Chroma Investing

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

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.

Does Market Timing Work?

The first evidence I discovered that some form of Market Timing may work was when I read Jeremy Seigel’s weighty tome, Stocks for the Long Run. He used what is called the 200 day moving average of a stock to determine a buy and sell point for equities, with investment going back and forth from cash to equities.

Investing in Low Price to Book Stocks- Value Investing Series

It may seem contrary to some investors to invest in Low Price to Book Value Stocks. After all, isn’t there a reason the stock price in relationship to assets is beaten down? Yes, probably. Is it enough that Ben Graham made money using a version of a low Price to Book investment strategy? For some investors, yes. Luckily we have someempirical evidence supporting this investment strategy. There are several studies that lay out the case for investing in these type of stocks.

What Next In Investing?

This is important because, many stocks are not cheap right now, and finding great or even really good investments has gotten tight. I have mostly been focusing on a couple of strategies, including NCAV stock investing.

Free Magic Formula Lists – Chroma Investment Links

But I wanted to turn you on to an interesting site. It is essentially a list of Magic Formula stocks. The Magic Formula Investing isn’t new. Joel Greenblatt of Gotham Capital fame devised this system of essentially low P/E, High ROIC companies. He outlined the Magic Formula Investing Approach in his Little Book that Beats the Market.

Beginning Investment Strategies – John Templeton pt. 2

In looking at John Templeton’s Maxim’s in part one, we did not get to an actionable side to his investing philosophy. Good ideas but how did he really invest.

To me the story that sums up what he was about is probably the most famous tale he recounts in an interview for Smart Money. Just before World War II broke out he bought 100 shares of the 100 plus stocks that were trading on the New York Stock Exchange below 1 dollar, including 37 that were already in bankruptcy. He summed up his reason succinctly. War was looming in Europe. Things that had been in surplus before would not be in surplus in war time. He found opportunity in the political situation of his day. Three years later 100 of 104 companies were profitable. He looked for opportunities that value could be perceived that the herd of regular investors did not see.

Greenbackd – Interview- Deep Value Investing

Simoleon Sense has an insightful interview today with the author of the great deep value blog Greenbackd. You can get to the interview here. Both blogs are terrific for incredibly different reasons and I have mentioned both in previous blogs, but it bears repeating.

Value Investing Congress 2009 – Macroeconomics are Important

You could think of this as a part two from yestedays post that laid out in outline what we missed for those of us that either didn’t know about or couldn’t attend the 2009 Value Investing Congress. One of the most interesting items I have read about this years Congress was the speech given by David Einhorn, a person I was not previously familiar with. You should download the speech NOW. He spoke about a previous failure that made him realize that as a good value investor you can not be agnostic to macroeconomic factors.

Value Investing Congress 2009 – What we missed

Value Investing Congress is a geek fest for value investors like me. I have not been able to attend because my paying gig won’t give me time off during the periods they offer this two day Value Investing series in October and May. Last week the fall version took place in New York. I won’t give you the summaries myself. Go to the source directly.

Value Investing Strategies for Beginning Investors – John Templeton

This is the third installment in our Investing Strategies for Beginning Investors. The first two explored Philip A. Fisher. This week we turn to the much respected John Templeton. Sir John, if youare into that kind of thing. When you look at Templeton you are veering into contrarian territory with an important dose of Deep value investment principles. Goodie.

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