A Few More General Thoughts on the Miners

Posted on 11 CommentsPosted in General Thoughts, Portfolio Management

I’ve received a lot of emails about the posts I did regarding my thoughts on the precious metal miners. As I mentioned in one of the posts, that industry is one that contains many passionate opinions, on both the bull and the bear side. I have received many questions regarding my opinions on the commodities themselves (gold and silver)… of which I really don’t have one, and also questions about Fed policy among other things… I really didn’t get too […]

Thoughts on Finding Value When Stocks Are Making New Highs

Posted on 3 CommentsPosted in Ben Graham, Investment Philosophy, Portfolio Management, Superinvestors, Think Differently, Walter Schloss

I’ve been traveling for the last two weeks, and thus the reason for the lack of posts. But I’ve been working and reading as usual, and actually have been active in making a few investments, despite the overall market climbing to new highs. I’ve mentioned this before, but it’s worth saying again… I put almost no emphasis on what the overall market is doing and where the indices are. I simply look for undervalued stocks. But regardless of the methods […]

Two Types of Investments and Thoughts on ROC Part 2

Posted on 4 CommentsPosted in Investment Philosophy, Portfolio Management

This is part 2 of a long post on my thoughts on how I break investments into two main categories: Earnings Based Investments and Asset Based Investments. This post picks up where the last post left off. Both are based on my investment checklist, which I posted last week. Check My Investment Checklist here, and read part 1 of this post here. Is the Investment Value Based on Earnings or Assets? So I look at ROC in most every investment, […]

Two Types of Investments and Thoughts on ROC

Posted on 2 CommentsPosted in Investment Philosophy, Portfolio Management

I wanted to post a follow up to my Friday post on my investment checklist. I got a lot of feedback and had a few follow up email conversations with readers who had questions and comments. Some wondered about the metrics used to check asset investments or financials (obviously EV/EBIT is not important there). I also had a question about ROC and why such an importance on it. There were some good questions and also some good advice/feedback. Thanks for […]

Thoughts on Diversification vs. Concentration

Posted on 6 CommentsPosted in General Thoughts, Investment Philosophy, Portfolio Management

I am thinking about concentration vs diversification. On the one hand, I don’t want to own a bunch of cheap stocks that aren’t very good businesses. I will own a few with asset backed protection, but I will diversify in these cases. I would be willing to concentrate my portfolio (10, 15, or even 20%) into one stock if I truly understand the business and I determined that it had a competitive advantage and a durable position in the market […]

Invert, Always Invert: Where do Investment Returns Come From?

Posted on Leave a commentPosted in How to Improve Results, Portfolio Management, Think Differently

Yesterday I wrote a post that started with a quote that Charlie Munger has often used: “Invert, Always Invert.” The idea is to think differently than the crowd. Ben Graham said that our results are based on our methods, not whether the crowd agrees with us or not. However, the structure of the market is such that thinking in a contrarian way often leads us to areas that offer greater investment results. I believe that contrarianism is a necessary, but […]

Invert, Always Invert: More on Thinking Differently

Posted on 1 CommentPosted in Ben Graham, How to Improve Results, Investment Philosophy, Investment Quotes, Portfolio Management, Superinvestors, Think Differently

“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 […]

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 […]

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 […]

To Arbitrage, or Not to Arbitrage

Posted on 3 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 […]