Chroma Investing

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

Charlie Munger’s Final Westco Remarks

Ben at Inoculated Investor has posted his terrific notes on the Final Westco Conversation With Charlie Munger. These are Ben’s notes, not mine, so if you have praise, go to his website and thank him. Charlie Munger is, in his own way, an investing rock star, like his partner in Berkshire Hathaway, Warren Buffett. But […]

What I Learned at the Value Investing Congress

The Congress is no ordinary Value Investing Conference The Value Investing Congress West was more than a month ago. It is a value investing conference worth attending. If you want a great set of notes go to Ben’s Inoculated Investor to get them. I took notes too, but his are better than mine. I am […]

What is Focus Investing?

The concept of Focus Investing is devilishly simple. Take the magnifying glass out and focus it on the very best investment ideas you have. Don’t pull the investment trigger unless you can say this is too good to pass up. It is the extreme opposite idea of diversifying your investments in the manner suggested by many financial advisors.

Is the Stock Market Fairly Valued?

In this vein, I had heard that Buffett had some metric for valuing the over all stock market, but I couldn’t seem to locate it. Thanks to the people at Gurufocus ( I really should get a commission for mentioning them so much). Gurufocus described that metric in their article Where are We With Market Valuations. So here it is: Total Market Cap/GNP. And according to Gurufocus the stock market is fairly valued.

Discounted Cash Flow (DCF) Spreadsheet for Mac

Strangely, it never it occurred to me that anyone would be interested in a Mac spreadsheet for valuating a company based on DCF. I created my own because I could not find one on the internet, so I incorrectly figured no one really used a Mac in this world, but me. Where as the entertainment business is a Mac dominated industry, finance seems to be PC dominated industry and for good reason. Microsoft sucks ( I am not being harsh) at porting Office for Mac. It stripped out some of the most useful features in the excel version for Mac and has no intention of adding them in the future.

What do Beginning Investors Need?

If you are a beginning investor what do you need to succeed? The short answer is perspective and patience. But the devil is in the details.

Perspective comes with time. But if you are starting out how can you possibly gain the perspective. Borrow someone else’s. There are gobs of great investors that will tell you how great they are on their websites. A few great investors have written books that are worth reading. Joel Greenblatt and Seth Klarmann come to mind. Spend some time reading and digesting the methodology. Pick it a part and decide what works for you and what doesn’t.

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