The Market Hit an All Time High, So Now What?

Posted on Leave a commentPosted in General Thoughts, Overall Stock Market, Portfolio Management

Happy Easter! I’m spending time at the North Carolina coast with my wife this weekend. We’re waiting for family to arrive from out of town, and we’re currently spending some time relaxing and reading. I got some good reading in yesterday and came across this excellent article by Toby Carlisle at Greenbackd about the state of the overall market and thought I’d share thoughts… Focus on Stocks, not Markets I don’t usually pay a significant amount of attention to where […]

Update on Business

Posted on Leave a commentPosted in General Thoughts, Saber Capital Management

I’ve been very busy over the last week as I’ve been working on the formal launch of my investment firm. I started Saber Capital Management, LLC last fall as a way to manage client capital using the same methods I use for my own investing. I use separately managed accounts for maximum transparency for the client, and we have a $50,000 minimum initial investment. We are beginning with a number of accounts on Monday, which I chose as the formal […]

Some Thoughts on My Investment Approach

Posted on 4 CommentsPosted in Ben Graham, Investment Philosophy, Joel Greenblatt, Superinvestors, Walter Schloss, Warren Buffett

I’ve been having numerous email conversations with readers about my investment philosophy and overall approach to investing. To understand my investment philosophy, you have to first understand the basic investment principles from the four investors who I’ve learned the most from: Ben Graham, Walter Schloss, Joel Greenblatt, and Warren Buffett. My investment approach is a confluence of ideas that primarily stem from those four investors. Graham is the foundation. Schloss and Greenblatt add important ideas and strategies to Graham’s foundation. Buffett […]

Focus Your Time on Valuation, Not Prediction

Posted on Leave a commentPosted in Investment Philosophy, Investment Quotes

“An astute investor whose abilities we highly respect has observed that stock prices are much more volatile than the businesses whose ownership they represent. Thus, well established profitable businesses tend to be stable, consistent, even surprisingly predictable, and are capable of withstanding periods of adversity without lasting damage. In contrast, stock prices are uncertain, variable, capricious, unpredictable and highly responsive to short term transient influences. It is ironic that so many investors devote so much effort to the exceptionally demanding challenge of predicting these volatile […]

Is Mila Kunis John D. Rockefeller’s Modern Day Shoeshiner?

Posted on Leave a commentPosted in General Thoughts

CNBC has one goal: viewers. They don’t care if they bring value to their viewers as long as their viewers continue to watch. I’m talking about the network itself. I’m not saying the people there don’t want to help their viewers, but their job is to get people to watch, not improve investment results. I believe Jim Cramer, at least in part, wants to help the small do-it-yourself investors, even though I think his show and his methods do nothing […]

Mohnish Pabrai: Here’s Why Buffett Bought Coke (KO) in 1987

Posted on 18 CommentsPosted in Books, Get Better by Reading, Mohnish Pabrai, Superinvestors, Warren Buffett

I was reading a passage from Mohnish Pabrai‘s book Mosaic: Perspectives on Investing. I love reading Pabrai’s thoughts and ideas whenever I can. He’s one of the greatest investors of the last 15 years, establishing a track record that has significantly outperformed the S&P 500, including a remarkable run from 1999-2007 when he averaged around 30% per year. One reason I like Pabrai is because he uses simple logic to explain his investment process. We’re big fans of simplicity here […]

Warren Buffett on How He’d Invest Small Sums of Money

Posted on Leave a commentPosted in Portfolio Management, Superinvestors, Warren Buffett

Warren Buffett has spent the last few decades looking to buy either entire businesses, or major positions in large cap stocks of great businesses. He looks to buy these businesses at low prices of course, but often times he pays a price that leave many value investors scratching their heads (i.e. paying over 20 times earnings for Heinz, and 20% more than the stock’s all time high). Much of the reasoning behind these types of investments has to do with […]

Video of 92-Year Old Walter Schloss Discussing his Investment Philosophy

Posted on Leave a commentPosted in Investment Quotes, Superinvestors, Walter Schloss

I was listening to a video on Walter Schloss last night. It was a Q&A with Schloss himself at the Ben Graham Centre for Value Investing at the University of Western Ontario. As some readers have probably noticed, I’m a big fan of Walter Schloss, who’s one of the greatest investors of all time. Schloss passed away last year at the age of 96, and this video was taken 5 years ago when Schloss was 92. Schloss comes off as […]

Warren Buffett Letter on Walter Schloss

Posted on Leave a commentPosted in Motivational, Superinvestors, Walter Schloss, Warren Buffett

I came across a link today at Above Average Odds (a great value investing blog by the way) that I found interesting. It was a letter (actually two separate letters) that Warren Buffett wrote to his investment group regarding his friend Walter Schloss. I am a huge follower of Walter Schloss (and needless to say, Buffett as well). Schloss’ investment style is one that I try to emulate in my own investing, and it’s one that I feel most individual investors […]

To Arbitrage, or Not to Arbitrage

Posted on 4 CommentsPosted in General Thoughts, Investment Philosophy, Portfolio Management, Shareholder Letters & Reports, Superinvestors, Warren Buffett

I just spent all afternoon reading through all of Warren Buffett’s original partnership letters. These are the letters that he wrote to his investors when he was managing his private partnership from 1956-1969 prior to taking control of Berkshire Hathaway. I’ve read through these letters numerous times, and I recommend them to anyone who is serious about truly understanding the methods of Buffett. A while back I printed them and bound them so I have them collected in one place […]