On the first tranche we were down 28.71% before the market opened this morning. We chose the companies using the test we used to apply to buying private businesses: (1) the enterprise has no debt other than receivables/inventory bank loans, (2) it pays a dividend to its investors (in our evaluation the yield is completely but the fact of a payouts is valuable as a measure of management/owners' acceptance that shareholders are entitled to at least a small share of the tax advantages - something the Oregano never has had the grace to acknowledge), (3) the solvency ratios - Z-score, dividend/$, debt/$, current and quick ratios - guarantee 6 months' survival with no income, (4) the M-score says they keep straight books. We add the Fama fact of life - companies with smaller market caps do better over time, if they are solvent enough to survive, because they are swallowed up by the bigger fish. After today's additional buying too soon, our total loss was reduced to 25%; and we are down to our last 90% in cash. As a bond equivalent, the portfolio is now paying 3.61% on market, 2.71% on cost.


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