Jamie Catherwood at O’Shaughnessy Asset Management recently wrote a comprehensive piece on why the momentum factor will continue to deliver outperformance saying: There are no certainties in investing, but one can be very confident that human nature will not be changing any time soon. Since shares first traded on the … Read More
Warren Buffett: There’s No Easier Game Than Stocks
Here’s a great excerpt from an interview that Warren Buffett did in India some years ago. Buffett is discussing how there is no easier game than stocks, but investors turn that fundamental advantage into a disadvantage saying: If you look at the typical stock on the New York Stock Exchange, … Read More
Stanley Druckenmiller: Never, Ever Invest In The Present
Here’s a great except from Stanley Druckenmiller’s 2015 Speech at the Lost Tree Club. Druckenmiller provides some great insights into why investors should never, ever invest in the present, saying: Now, I told you it was kind of dumb luck how I fell into this. Ken Langone knows my first … Read More
Joel Greenblatt: Investors Should Search For Companies That Achieve A High Return On Capital
Here’s a great excerpt from Joel Greenblatt’s book – The Little Book That Beats The Market, in which he discusses the importance of finding businesses that can achieve a high return on capital, saying: But here’s the thing. If capitalism is such a tough system, how does the magic formula … Read More
Warren Buffett: Investing Is Much Like Reporting – Writing The Right Story
Here’s a great excerpt from an interview that Warren Buffett did with BizNews in 2017 in which he illustrates how investing is much like reporting. Buffett was asked the following question: When you’re doing these analyses, then and now, do you have computers that help you, or how did you … Read More
Michael Burry: The Best Way For Investors To Minimize Risk Is…
Here’s a great excerpt from Michael Burry’s 2001 Scion Capital Shareholder Letter in which he discusses the best way for investors to minimize risk saying: Although an outsider might think the goal of prevailing modern investment practice to be one of mediocrity, there in fact remains much more competition to … Read More
Bruce Greenwald: The 3 Attributes That Make a Truly Great Investor
We’ve just been reading through the Winter 2009 issue of the Graham and Doddsville Newsletter which includes a great passage by Bruce Greenwald on the three attributes that make a truly great investor saying: Bruce Greenwald: There are three things that Buffett is good at—and if anyone is good at … Read More
Mohnish Pabrai: Great Stock Selection Starts With Rejecting New Investment Opportunities For The Flimsiest Possible Reasons
Here’s a great interview with Mohnish Pabrai and The London Business School. During the interview Pabrai discusses his stock selection process, which he says starts with getting rid of new investment opportunities for the flimsiest possible reason. Here’s an excerpt from the interview: Mohnish Pabrai: I’ll give it a shot … Read More
Seth Klarman Protégé – David Abrams – Investors Need To Use A Multi-Path Approach To Business Valuation And Analysis
We’ve just been listening to a great interview with Seth Klarman’s protégé David Abrams on the Value Investing With Legends podcast in which Abrams discusses why investors need to use a multi-path approach to business valuation and analysis. Here’s an extract from the interview: David Abrams: The first question we … Read More
Nassim Taleb – Just Because An Investor Makes Money Doesn’t Mean They’re Good
Here’s a great extract from Nassim Taleb’s book – Fooled By Randomness in which he illustrates how some investors are perceived as being ‘great’, when in actual fact they simply started investing at the best possible moment. But as time moves on it becomes apparent that their ‘strategies’ are flawed. … Read More
(Ep.15) The Acquirers Podcast: Bill Brewster – Brewster’s Millions, A Masterclass In Business Analysis
Summary In this episode of The Acquirer’s Podcast Tobias chats with Bill Brewster, who runs Sullimar Capital Group. During the interview Bill provided some great business analysis into a number of companies including AB InBev, GE, Netflix, and Ubiquiti. He also discusses: – How He Went From The Flooring Business … Read More
Michael Burry: Don’t Try To Dig Your Way Out
Following is an excerpt from Michael Burry’s MSN Case Studies in which he provides some great advice for investors who are tempted to take increased risks in order to dig themselves out of a hole. A key phenomenon driving the recent stock market advance is the need for so many fund … Read More
Walter Schloss: Criteria For Liquidations Where Money Is Held By A Company
Following is a May 1952 memo written by Walter Schloss which outlines his criteria for liquidations where money is held by a company: You can find the original document here: Walter Schloss: Criteria For Liquidations Where Money Is Held By Company
(Ep.14) The Acquirers Podcast: Perth Tolle – Freedom Weight, Life + Liberty In Emerging Markets
Summary In this episode of The Acquirer’s Podcast Tobias chats with Perth Tolle, who is the Founder of Life + Liberty Indexes and the Freedom 100 Emerging Markets Index. Perth provides some great insights into how investors can find opportunities in emerging markets utilizing the human freedom index. Other topics … Read More
Seth Klarman: “Value Investing Is At Its Core The Marriage Of A Contrarian Streak And A Calculator.”
We’ve just been re-reading Michael Mauboussin’s book – The Success Equation. There’s a great passage in the book with discusses investor psychology, and some of the findings of Daniel Kahneman and Amos Tversky. There’s also an great explanation of one of Seth Klarman’s most famous investing quotes: “Value investing is … Read More
Investors Must Continue To Challenge Their Long Held Beliefs
During his recent interview with Tobias chats with Jim O’Shaughnessy, best selling author and Co-Chief Investment Officer at O’Shaughnessy Asset Management (OSAM), discusses why investors must continue to challenge their long held beliefs. Here’s an except from the interview: Jim O’Shaughnessy: This is a classic example of a practice of … Read More
Mohnish Pabrai – Investors Can Take Advantage When Markets Get Confused Between Risk And Uncertainty
At his recent presentation at Trinity College in Dublin, Mohnish Pabrai explained how investors can take advantage when markets get confused between risk and uncertainty, saying: If you have a business which exhibits very high uncertainty then that business generally will get very extreme kind of valuations in a auction … Read More
Investors Should Beware When They Start To See ‘Information Cascades’
During his recent interview with Tobias chats with Jim O’Shaughnessy, best selling author and Co-Chief Investment Officer at O’Shaughnessy Asset Management (OSAM), discusses why investors should beware when they start to see ‘information cascades’. Here’s an except from the interview: Jim O’Shaughnessy: The stock market is a complex adaptive system … Read More
As Long As Human Beings Price Securities, There Will Always Be Investment Opportunities
During his recent interview with Tobias chats with Jim O’Shaughnessy, best selling author and Co-Chief Investment Officer at O’Shaughnessy Asset Management (OSAM), discusses why there will always be investment opportunities as long as human beings price securities. Here’s an except from the interview: Jim O’Shaughnessy: People used to say to … Read More
The SMID-Cap Universe Provides Greater Opportunities Over Large And Small Caps – Here’s Why
During his recent interview with Tobias, Ben Claremon, the Principal and Portfolio Manager at Cove Street Capital outlines the reasons why he believes the SMID-Cap Universe provides greater opportunities over Large and Small Caps. Here’s an excerpt from the interview: Tobias Carlisle: You and I were at a conference recently … Read More