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 … Read More
Stanley Druckenmiller: My Biggest Mistake And What I Learned From It
Here’s a great interview with Stanley Druckenmiller at the Lost Tree Club in 2015. While the entire interview is a must read for all investors, there’s one answer from Druckenmiller that requires closer attention. Ken Langone asks Druckenmiller: KL: You mentioned some of your biggest winners in your career. What is … Read More
George Soros: How Investors Can Stay Ahead Of The Game
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 … Read More
Mohnish Pabrai: The Yellowstone Factor In Investing
Some years ago Mohnish Pabrai wrote a great piece about valuing investments called – The Yellowstone Factor. In the article Pabrai provided some great insights on the importance of not relying on absolute and precise mathematics in investing saying: “Investing is not a discipline based on absolutes or precise mathematics. There simply … Read More
Peter Lynch Protege Joel Tillinghast: How To Avoid Value Traps
One of our favorite investing books here at The Acquirer’s Multiple is – Big Money Thinks Small, by Joel Tillinghast. Tillinghast is a protege of value investing legend Peter Lynch. In the Foreword of the book Lynch provides glowing praise for Tillinghast saying: “I have been an active stock picker for … Read More
T. Rowe Price: Value Investing Is Not Dead
Here’s a great article by Sebastien Mallet, Portfolio Manager at T. Rowe Price on the future of value investing saying: “So getting back to the original question, “Is value investing dead?”: The answer is a firm no. The only caveat to that statement is that in this current environment, where everyone … Read More
Li Lu: “The Market Is A Mechanism That Discovers Your Weaknesses. Any Fault/Defect You Have Will Be Magnified Infinitely, To The Point Of Complete Destruction.”
One of our favorite investors to follow here at The Acquirer’s Multiple is Li Lu, Founder and Chairman of Himalaya Capital. In 2015 Li Lu did a value investing lecture at Peking University titled – The Prospect of Value Investing in China, in which he provided a number of fantastic value … Read More
Howard Marks: The Route To Superior Performance Will Continue To Be Humans With Superior Insight
Howard Marks has just released his latest memo titled – Investing Without People. Marks also released a short video (below) which summarizes the memo saying: “If the day comes when intelligent machines run all the money, won’t they all see everything the same? Won’t they reach the same conclusions? Design … Read More
What Helps or Hurts Investment Returns? Here’s a Ranking
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 which could be done together with … Read More
Guy Spier: What Lunch With Warren Buffett Taught Me About Investing And Life
Here’s a great article by Guy Spier at MarketWatch in which he discusses what his lunch with Warren Buffett taught him about investing and life. Here’s an excerpt from that article: It’s been 10 years since I and my friend, investor Mohnish Pabrai, won the annual Glide Foundation charity auction … Read More
Jamie Dimon: Investors Should Not Be Surprised By The Non-Linear Nature of Companies and Markets
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 … Read More
Why A Do-Nothing Approach To Investing Is Often The Right Way To Go
Here’s a great article at The Globe And Mail which illustrates how investors are hurting their returns by actively over trading in stocks saying: “Trading is clearly the enemy of superior returns on a before-tax basis. This is doubly true in the after-tax world in which we all live.” Here’s … Read More
Philip Carret: All Stock Investors Are Speculators By Necessity
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 … Read More
Ray Dalio: “Think About How To Rotate Your Portfolio To Buy That Which Is Cheap And Sell That Which Is Expensive”
Last week Ray Dalio did a question and answer session with some folks on Reddit where he shared a number of valuable investing insights. Dalio started the conversation with the following message: “I’m Ray Dalio—founder of Bridgewater Associates and author of Principles. This is my first AMA. Ask me anything!” My … Read More
James Montier: You Can Turn Behavioral Biases Into An Advantage Using A Valuation-Based Framework
We’ve just been listening to a great interview with James Montier on Meb Faber’s podcast. During the interview Montier provides some great insights to help investors protect themselves from their behavioral biases. Montier says that you can actually turn behavioral biases, like anchoring, into an advantage using a valuation-based framework. … Read More
Ed Thorp: The Importance Of Having An Edge In Investing
Here’s some great investing insights from Ed Thorp, author of Beat the Dealer and A Man for All Markets, from his interview with Jack Schwager in his book – Hedge Fund Market Wizards. During the interview, Thorp explained the importance of having an edge in investing and matching your skill set … Read More
Prem Watsa: If You Get Two Out Of Three Right, You Will Have One Of The Best Track Records
Here’s a great recent interview with Prem Watsa discussing investing with Bloomberg’s Amanda Lang on “What’d You Miss?”. During the interview Watsa shares some great insights on what makes a great investor. Here’s an excerpt from that interview: Amanda Lang: Have there been investments that you regret? Prem Watsa: Oh! I … Read More
Seth Klarman Protege David Abrams Says “Value Investing Is The E = mc² Of Money And Investing”
One of our favorite investors to follow here at The Acquirer’s Multiple is Seth Klarman’s protege David Abrams. Abrams typically shuns the public limelight so it’s difficult to find interviews where he shares his investing strategy. The WSJ did a great story on him back in 2014 titled – Hedge-Fund World’s … Read More
Nassim Taleb: How Frequent The Profit Is Irrelevant; It Is The Magnitude Of The Outcome That Counts
Here’s a great investing lesson by Nassim Taleb from his book Fooled by Randomness. Similarly to Michael Mauboussin in this article, Taleb makes the point that it’s not how frequently you profit from your investments that important, it’s the magnitude of the outcome that counts. Here’s an excerpt from the book: … Read More
Michael Mauboussin: The Babe Ruth Effect Generates More Successful Returns
Here’s a great lesson from Michael Mauboussin’s book – More Than You Know. Mauboussin highlights the point that when it comes to successful investing it’s not about the frequency of correctness that matters in stock picking, it’s the magnitude of correctness that matters. This is called the Babe Ruth Effect. Here’s an excerpt from … Read More