06T19:01:58","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=16890"},"modified":"2016-09-20T10:46:10","modified_gmt":"2016-09-20T14:46:10","slug":"this-is-interesting-post-office-vs-netflix-nflx-what-will-tilson-do-now","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2011\/12\/06\/this-is-interesting-post-office-vs-netflix-nflx-what-will-tilson-do-now\/","title":{"rendered":"This is Interesting: Post Office vs.Netflix (NFLX) &#8211; What Will Tilson Do Now?"},"content":{"rendered":"<p>As an investor, you probably know that there is nothing quite as humbling as sitting on a losing position and finally accepting that you were wrong, reversing the position (long to short or visa-versa) and it then moving against you <strong>again<\/strong>.<\/p>\n<p>While we do not subscribe to the theory of <em>buy and hold<\/em>, deep value players like mutual fund manager Whitney Tilson has a much longer tolerance for loss that we believe is necessary. Take as an example<!--more--> his recent and painful history with Netflix (NFLX). For a long time, he defended his position with what was described as a rather substantial position. He finally covered it earlier this year for a loss, only to watch shares plunge a few months later.<\/p>\n<p style=\"text-align: center;\"><a class=\"twitter-follow-button\" href=\"https:\/\/twitter.com\/andrewhorowitz\" data-show-count=\"false\">Follow @andrewhorowitz<\/a><script type=\"text\/javascript\" src=\"\/\/platform.twitter.com\/widgets.js\"><\/script><\/p>\n<p>That was only the start of the torture. He recently decided that the shares were sold-off to an extreme and made it publicly known that he was now seeing value in the company and switched to a long position. The chart shows the approximate time\/price that he covered and then bought shares.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2011\/12\/tilson_nflx-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-16892\" title=\"tilson_nflx\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2011\/12\/tilson_nflx-1.jpg\" alt=\"\" width=\"595\" height=\"325\" \/><\/a><\/p>\n<p>Now, in the <span style=\"color: #800000;\"><strong>red<\/strong><\/span> again, the Post Office may be doing what they can to shake out more investors in Netflix as they threaten to stop the next-day service. Netflix has been a customer enjoying the benefits of a quick delivery of their DVDs to subscribers and now will have to sit by as the Post Office puts a crimp in that process.<\/p>\n<p><strong>What will Tilson do now?<\/strong><\/p>\n<blockquote><p>By HOPE YEN Washington (AP) &#8212; Facing bankruptcy, the U.S. Postal Service is pushing ahead with unprecedented cuts to first-class mail next spring that will slow delivery and, for the first time in 40 years, eliminate the chance for stamped letters to arrive the next day. The estimated $3 billion in reductions, to be announced in broader detail on Monday, are part of a wide-ranging effort by the cash-strapped Postal Service to quickly trim costs, seeing no immediate help from Congress.<\/p>\n<p>The changes would provide short-term relief, but ultimately could prove counterproductive, pushing more of America&#8217;s business onto the Internet. They could slow everything from check payments to Netflix&#8217;s DVDs-by-mail, add costs to mail-order prescription drugs, and threaten the existence of newspapers and time-sensitive magazines delivered by postal service.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As an investor, you probably know that there is nothing quite as humbling as sitting on a losing position and finally accepting that you were wrong, reversing the position (long to short or visa-versa) and it then moving against you again. While we do not subscribe to the theory of buy and hold, deep value [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12,42],"tags":[483,490],"class_list":["post-16890","post","type-post","status-publish","format-standard","hentry","category-markets","category-stocks","tag-markets","tag-stocks","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/16890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=16890"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/16890\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=16890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=16890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=16890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}