Philip Carret: “If The Figures Look Right And The Management Knows What It Is Doing, Why Does One Need A 40-Page Report?”

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One of our favorite investors here at The Acquirer’s Multiple is Philip Carret. Carret wrote one of the best books on investing called – A Money Mind at Ninety. There’s a great passage in the book, taken from his 1990 speech at Contrary Opinion Forum, in which he provides two valuable insights for investors. The first relates to borrowing money … Read More

Warren Buffett (Age 21): The Security I Like Best (1951)

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Here’s a great article written by the 21-year-old Warren Buffett for The Commercial and Financial Chronicle dated Thursday, December 6, 1951. The article is a great illustration of how a young Buffett analysed GEICO for potential investment saying: “At the present price of about eight times the earnings of 1950, a poor year for the industry, it appears that no … Read More

Walter Schloss: All Superinvestors Make Mistakes Of Omission

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The Annual Ben Graham Conference was held earlier this year and the topic was – investing mistakes. The panel members were Edwin Schloss, son of Walter Schloss, Paul Lountzis – President Lountzis Management, and Michael Lipper – President Lipper Advisory Services. Edwin Schloss shared a couple of great anecdotes on how he and his father made two very big mistakes … Read More

Jim Rogers: “Anytime That You Think You’ve Become A Financial Genius—It Is Time To Sit Back And Do Nothing For A While”

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One of our favorite investing books here at The Acquirer’s Multiple is – A Gift to My Children: A Father’s Lessons for Life and Investing, by Jim Rogers. Rogers co-founded the successful Quantum Fund with George Soros back in 1973. There’s a great passage in the book in which Rogers provides a great lesson for investors that are enjoying success. Here’s … Read More

Warren Buffett: How to Minimize Investment Returns

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In their Berkshire Hathaway 2005 shareholder letter Warren Buffett provided a great illustration of how shareholders continually sabotage their investment returns saying: “Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can … Read More

Alexander Roepers: Why Disciplined Investing Trumps Big Headlines

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One of the activist investors we follow closely here at The Acquirer’s Multiple is Alexander Roepers. Earlier this year Roepers did a great interview with Forbes in which he discussed his investment strategy. He highlighted the importance of thinking like a private equity owner, and staying within your circle of competence, in order to achieve investment success saying: “It’s a … Read More

David Einhorn: “Right Now The Market Is Telling Us We Are Wrong, Wrong, Wrong About Nearly Everything”

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David Einhorn recently released his Q2 2018 shareholder letter. It’s been another difficult quarter for Greenlight Capital losing an additional (5.4)%, and bringing the Greenlight Capital funds’ (the “Partnerships”) year-to-date loss to (18.3)%. In a quarter when the S&P 500 index returned 3.4%, bringing its year-to-date return to 2.6%. Despite the latest results Einhorn is still optimistic about his value investing … Read More

Howard Marks: Very Few Investors Consistently Know When A Stock Price Is Wrong, And By How Much, And In Which Direction

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Howard Marks provides a great reminder in his 2001 shareholder letter that it takes a lot more than hard work for active managers to be successful in investing. He added that increasing the number of analysts to their firm does little to add value to their analysis saying: “I was recently on a panel that was asked what gave our … Read More

Warren Buffett: “The Worst Deal That I’ve Made”

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We’ve just been listening to a great podcast at NPR with Michael Batnick discussing his new book – Big Mistakes: The Best Investors and Their Worst Investments. During the conversation Batnick tells the story of Warren Buffett’s greatest mistake, the purchase of Dexter Shoes. Here’s how he describes it: “So what he did was he bought a company called Dexter Shoes. And … Read More

Horizon Kinetics: Great News For Active Investors – The History Of Passive Investing Over The Past 20 Years

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One of the shareholder letters we really look forward to reading is the one from Horizon Kinetics. In their recently released Q2 2018 letter Horizon Kinetics provides some interesting research and commentary on the performance of passive investing over the past 20 years. The results may surprise many investors saying: “Let’s not forget that these roughly 6% stock returns were … Read More

Dan Loeb: Growth Stocks Are Now Value Stocks

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One of the investors we follow closely here at The Acquirer’s Multiple is Dan Loeb, CEO at Third Point Management. In his latest Q2 2018 shareholder letter Loeb makes the point that he’s now including ‘growth’ stocks into his portfolio in addition to ‘traditional’ value based stocks saying: “The value-based argument for owning “growth” stocks (or those with high EPS … Read More

Jesse Livermore: How I Once Missed A $1,000,000 Profit Through Impatience And Careless Timing

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One of our favorite investing books here at The Acquirer’s Multiple is – How To Trade Stocks by Jesse Livermore. There’s one passage in particular in which Livermore recounts the story of how he missed out on a $1,000,000 profit through impatience and careless market timing. Here’s an excerpt from that book: Let me tell you how I once missed a … Read More

Prem Watsa: Even Great Investors Have To Understand Their Limitations

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Here is a an example of what makes Prem Watsa a great investor. We were recently reading though the 1990 Fairfax Annual Report when we came across a couple of gems from Chairman Watsa. He is speaking about the mistake he made in the company’s investment banking business, and understanding your limitations as an investor. Here’s an excerpt from that … Read More

How Does Seth Klarman Implement His Value Investing Strategy Differently To Many Other Value Investors

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Last week @NeckarValue tweeted a link to a great interview with Seth Klarman at Barron’s titled – “Value Hunter in a Sky-High Market”. The article provided a number of great value investing insights by Klarman and how he implements his value investing strategy differently to a lot of other value investors. Here’s an excerpt from that article: Q: You talk about value … Read More

Mohnish Pabrai’s Advice For Value Investors – Forbes

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Here’s a great recent interview with Mohnish Pabrai and Kevin Harris at SumZero in which Pabrai provides some valuable investing insights: Kevin Harris: What or who have been your most important investing influences? Mohnish Pabrai: That’s an easy one. My important influences have been Warren Buffet and Charlie Munger. I was introduced to Warren through reading Lowenstein’s biography ‘The Making … Read More

George Soros: How Investors Can Stay Ahead Of The Game

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One of our favorite investing books here at The Acquirer’s Multiple is Soros on Soros by George Soros, It’s written in an interview-style narrative with Byron Wien, Managing Director at Morgan Stanley, and with German journalist Krisztina Koenen. There’s a great passage in the book in which Soros discusses his approach to risk-taking and how he stays ahead of the game. … Read More

What Helps or Hurts Investment Returns? Here’s a Ranking

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Here’s a great article by Barry Ritholz at Bloomberg in which he ranks the most important factors that drive portfolio returns. Here’s an excerpt from that article: What drives the returns of any investment portfolio? Specifically, from the moment someone starts saving for retirement, until the day they begin to take their required minimum distribution at age 70½, what are … Read More

Jamie Dimon: Investors Should Not Be Surprised By The Non-Linear Nature of Companies and Markets

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Jamie Dimon provides some great insights in his Annual Shareholder Letters at JPMorgan Chase. In his latest letter Dimon makes a great point regarding the non-linear nature of companies and markets. Here’s an excerpt from that letter: Volatility and rapidly moving markets should surprise no one. We are always prepared for volatility and rapidly moving markets – they should surprise … Read More

Philip Carret: All Stock Investors Are Speculators By Necessity

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One of the best books written on investing is The Art Of Speculation, by Philip Carret. There’s one passage in particular in which Carret illustrates how all stock investors are speculators by necessity. Here’s an excerpt from that book: It is unfortunate that the word “speculation” immediately suggests the word “stocks” to most people. When his neighbors gather at the … Read More