100-Baggers are the holy grail of investing. These are stocks that return $100 for every $1 invested and they’re extremely rare. However, the secret to capturing your next 100-Bagger can be found in a presentation that Mohnish Pabrai did with the folks at Google earlier this year. The answer came when … Read More
Here’s How Successful Investors Dampen Down Their Investing ‘Cocaine Brain’ – Pabrai, Spier
As investors we all know the excitement we feel when we come across what we think is an undervalued opportunity that seems to have been overlooked by most other investors. The feeling of exhilaration that we get is called “cocaine brain.” Neuroscientists have found that the prospect of making money stimulates the … Read More
21 Timeless Investing Lessons From Bruce Berkowitz
Bruce Berkowitz is the Founder and Chief Investment Officer of Fairholme Capital Management, and President and a Director of Fairholme Funds, Inc. In 2010 Berkowitz was named as the 2009 Domestic-Stock Fund Manager of the Year by Morningstar as well as the Domestic-Stock Fund Manager of the Decade (2000-2009), also by … Read More
Is It Better To Buy The Stock And Watch The Price Drop Or Not Act And Watch The Price Soar? – Daniel Kahneman
One of the most common predicaments facing investors is that they’ve analysed a stock, it meets with the investors criteria, and now it’s time to pull the trigger and buy the stock. But something happens, the investor ums and ahs and delays the decision to buy. Next thing you know three … Read More
8 Exceptional Investing Lessons That Have Stood The Test Of Time – Philip Fisher
One of the best investing books ever written is Common Stocks and Uncommon Profits by Philip Fisher. According to Forbes this book was the first investment book ever to make The New York Times bestseller list. As a testament to the book, on the cover is a quote by Warren Buffett saying – … Read More
4 Of The Greatest Investing Lessons From Peter Lynch
One of my favorite Peter Lynch interviews is one he did with PBS. Lynch ran Fidelity’s Magellan Fund for thirteen years (1977-1990). In that period Lynch he averaged a 29.2% annual return, consistently more than doubling the S&P 500 market index and making it the best performing mutual fund in the … Read More
Great Investors Focus On Absolute-Performance Rather Than Relative-Performance – Seth Klarman
Earlier this month The Washington Post published an article titled – Warren Buffett’s $100 Billion Problem. The article was reporting on the $100 Billion that Berkshire has accumulated in cash over the years, stating: Warren Buffett celebrated his 87th birthday a few days ago, but the bigger number in his life … Read More
20 Timeless Investing Lessons From Joel Greenblatt
One of our favorite investors here at The Acquirer’s Multiple is Joel Greenblatt. Greenblatt is the Managing Partner of Gotham Capital, a hedge fund that he founded in 1985, and a Managing Principal of Gotham Asset Management. He is also the author of four books, You Can Be A Stock … Read More
What Should You Do With Under-Performing Stocks That You’ve Held For A Long Time? – Daniel Kahneman
One of the greatest challenges facing all investors is what to do with those under-performing stocks that have been sitting in your portfolio for a long time. Most investors prefer to wait until the under-performing stock gets back to its original purchase price, then they’ll sell it. The problem is … Read More
Dividend Yield – Investors May Be The Victims Of Pathetic Manipulation – Seth Klarman
Recently I had a conversation with a close friend of mine regarding one of his stocks. He told me that one particular stock was performing so badly that if he sold his current position he would stand to lose $20,000. I asked him why he initially bought the stock and … Read More
What’s An Investor Supposed To Do Today? Trennert & Zweig – WealthTrack
It’s not surprising that some investors are finding it very difficult in today’s market with the number of index funds surging, fewer publicly traded stocks available, and computer dominated trading. One of the most staggering statistics (below) reflecting current market conditions is that there are now more benchmark indexes than … Read More
Value Investing Woes Reflect Anxiety Among Equity Buyers
A recent article at the Financial Times attempts to explain the present level of anxiety amongst equity buyers using the current value investing environment as an example: Here’s an excerpt from that article: It has become commonplace to ask how stock markets can be rallying when the world is confronted … Read More
Here’s A Couple Of ‘Tricks’ Greenblatt Teaches His MBA Students To Assess Potential Investments
One of the biggest problems facing investors is trying to figure out a good starting point for assessing potential investments. Additionally, another problem we face is trying to make comparisons between potential investments to figure out which one is the better investment. Some of the best answers to these challenges … Read More
Here’s What Great Fund Managers Do When There Are Few Opportunities – Seth Klarman
According to a recent article at Bloomberg, Seth Klarman the head of Baupost is returning capital to his investors because he can’t find sufficient opportunities in the market today. This is not the first time Baupost has returned capital to its investors. The hedge fund did the same thing in … Read More
25 Timeless Investing Lessons From Charles Munger
One of our favorite investors here at The Acquirer’s Multiple is Charles Munger. Over the years Munger has provided us with a number of investing gems and one of the best sources of Munger’s quotes can be found in the book – Poor Charlie’s Almanack. While there are hundreds of Mungerisms … Read More
Is Value Investing Broken? – Morningstar
Just finished reading a great article titled – Is Value Investing Broken? – at Morningstar. The article demonstrates that while a value investing strategy can be difficult to stick to at times, it’s still a commonsense strategy that outperforms over time, based on the principle: cheap stuff outperforms expensive stuff … Read More
Howard Marks Latest Memo: Yet Again?
Howard Marks has recently released his latest memo titled – Yet Again? In this memo Marks reflects on the response he received to his previous memo titled – There They Go Again…Again. Marks wrote the following about the response he received to his last memo: “There They Go Again . … Read More
How Can We Learn To Follow In The Footsteps of Buffett and Munger? – Mohnish Pabrai
One of our favorite investors here at The Acquirer’s Multiple is Mohnish Pabrai. Pabrai is the Founder and Managing Partner of the Pabrai Investments Funds, the Founder and CEO of Dhandho Funds, and the author of The Dhandho Investor and Mosaic: Perspectives on Investing. One of the best Pabrai interviews … Read More
The Definitive Guide On Identifying Companies With An Economic Moat – Warren Buffett
With so much talk about a company’s economic moat it’s important to recognize how to clearly identify a moat, understand how wide it is, and figure out how long it will remain in place. One of the best papers ever written on the subject is Michael Mauboussin’s – Measuring the … Read More
Even The Most Intelligent Investors Succumb To Human Frailty – Including Ben Graham
I’ve just finished a great little book called – Benjamin Graham: The Memoirs of the Dean of Wall Street. It’s a fantastic read about the father of value investing, Ben Graham. While a lot has been written about the investing insights of Graham it was interesting to read the following passage … Read More