David Einhorn and Reasons Why Widely Followed Stocks Get Mispriced

Posted on 10 CommentsPosted in Books, Case Studies, Investment Philosophy

Over the weekend I was reading David Einhorn’s book Fooling Some of the People All of the Time. I’ve had it on my bookshelf for some time, and it has always taken a back seat to other books until I decided to pick it up recently. It’s an entertaining read, basically recounting his short thesis on Allied Capital in great detail. It is a good book because it provides a glimpse into the significant amount of research and due diligence […]

A 31-Year Old Buffett Discusses the Stock Market

Posted on 6 CommentsPosted in Warren Buffett

I came across this video that I’ve never seen before. It’s a video of a young 31-year old Warren Buffett giving an interview to a journalist about the stock market decline that occurred in the first half of 1962: Buffett’s comment at the very beginning of the video regarding President Kennedy’s “actions on steel” referred to this press conference on April 16, 1962. Basically, JFK announced that the Department of Justice was opening an investigation into the pricing strategies of […]

Wells Fargo and the Incredible Predictability of Deposit Growth

Posted on 34 CommentsPosted in Industry-Banks, Investment Ideas & Company Research

“In the end, banking is a very good business unless you do dumb things.” – Warren Buffett Buffett has been investing in bank stocks since the 1950’s, and I think one of the things he probably likes most about banking is the predictability of deposit growth. As he says, if you don’t do dumb things—if you stick to taking in deposits and lending them out, you’ll mint money. All the money center banks reported earnings a couple weeks ago. In […]