The Behavior of Stock Market Manias

Posted on 29 CommentsPosted in Books, Case Studies

I’ve heard more and more commentary/concern about the level of the overall market lately. With the market relentlessly marching to new all-time highs just about every day, I’ve even begun to hear the word “bubble” being used. While I certainly don’t think the market overall is cheap, and while I certainly believe it’s very possible that a bear market could occur at any time, we are definitely not in a bubble. Anyone who thinks that the current market is reaching […]

The Misunderstanding of Peter Lynch’s Investment Style

Posted on 11 CommentsPosted in Books, General Thoughts

“I’ve never said, ‘If you go to a mall, see a Starbucks and say it’s good coffee, you should call Fidelity brokerage and buy the stock.’” – Peter Lynch I saw an article in Monday’s Wall Street Journal on Peter Lynch. Basically, it was a very brief piece where Lynch basically says that people are misinterpreting his advice to “buy what you know”. I like Peter Lynch and I like his writing. Although the first book I ever read on value […]

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 Lesser Known Gem by Ben Graham

Posted on 16 CommentsPosted in Ben Graham, Books, Education, How to Improve Results, Investment Philosophy, Superinvestors

Ben Graham is known largely for writing two of the most cited books in the field of value investing. Of course, in addition to being an outstanding writer and educator, he was a proficient practitioner of the investment field as well—a dual distinction that is extremely rare. In other words, he didn’t just preach, he practiced as well. And he did both at a very high level. His investment record was excellent—he averaged gross returns around 20% per year in […]

How Warren Buffett Thinks About Risk

Posted on 27 CommentsPosted in Books, How to Improve Results, Investment Philosophy, Superinvestors, Warren Buffett

“Rule #1: Don’t Lose Money….” The best book I’ve ever read on Buffett is Alice Schroeder’s Snowball. I remember picking up my copy about four years ago and literally not being able to put it down. I read it for hours at a time, all the while marking pages and circling things… and I often reference certain parts of the book when thinking about investments. The book goes much deeper into Buffett’s thought process than most of the other Buffett […]

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

Posted on 16 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 […]