Investment Quotes

Human Behavior and Stocks Selling Under $1

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Preston Athey runs the T. Rowe Price Small Cap Value Fund. He’s produced around 12% annual returns for the past 22 years, making him one of the top mutual fund managers in his category. I would imagine it’s hard to run $8 billion (the size of his fund), and have to invest in small caps only, so although 12% isn’t shooting the lights out, given his mandate and the constraints that come from the size of his fund, I’d say […]

How to Improve Results

Think Differently: Buying Cheap Stocks is Difficult

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“If you want to have a better performance than the crowd, you have to do things differently from the crowd.” –John Templeton The above quote is one of my all time favorites. It’s a ubiquitous concept: we hear it all the time…. buy what others are selling, buy fear, sell euphoria, etc… The quote represents obvious importance. But the interesting thing is that although it’s an oft used phrase, it is practiced much less often than you might realize. Taking a […]

Investment Philosophy

Steven Romick Interview

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Steven Romick is an outstanding investor with a long history of beating the market in the FPA Crescent Fund. Romick is an absolute value investor with a broad investment mandate. He invests in a variety of asset classes including stocks and bonds, but also alternative assets such as farmland and real estate. Romick is a smart guy, and you can learn a lot by reading his letters and watching his interviews. He’s different from most value investors because he willing […]

General Thoughts

Investing vs Speculating

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“Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook.” –Ben Graham, Intelligent Investor I wrote this post on why I bought MSFT and AAPL last week and I reposted it over at Seeking Alpha where I received around 60 comments with various opinions, mostly having to do with AAPL. I’ve noticed that Apple is one of those stocks that really ignites emotion from people. This chart can cause a lot of frustration for short term oriented shareholders: […]

Investment Quotes

Buffett on Farmland & Exxon Mobil vs. Gold

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Gold and silver prices are crashing this morning and I was reading some news on my Twitter feed I noticed someone link to a post at Ivanhoff.com called Warren Buffett on Gold. Ivanhoff had a nice summary from Buffett’s 2011 Berkshire Shareholder Letter that contains one of my favorite description of gold’s value and how to think about the investment case for the yellow metal. Here is Buffett on how you should think about gold: “Today the world’s gold stock […]

Ben Graham

Invert, Always Invert: More on Thinking Differently

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“Invert, Always Invert.” -Carl Gustav Jacob Jacobi, 19th century mathematician, using the phrase to describe how he thought many problems in math could be solved by looking at the inverse. Charlie Munger often uses this same quote to express how investors can likewise benefit by looking at the inverse, or opposite, of what others are looking at.  Yesterday I wrote a post on Buffett and how he achieved 50% returns, and “guaranteed” that he could replicate those returns on a […]

General Thoughts

How Buffett Made 50% Per Year? By Thinking Differently…

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A few years ago at the Berkshire Hathaway Annual Meeting, Warren Buffett said something very interesting. He said that he personally knows of a half dozen or so people who could make 50% per year managing a relatively small amount of money. I came across a reference to this comment a few days ago and I began thinking to myself: I wonder who those 6 people are? But even though it’s interesting to consider, there are more important takeaway’s from […]

Investment Philosophy

Focus Your Time on Valuation, Not Prediction

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“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 […]

Investment Quotes

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

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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 […]

General Thoughts

On the Importance of Long Term Thinking

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One of the things I’ve been thinking about over the past few days is how important it is as an investor to engage in patient, long-term thinking. Most of us are either individual investors managing our own portfolios or maybe small professional managers like myself with a few like minded partners/investors. The edge we have over larger and better equipped institutions cannot be understated. Our edge lies in our ability to be able to think, and more importantly act, with […]