– Did you make a mistake? – Have the fundamentals deteriorated? – Has the stock risen too far above its intrinsic value? – Is there something better you can do with the money? – Do you have too much money in one stock? Pat Dorsey – Five Rules for Successful Stock Investing.
https://embed-ssl.ted.com/talks/lang/en/knut_haanaes_two_reasons_companies_fail_and_how_to_avoid_them.html Why companies fails? This is a hard question to answer. In this TED video Knut Haanaes explain two critical concepts, exploration and explotation, to avoid companies to fail. Exploration: coming up with what’s new, search, discover, new products, changing our frontiers. Exploration is risky. Long term perspective for companies. On the other hand, Explotation: takingContinue reading “Knut Haanaes: Two reasons companies fail — and how to avoid them”
The great majority of institutional investors are plagued with a short-term, relative-performance orientation and lack the long-term perspective that retirement and endowment funds deserve. [Taking about institutional investors] Hundreds of billions of other people’s hard-earned dollars are routinely whipped from investment to investment based on little or no in-deph research or analysis. You probably wouldContinue reading “Notes Chapter 3: Margin of Safety”
What is good for Wall Street is not necessarily good for investors, and vice versa. Wall Street firms perform important functions for our economy: they raise capital for expanding businesses and (sometimes) provide liquidty to markets. Up-front fees clearly create a bias toward frequent, and not necessarily profitable, transactions. Investors even remotely tempted toContinue reading “Notes Chapter 2: Margin of Safety”
Walter Schloss was, together with Warren Buffett, Benjamin Graham’s students at Columbia University. Sometimes forgotten value investor with an amazing performance (see tables below). Today I discover a Walter Schloss called “Factors needed to make money in the stock markets” that he wrote in 1994, I believe these are his principles for make money. Must read for allContinue reading “Factors needed to make money in the stock markets”
Common Sense Investing i. Know what you own. ii. It is futile to predict the economy, interest rates, and the stock market. iii. You have plenty of time. iv. The ten most dangerous things people say about stock prices: If it has gone down this much already, it can’t go much lower. If it hasContinue reading “Lynch Law”
We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.Continue reading “Reading Warren Buffett’s Letters”
Seth Klarman is one of the best-known value investor. He run a company called The Baupost Group for 33 years. In this list published last January the assets under management are $27 bn. I started his book, “Margin of Safety”, and I wanna to share my notes here, just to re-read it in the future. ChapterContinue reading “Notes: Margin of Safety”