Warren Buffett: We Prefer Outperformance in Down Markets

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In his 1960 Partnership Letter, Warren Buffett outlines his goal of achieving long-term performance superior to the Industrial Average, emphasizing that this superior performance will not be consistently evident compared to the Average. He explains that outperformance is likely in stable or declining markets, while performance may be average or … Read More

Howard Marks: The Best Investment Opportunities In 2024

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During his recent interview with Bloomberg, Howard Marks explains that leveraged companies will face difficulties renewing their debt and will incur higher costs, creating better investment opportunities. Six years ago, banks offered generous loans at low interest rates, but now the terms are much stricter. This shift particularly impacts private … Read More

Howard Marks: Accepting & Adapting In The Current Market Environment

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Howard Marks emphasizes the importance of understanding and accepting the current investment environment, recognizing that it may not always present clear opportunities. Investors should assess market conditions accurately and act accordingly, avoiding actions based on ignorance or attempts to change the market. Marks’ investment philosophy is influenced by Japanese concepts, … Read More

Warren Buffett: WPC: From $10.6 Million to $221 Million

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In his 1985 Berkshire Hathaway Annual Letter, Warren Buffett explained how in mid-1973, he purchased Washington Post Company (WPC) shares at a quarter of their business value, capitalizing on a significant market undervaluation. Most investors, influenced by academic theories on market efficiency, ignored intrinsic business value. By year-end 1974, despite … Read More

Bill Ackman – Top 10 Holdings – Latest 13F

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One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More

Warren Buffett: How To Identify Outstanding Managers

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In his 1986 Annual Letter, Warren Buffett acknowledges his underperformance in deploying capital compared to the excellent management by his company’s managers. Buffett and Vice Chairman Charlie Munger focus on retaining talented managers, who typically come with acquired companies and perform exceptionally due to their passion and owner-like mentality. Their … Read More

David Einhorn: How To Survive Irrational Markets

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In his book – Fooling Some of the People All of the Time, David Einhorn describes the technology stock bubble, where investors poured capital into tech stocks, abandoning traditional investments and value investing. Julian Robertson’s Tiger Fund, which held old-economy stocks, suffered, leading to its liquidation. Einhorn’s fund experienced significant … Read More

Warren Buffett: Spotting A Business with A Long-Lasting Competitive Edge

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During the 2017 Berkshire Hathaway Annual Meeting, Warren Buffett explains how Berkshire Hathaway identifies businesses to acquire, emphasizing long-term competitive advantage, trusted management, and cultural fit. He recalls purchasing See’s Candy in 1972, highlighting their confidence in its lasting appeal despite higher prices. This confidence has led to significant profits … Read More