Here’s a great video with Howard Marks at Bloomberg. During the interview Marks says: “I think, as it often does, the market has flipped from being all good to all bad. Prior to October the 4th it was ignoring some possible problem sites and now it’s obsessing about them. That’s the way it goes.” You can watch the full video … Read More
Aswath Damodaran: Investors Have Three Choices When It Comes To Investing In Marijuana Businesses
Aswath Damodaran has just released his latest video in which he discusses the businesses that are involved in the marijuana market and the three choices that investors have when assessing their investment choices in this space saying: “If the marijuana market is likely to grow strongly, it should be a good market to operate a business in, right? Not all … Read More
Mohnish Pabrai: The Ten Commandments of Investment Management
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
Mark Sellers: So You Want To Be The Next Warren Buffett
Some years ago hedge fund manager Mark Sellers of Sellers Capital gave a great speech to a group of Harvard MBA students titled – So You Want To Be The Next Warren Buffett? How’s Your Writing? Sellers did not mince his words when he discussed the difficulty of becoming a great investor that can compound returns at 20% per year saying: “I … Read More
Stanley Druckenmiller: Algos Have Taken The Rhythm Out Of The Market
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
T Boone Pickens – 6 Timeless Lessons For Investors
Earlier this year T Boone Pickens wrote a great article at Forbes called – Ninety Years Of Lessons Learned: T. Boone Pickens’ Letter To The Class Of 2018. In it he provided six key lessons, or what he calls ‘Booneisms’, which are very useful in the world of investing. Here’s an excerpt from that article: I’m often asked for my … Read More
Cliff Asness: What Type Of Diversification Works Best During The Worst Of Times
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
John Rogers: How To Beat The Index By 100 Basis Points Every Year
Here’s a great interview with John Rogers and Charlie Bobrinskoy from Ariel Investments. The Ariel portfolio is currently valued at $8.91 Billion, and has been regularly beating the index by 100 basis points per year. So how do they do it? Here’s an excerpt from the interview: Don’t you hear all the time that “you’re wasting your time researching individual stocks. … Read More
Howard Marks: Latest Memo – The Seven Worst Words In The World
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
Peter Lynch: Even The Great Investors Need A Little Bit Of Luck
Here’s a great interview with value investing legend Peter Lynch in which he discusses how he made his first stock pick a 10-Bagger. This illustrates the point that all investors, even the great ones, need a little bit of luck, in terms of timing. Here’s an excerpt from that interview: Q What was your first stock? A Well, when I … Read More
Howard Marks: 6 Classic Investment Mistakes That Every Investor Should Avoid
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
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
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
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
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
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
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
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
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
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