Chroma Investing

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

Lessons Learned from Mike Burry

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.

Ben Graham’s Stock Selection Criteria – Value Investing Series

I found this idea in Tweedy Browne’s What Has Worked in Investing. And after a little more research I have included it in my Value Investing Series. In a “Test of Ben Graham’s Stock selection Criteria,” Henry Oppenheimer studied whether or not a set of Ben Graham’s investing criteria actually worked. Toward the end of Graham’s life he espoused a different, although related criteria to what he espoused in his master works Security Analysis and the Intelligent Investor.

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.

Why Does Value Investing Rock? – The Series

As part of a new series of Posts I am going to discuss why Value Investing is my preferred investment philosophy (although I have been known to stray now and then). I am going to sum up some of the most important studies that demonstrate why these theories are better than other strategies, in the long term. This does not mean that Uncle Homer didn’t make a killing buying Apple at $12 and selling it over $200. There will always be exceptions. But who wants to be an exception? I would rather have sound trading strategies on my side and not just luck. Although I will take good luck any time I can get it.

Nu Horizon Electronics (NUHC) – A NCAV stock

It takes almost as much research to discover why you don’t want to invest in a company as why you do. But going through the process is important and we make different decisions for different reasons. Nu Horizons came to my attention in the NCAV Newsletter at Gurufocus that I have posted about before. When they recommended the stock it was trading around $3.85 and they had NUHC’s NCAV value as $6.81. In their words, “a 71% upside.” Very interesting. I began to investigate further.

Value Investing Congress Discount Ends

Value Investing Congress is having it’s West Coast version the first week in May, 2010. There are a variety of discounts available that all amount to the same thing, but here is the thing. The discount up to $1750 ends tomorrow night at Midnight.

Exploring Premium Services – Opportunistic Investor

Anyone considering investing money in a premium investing service remember should be mindful of two things. For a beginning investor the important item is whether or not a service fits your investment philosophy. In makes little sense to pay money for technical trading tips if you are fundamental investor. Second, and this is important for the small money investor, make sure the service is worth the money

Searching for a Good Value Stock

I spent the better part of this last weekend researching ideas for investing. I know I have been on a tear about the state of the stock market and the risks moving forward, but I didn’t think after fifteen hours of research I would come away empty handed. But I did.

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.

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