Investors Obsess Over Active vs. Passive Investing: There’s a Third Option

Mitchell MauerResearch Comments

What is the best approach to building a common stock portfolio: active or passive investing? This has been an ongoing debate for several decades. However, few investors realize there is a third option which is far superior to either of the first two: systematic investing. Systematic investing combines the best attributes of active and passive investing while eliminating the downfalls … Read More

Beware The Profit Makers – Cash is King!

Johnny HopkinsResearch Comments

If there’s one thing I’ve learnt about analyzing financial statements over the years, it’s that you must analyse all three financial statements, Balance Sheet, Income Statement and Statement of Cashflows before you consider making an investment. Here’s a real-life example to show you what I mean. In 2015 AT&T Inc. (NYSE:T) reported a Net Profit of $13.34 Billion. That’s the good news, but … Read More

How Did The Top 30 Deep Value Large Cap US Stocks Perform This Week?

Johnny HopkinsResearch, Resources Comments

We run three screens here at The Acquirer’s Multiple. The All Investable Screener This screen shows the top 30 companies in The Acquirer’s Multiple® All Investable Stocks universe, which includes the largest half of U.S. exchange-traded stocks and ADRs. The screen excludes financials and utilities. The Small & Micro Cap Screener This screen shows the top 30 companies in The Acquirer’s Multiple® Small and … Read More

How To Pick Good Stocks By Trying To Kill The Business (Strategy) – Bruce Berkowitz

Johnny HopkinsBruce Berkowitz, Research, Resources Comments

(Image Credit, institutionalinvestor.com) One investor I like to follow closely, is Bruce Berkowitz. Berkowitz is the Founder and Chief Investment Officer of Fairholme Capital Management, and President and a Director of Fairholme Funds, Inc. In 2010, Berkowitz was named as the 2009 Domestic-Stock Fund Manager of the Year by Morningstar as well as the Domestic-Stock Fund Manager of the Decade (2000-2009), … Read More

How to Find Undervalued Stocks Using the 80/20 Rule – Bill Nygren (Part 1)

Johnny HopkinsBill Nygren, Research, Resources Comments

(Image Credit, fortune.com) Bill Nygren has been a manager of the Oakmark Select Fund (OAKLX) since 1996, Oakmark Fund (OAKMX) since 2000 and the Oakmark Global Select Fund (OAKWX) since 2006. He joined Harris Associates in 1983 and served as the firm’s Director of Research from 1990 to 1998. Harris Associates L.P. has been adviser to The Oakmark Funds since … Read More

The Lehman Brothers $1.1 Billion Discrepancy, “Accounting Ingenuity” – David Einhorn

Johnny HopkinsDavid Einhorn, Research, Resources Comments

(Image Credit, forbes.com) David Einhorn is one of most famous hedge fund managers on the planet and a master of company analysis. He’s the founder and president of Greenlight Capital, a “long-short value-oriented hedge fund”, which he started in 1996 with $900,000. The fund now has $9.27 Billion in assets under management and since inception, according to Greenlight, has returned 1,902% … Read More

The Lost Art of Contrary Thinking – Seth Klarman

Johnny HopkinsResearch, Resources, Seth Klarman Comments

Just about every investor has heard of Seth Klarman. According to Forbes, “Investing legend Seth Klarman runs Boston-based firm The Baupost Group. With $27 billion under management, Baupost is one of the largest hedge funds. It posted small losses in 2015. An avid philanthropist, his foundation’s assets hit $350 million as of the latest public filing.” “An admirer of Warren … Read More

How Do You Know When a Company is in “The Value Zone” – Arnold Van Den Berg

Johnny HopkinsArnold Van Den Berg, Research, Resources Comments

(Image Credit, gurufocus.com) Value investor, Arnold Van Den Berg founded Century Management in 1974. He is a principal of the firm, the Chief Executive Officer, and co-Chief Investment Officer. According to investment-advisors.credio.com, Century Management has $1.03 Billion in Assets Under Management. Van Den Berg has no formal college education but gained his market knowledge through rigorous self-study, tremendous dedication, and over 45 years … Read More

How to Develop a Simple Investing Strategy, and Don’t Try to Calculate Intrinsic Value – Charles Mizrahi

