Chroma Investing

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

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 […]

Caution ahead – Seth Klarman’s worried

I just reread this May interview that Jason Zwieg did with Seth Klarman the hedge fund manager of Baupost Group. I have been spending a lot of time pondering fat tail risks and worse case scenario investing. Mr. Klarman’ s view more eloquently encapsulate some of my own views so I will simply include the […]

Top Ten Investment List for 2009

Everyone loves lists it seems for this time of year, so I have complied my own. They are not all the same type of items, just important things that came up this past year. They are certainly not all the best investment ideas I had.

Reevaluting Facet Biotech (FACT)

Earlier in the month I discussed a non chroma portfolio sale of Facet Biotech (FACT) because I thought it explefied some of the non traditional techniques I apply to my value investing ideas. But this stock is one that keeps on giving. There are more lessons for the beginning investor.

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.

Closed Position in Facet Biotech (FACT) a former Net Net Stock sort of

This is sort of a cheat. I purchased my shares of Facet Bitoech before launching this blog. It does highlight a few ways that I have diverged from the true religion of value investing, while still being a believer. What? I know and I haven’t even started drinking yet.

I purchased 200 shares of FACT on 4/23 at $8.95/share. It looked to me to be a pseudo Net Net stock. What does that mean? It means that when I bought FACT its liquidation value was slightly higher than I bought it for, but it didn’t have a traditional track record or characteristics of a true Net net stock, like a good revenue stream. It was also a spin-off of the drug development operations of PDL Biopharma, doing double duty for me.

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