Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Howard Marks Memo on the U.S. Debt

One of my favorite speakers at the Value Investing Congress, my favorite Value Investing Conference, in May was the well known value investor in the behavorial finance tradition, Howard Marks. He recently wrote one of his infamous memos to his Oaktree Clients. This one puts sovereign debt in the bullseye. The United States in particular. […]

More James Montier via EuroshareLab

After reading my recent post on James Montier’s latest GMO white paper, Tim duToit of Euroshare contacted me and informed me of his resource page for all things James Montier. In my ongoing fandome of Montier I have included the link to James Montier resource page. Tim also has a page devoted to book recommendations […]

Confidence or Overconfidence in Investing?

One of the criteria some value investors use for sizing their stock purchases is their “confidence” in the validity of their analysis on a particular company.  If you ordinarily invest 5% of your portfolio in a particular companies’ stock, you might, if you are very confident, in your analysis, size up your position to 10% […]

What is your Investing Edge?

If you scroll down his recent 2010 Letter Seth Klarman asks, “What’s your edge?” He asks this question in the context of developing a framework for investing success. It is a vital question. And if you don’t have an answer, it is time to develop one. We all have some advantages over other investors. Are […]

Avoiding Confirmation Bias

As I have mentioned previously, one of the points of the 80-20 Portfolio is to incorporate some of the research of Behavioral Finance into an Investing Strategy. One of the behavioral traps we go through is something called Confirmation Bias. In short, this is when you look at facts that agree with your investing thesis […]

Getting Out of Our Own Way in Investing

This post is really a riff on yesterday’s A Few Lessons in Behavioral Finance. What I was really struck by is all the psychological traps that are waiting for us. And it really isn’t whether we will make mistakes in investing, that is all but certain, but how we can minimize what often seems to […]

A Few Lessons in Behavioral Finance

My Investing Notebook has a presentation called Confessions of a Value Investor: A Few Lessons in Behavioral Finance. I am ordinarily not a fan of looking at presentation, because it is easy to make incorrect conclusions without understanding the context or the point the author is trying to make. In this case, I think the […]

Looking Outside to Get Inside

One of the things about the pursuit of knowledge, is that it is satisfying for its own sake. I have found that you can often find useful information, or perspectives in other disciplines. One of my new favorite blogs Psy-Fi is the kind of place that opens your mind to other perspectives, but then circles […]

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