Mohnish Pabrai: The Ten Commandments of Investment Management

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We’ve just been watching a recent presentation with Mohnish Pabrai at the Carroll School of Management – Boston College. Pabrai is discussing his ten commandments of investment management as follows: 1. Thou shall not skim off the top [fees] 2. Thou shalt not have an investment team 3. Thou shalt accept that thou shalt be wrong at least one-third of … Read More

Stanley Druckenmiller: Algos Have Taken The Rhythm Out Of The Market

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Here’s a great video with Stanley Druckenmiller at Real Vision discussing the impact that algorithms are having on his investing strategy saying: “These algos have taken all the rhythm out of the market and have become extremely confusing to me.” Here’s an excerpt from that video: Druckenmiller: I’ve also struggled mightily– and this is really concerning to me. It’s about the … Read More

Cliff Asness: What Type Of Diversification Works Best During The Worst Of Times

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Cliff Asness and the team at AQR recently released a great paper titled – It Was the Worst of Times: Diversification During a Century of Drawdowns. The paper uses nearly 100 years of data to evaluate the effectiveness of diversifying investments during the worst of times for most portfolios. Here’s the summary and conclusion: Summary Big equity drawdowns happen time and again and … Read More

Howard Marks: Latest Memo – The Seven Worst Words In The World

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Howard Marks has just released his latest memo which focuses on today’s economic environment compared to 2008 saying: “Thus the idea for this memo came from the seven worst words in the investment world: “too much money chasing too few deals.” Here’s an excerpt from that memo: I have a new book coming out next week titled Mastering the Market … Read More

Howard Marks: 6 Classic Investment Mistakes That Every Investor Should Avoid

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In his 2006 memo titled ‘Pigweed’ Howard Marks provided investors with six classic investment mistakes that every investor should avoid using the real-life case study of hedge fund – Amaranth Advisors. Amaranth Advisors was an American multi-strategy hedge fund founded by Nicholas Maounis and headquartered in Greenwich, Connecticut. During its peak, the firm had up to $9 billion in assets under management before collapsing in September 2006, after … Read More

Michael Mauboussin: Five Common Mistakes That Investors Make

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Here’s a great video by Michael Mauboussin in which he highlights five common mistakes that investors make. These are: 1. “First is it is really important to try to minimize your own mistakes.” 2. “The second big mistake is the failure to understand regression toward the mean.” 3. “The third big problem is overconfidence.” 4. “The fourth big problem is … Read More

Murray Stahl: We Find Things That Nobody Wants To Buy For A Reason That Is Not Related To Fundamentals Of Valuation

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One of the investors we like to follow closely here at The Acquirer’s Multiple is Murray Stahl, CEO of Horizon Kinetics. Stahl has a particular knack of finding investment opportunities in ‘special situations’. In this interview with Ticker he discusses areas where investors can find these opportunities saying: “In a nutshell, we find things that nobody wants to buy for … Read More

Richard Zeckhauser: Mere Mortals Should Not Try To Imitate Warren Buffett or Bill Miller

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Some years ago Richard Zeckhauser, a professor of political economy and bridge player, wrote a very interesting paper called – Investing in the Unknown and Unknowable (UU). His paper discusses how the wisest investors have earned extraordinary returns by investing in the unknown and the unknowable (UU). But they have done so on a reasoned, sensible basis. He goes on to explain some of the central principles … Read More

Michael Burry (1999): It Seems To Me That AAPL Is Incredibly Undervalued @ $1.59

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Back on 5/17/1999 Michael Burry, a self confessed value investor, wrote a post on an investing message-board called – The Silicon Investor. His post detailed his valuation on AAPL stock, which at that time traded at around $1.59. Currently the stock trades at around $218. Here’s an excerpt from that post: Michael Burry: It seems to me that AAPL is incredibly … Read More

Howard Marks: One Thing That Makes Great Investors Great

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Here’s a great interview with Howard Marks from his own series called – The Marks Investor Series. In this Q&A session Marks discusses what makes great investors great. Here’s an excerpt from that interview: I think we can lump the explanation under the heading of emotion. You mentioned Seth Klarman and Stan Druckenmiller. These are two people that have been here … Read More

Ken Fisher: Time In The Market Beats Timing The Market – Almost Always

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Ken Fisher, founder of Fisher Investments, wrote a great article in USA Today which illustrates the importance of spending time in the market as opposed to trying to time the market, in order to achieve outstanding results. Here’s an excerpt from that article: Riding all of the stock market’s ups – and none of its downs – is a popular … Read More

Francis Chou: Value Investors Must Remain Confident When Your Strategy Does Not Appear To Be Working

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One of the value investors we like to follow closely here at The Acquirer’s Multiple is Francis Chou, founder of Chou Associates Fund. Chou recently released his 2018 semi-annual report in which he urged value investors to stick with their value investing principles in the current market environment saying: “The important thing is that we continue to be confident in … Read More

WSJ: How Did Warren Buffett Respond To Lehman and AIG When They Asked For Help In 2008

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Here’s a great video from the WSJ in which Warren Buffett discusses the 2008 financial crisis, how he was approached by both Lehman Brothers and AIG when they asked for help, and why he turned them down. Buffett recalls being contacted by AIG saying: On Friday, preceding the weekend, I got a call from AIG. AIG was going to run out … Read More

Bill Nygren: Intangibles Are The Key To Business Valuation Today

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Bill Nygren, Portfolio Manager at The Oakmark Funds, has just released a video which highlights the importance of considering intangibles when valuing businesses today saying: “The linkage between book value and business value has been broken because so many important assets today are intangibles and don’t even show up on the balance sheet.” Here’s an excerpt from the video: GAAP … Read More

Charlie Munger: Look For Businesses Using The Cancer Surgery Formula

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In a 1995 edition of The Outstanding Investor Digest, Charlie Munger recounted the types of business models that he and Warren Buffett like to invest in. Most noteworthy is what he calls the ‘cancer surgery formula’ model saying: “I’ve had many friends in the sick-business-fix-up-game over a long lifetime. And they practically all use the following formula — I call … Read More

Bruce Flatt (Brookfield): “Being Contrarian And Not Being Where The Crowd Is Going – Is Hard To Do – But The Most Lucrative If Accomplished”

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Here’s a great presentation from Bruce Flatt, CEO of Brookfield Asset Management, speaking to the folks at Google about – Durable Principles for Real Asset Investing. Flatt makes some great points on the importance of going against the crowd and maintaining a contrarian approach to investing saying: “We’ve always tried to adhere to the strategy that being contrarian and not being where … Read More