General Thoughts

A Few Miscellaneous Thoughts on Investment Process

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As I’ve mentioned before, I spend the vast majority of my time reading. My office is filled with piles of papers, notebooks, and annual reports. I have two computer monitors (yes, I know some value guys have no monitors on their desk… something I admire, but I find the internet’s resources too valuable to ignore… for example, I can access 15+ years’ worth of annual reports in seconds, that’s something Schloss, Graham, Buffett would have readily used if they grew […]

General Thoughts

Thank You to Readers, Clients, Other Investors for a Great 2013

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I’ve really enjoyed writing this blog over the past year. I didn’t expect all of the great things that have since occurred when I started writing this blog just over a year ago. I started the blog as an outlet for my own thoughts and ideas on investing, but really had no idea where it would go. The launch of Base Hit Investing coincided with the beginnings of my investment management firm Saber Capital Management, LLC. I’ve since had the […]

Case Studies

A Few Key Links From 2013

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It’s the last day of the year, and everywhere you look are various “Top 10 lists”, “2013 Best Posts”, etc… Despite the title, this post is not such a list… I thought I would re-post some links to just a few things that I have read recently that I found interesting. It is more coincidence that I’m posting this on the last day of the year, and this is far from a comprehensive list of valuable things I’ve read this […]

General Thoughts

Barnes and Noble and a Car Wash Business

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I’ve been getting a lot of feedback on the Barnes and Noble investment thesis. The feedback can basically be summed up as: “Yes, I agree that the price is cheap relative to bookstore profits, but what about the competition? Isn’t B&N a melting ice cube?” Not All Brick and Mortar Retailers Will Go Bankrupt I’ve I said in numerous email replies and comments to this general question, yes—B&N will continue to face fierce competition from Amazon, Apple, and other competitors. […]

Case Studies

A Few Thoughts on Buffett and Great Banks

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I wrote a post about screening for quality bank stocks and another one here about Wells Fargo vs Cheap Community Banks and thought I’d post on some other comments I have here. Some of these thought might sound contradictory (everyone wants to separate stocks into categories based on quality/earnings and cheapness/assets). It’s not black and white, and all we’re really trying to do is figure out what something is worth and pay less for it. As Alice Schroeder has said, […]

Case Studies

Wells Fargo vs. Small Community Banks

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Charlie Munger once said that he compares every possible investment to Wells Fargo… Why buy company X if it’s not as good/cheap as WFC?  For weeks I’ve been slowly and steadily working my way through hundreds of small community bank stock filings looking for bargains. A good friend of mine lately has been the trusty old FDIC website where you can find current/historical financials on banks to your heart’s content… But after a few more hours of sifting through Call Reports […]

Case Studies

Bill Ackman On His Recent Mistakes

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Bill Ackman is like the New York Yankees, a team that many love to see lose. Ackman is a star fund manager with an outstanding long term track record. He has also been the star in an interesting theater over the past year thanks to two very public investments that did not go his way. I’ve been somewhat surprised by the way that Ackman is portrayed in the public. He has developed into a sort of “hedge fund public enemy number […]

General Thoughts

Value Investing: Luck vs Skill Part 1

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I received this interesting comment from a reader and thought I might write a post or two on this topic: “…There is one very important writer/thinker you do not mention in your site but whom you might want to pay attention to–the Nobel prize winner Daniel Kahneman. After reading him, you will recognize and appreciate the role of luck, the unpredictability of stocks/markets, and that very few people, if any, can beat the market over the long term. Sure you […]

Case Studies

Thinking Differently: The Most Important Contrarian Behavior

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“I skate to where the puck is going to be, not where it has been.”  – Wayne Gretzky One of the most important skills that you can develop as an investor is the ability to think differently. This is a broad topic with many interpretations. I often talk about thinking differently here at BHI. When it comes to general philosophy or “investment theory” (as opposed to thinking about individual stock investments), I spend more time thinking about this topic than […]

General Thoughts

Can George Soros’ Methods Be Replicated?

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I received this comment on one of my recent posts. The George Soros question got me thinking about how interesting the different philosophies are. Soros had an incredible career, but is it possible to replicate his general strategy? Here is the basic comment from the reader: Your posts have given me a great deal of information.  What is your opinion on George Soros’ theory of reflexivity? I was reading Seth Klarman’s Margin of Safety, and it mentioned how in rare […]