Today is the last day to save $1400 to attend the Value Investing Congress. Tomorrow the Price goes up. If you are thinking of attending click through and sign up. Also, if you are planning on attending and want to get together for a drink to talk value investing, send me a note at […]
One of the ways you develop an edge is continuing to refine your investing chops. One of the best ways, apart from reading this blog, is to learn from masters, investors who have the skill and experience to help you develop insight into the process of value investing. What if I told you could do […]
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 […]
Recently, I was at the Motley Fool website. I use their CAPS as one the sources for common knowledge, like Yahoo finance message board. But that is another post. I like their breezy style and subscribe to their Hidden Gems service. I decided to check out how they compare their returns to their benchmarks. To […]
This posting is really a follow up to a thoughtful response I received from Parker Bohn, one of my readers, to my post Worse Case Scenario Investing. Here is his part of his comment, “…I’ve been thinking about the nature of exponential growth and disasters. Let’s say that after inflation and taxes, you could in […]
I have decided to set up another real money portfolio to test out my ideas of 80-20 Investing, which I have previously discussed. For 20% of the effort I believe it is possible to get 80% of the investing result. The idea is fairly simple. Set up some investing criteria, and when a stock passes […]
Burry was the guru behind Scion Capital. He was a great stock picker and later made $100 million buying credit default swaps, investing against the housing bubble.
I am not going to recount the article. Read it if you are interested in what great investors do. It is a great read. I am just going to share with you the what I take away from the article.
In surveying some of my favorite blogs recently, I have come upon something that hadn’t previously occurred to me, but could potentially alter how I invest. That is the problem with back testing Investing Strategies. Greenbackd posted an interesting starter piece on this subject called Walking the Walk, that led me back to the original blog from Aswath Damodaran called Transaction Costs and beating the Market. I have often thought there were practical problems with back testing, but I had not tried to articulate them until I read these posts. Both are excellent and worth reading. Damodaran, who is a Finance professor at NYU, and an author of Investment Fables (which I own), writes about the many ways to beat the market in general terms and then goes on to say, “Most of these beat-the-market approaches, and especially the well researched ones, are backed up by evidence from back testing, where the approach is tried on historical data and found to deliver “excess returns”.
In light of the recent earthquake in Haiti and the ensuing Humanitarian crisis I wanted to address a less lucrative investment, but one that can help others in need. What do people in crisis often need to rebuild: Capital. Investors supply capital, thus humanitarian investing is not such a far fetched concept.
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.« go back — keep looking »