MacroEconomics and Value Investing

If you listen to investing master Warren Buffett, MacroEconomics doesn’t play a role in his decision to invest in a stock or company. Nor does the direction that the stock market is heading. I agree with the second but not the first.

The direction of the stock market in general is not as important as what you expect the direction of a particular stock to be over your investing horizon. The stock market’s movements may not be very well corollated to the price movement of your stock. In which case the direction of the stock market as a whole is completely irrelevant to your investment decisions on that stock. This kind of stock is a good hedge against down turns in the market.

Investing 101, Not Running before you Walk. Start Here

If you are the kind of small time or beginning investor that I am hoping is reading this blog, then I didn’t just throw you into the deep end of the pool, I dropped you into the ocean. So consider this another swimming lesson. Investing 101. Beginning Investor class. More like a list of Investor tips.

The Opportunity of Low Volume Penny Stocks

There is a reason that many established investors will warn you away from penny stocks. A penny stock is usually any stock trading under $1.00 Today’s market for VaxGen (VXGN), a company we have discussed in previous posts, is a perfect example. The stock price dropped at midday today more than 8% on volume of [...]

Valuing a Net Net Stock – the lite version

Yesterday’s post was missing something. How do you value Benjamin Graham’s “Instrinsic Value” of a company? I left it out for a reason. The answer is: it depends on who is doing the valuation and what tools they use. Get this- some investor’s don’t value companies. They don’t care about it. Really. These investors are [...]

What is a Net Net Stock?

What is a Net Net Stock? First, if you don’t know who Benjamin Graham is we need to introduce him to you. He was the godfather of what is now called Value Investing. Ben Graham was an interesting dude who began his trading style in the depression.

New Net Net Position Added Vaxgen Inc. (VXGN)

I have added a net net position in a stock I have been following for a while: VXGN.

But don’t do what I just did. Please! If you already know you are value investor who understands how to value a stock from an assets perspective, go ahead do what you like. But if you are a beginning investor still trying to figure this out, don’t invest in this stock.

Welcome to Chroma Investing

Does the world really need another investing blog? Probably not. But here I am anyway.

In my hubris I figured my approach was a little different than most investing bloggers and perhaps a little more accessible. I am not a full time financial analyst, nor do I have a financial degree. I am not really interested in Quant type analysis. I use spreadsheets when they are useful and ignore them when they get in the way. I am not religious about an investing style, but I am a fanatic about wine. I invest for myself because it is enjoyable to me , but more importantly I want to make money.

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