Chroma Investing

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

T2 Partners – Another Hedge Fund Perspective

I know that Hedge Funds have taken a bad rap recently, but one I really respect is T2 Partners. It is run by Whitney Tilson and Glenn Tongue. I have referred to them before. In one of my early posts on Bearish Real Estate News, I discussed their presentation on the real estate market and their book, More Mortgage Meltdown: 6 Ways to Profit in these Bad Times, but more importantly they are the movers behind the Value Investing Congress, something I have discussed a few times.

Investing Risks – What is Risk?

Looking at the risks of an investment is vital to understanding whether or not it is a sound investment. In a speech Alice Schroeder, author of Snowball, said that Warren Buffett starts his examination of a potential company by looking at the risks involved. If the risk is too high, he won’t go any further. We would be wise to follow this example.

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.

Small Money Investors – Don’t Invest like Warren Buffett

When I say don’t invest like Warren Buffett, I mean don’t invest like Buffett does now. We can look at this in two parts.

Beginning Investor Links

If you are just starting your investing these are good websites to check out for different reasons. They are also good for a small time investor.

American Association of Individual Investors – This is the website of the organization that is devoted to helping individual investors like you and I become better informed, and to make better investment decisions.For a small fee ($29) you can join. They have some interesting screeners that they have set up based on different investment strategies. Probably worth it just for that one feature. They also have lots of seminars and speakers if you become a member.

F Wall Street – I have commented on Joe Ponzio’s website before. He has an easy to navigate and elegant site that is full of information on valuations from a mostly Warren Buffett style investing approach.

Financial Statements for Beginning Investors – Cash Flow Statement

Yesterday I discussed the first of three acts of a companies Financial Statements.Income Statements for beginning investors. Today Act 2, Cash Flows. And we will explore it in all its breathless glory. Once again we will utilize the cash flow from Morningstar for VaxGen Inc. (VXGN) to save ourselves the difficulty of sifting through the […]

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 priceĀ  dropped at midday today more than 8% on volume of […]

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