Johnny HopkinsCharles Mizrahi, Research, Resources Comments

(Image Credit, twitter.com) A lot of investors have never heard of Charles Mizrahi. Mizrahi is editor of the Hidden Values Alert and the Inevitable Wealth Portfolio newsletters. Hidden Values Alert has been named one of Marketwatch.com’s 10 Best Advisors from October 2007 to January 2015…a period that included the Financial Crisis of 2008 and the subsequent bull market that began March 2009. The returns … Read More

How to Find Great Investments, and Why You Should Ignore DCF’s – David Winters

Johnny HopkinsDavid Winters, Research, Resources Comments

(Image Credit, www.reuters.com) David Winters is an awesome value investor and Founder and Chief Investment Officer of The Wintergreen Fund. Prior to founding Wintergreen Advisors in 2005, Winters was Chief Investment Officer of Franklin Mutual Advisors and Portfolio manager of the Franklin Mutual Discovery Fund. Winters joined Mutual Series in 1987, one year before the death of legendary investor Max … Read More

Why Models Beat Humans – What Works on Wall Street – James O’Shaughnessy

Johnny HopkinsJames O’Shaughnessy, Research, Resources Comments

(Image Credit, business.financialpost.com), One of the best value investors on the planet is of course, James O’Shaughnessy. James O’Shaughnessy, also known as Jim, is a Principal, and Chief Executive Officer at O’Shaughnessy Asset Management, LLC. He’s widely regarded as a pioneer in quantitative equity analysis. Jim and his team have identified characteristics that have led to successful investing over the last … Read More

Start with the balance sheet, and ignore DCF – Bruce Greenwald

Johnny HopkinsBruce Greenwald, Research, Resources Comments

(Image Credit, www.lifeposts.com) I’m always interested in reading and listening to anything by Bruce Greenwald. Bruce Greenwald is a professor at Columbia University’s Graduate School of Business and Director of Research at First Eagle Funds. He’s also the author of the books Value Investing: from Graham to Buffett and Beyond and Competition Demystified: A Radically Simplified Approach to Business Strategy. He’s … Read More

50 of the best investing blogs on the planet, plus a couple more (2016)

Johnny HopkinsResearch, Resources Comments

(Image Credit, julieeliselandry.com) As value investing bloggers, there’s a whole bunch of us out there sitting down at the computer trying to come up with the next writing idea that will appeal to readers. I like to think of us as a community of individuals that collectively do our best to educate and amuse investors and hopefully help some along the way. … Read More

What types of stocks should you own, and when is the best time to sell – Leon Cooperman

Johnny HopkinsLeon Cooperman, Research, Resources Comments

(Image Credit, wsj.com) Leon Cooperman CFA, is another one of my favorite value investors. In 1967 he started with Goldman Sachs. He held a number of key positions in the firm, he was founder, Chairman and Chief Executive Officer of Goldman’s Asset Management division. For nine consecutive years while at Goldman Sachs, Cooperman was voted the number-one portfolio strategist in Institutional Investor Magazine’s “All-America Research … Read More

The Superinvestors of Graham-and-Doddsville – (Freshly Transcribed 2016) – Part 1

Johnny HopkinsResearch, Resources, Warren Buffett Comments

“The Superinvestors of Graham-and-Doddsville” is an article by Warren Buffett promoting value investing, published in the Fall, 1984 issue of Hermes, Columbia Business School magazine. It was based on a speech given on May 17, 1984, at the Columbia University School of Business in honor of the 50th anniversary of the publication of Benjamin Graham and David Dodd’s book Security … Read More

How to find undervalued businesses, and why you should ignore management – Robert Bruce

Johnny HopkinsResearch, Resources, Robert Bruce Comments

(Image Credit, management-ideas.com) One of the best value investor’s on the planet is Robert Bruce. Bruce graduated from Columbia Business School in 1970 and went to work on Wall Street as a securities analyst. Then he read about Walter Schloss in Forbes Magazine and it changed his life. He now runs a successful fund with his son Jeffrey called, The Bruce … Read More

What’s most often forgotten about one of the greatest Superinvestors – Charles Munger

Johnny HopkinsCharles Munger, Research, Resources Comments

(Image Credit, dealbook.nytimes.com) If you’re a value investing nut like me you’ll have read everything you can on Charles Munger, Warren Buffett, Rick Guerin, Tom Knapp, Ed Anderson, Stan Perlmeter, Bill Ruane and Walter Schloss. The so called “Superinvestors of Graham & Doddsville”. But, we often forget that these investing megastars had ordinary lives before they became super-investors. A long time ago I … Read More