Portfolio Management

Warren Buffett on How He’d Invest Small Sums of Money

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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 […]

General Thoughts

To Arbitrage, or Not to Arbitrage

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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 […]

Investment Philosophy

My Reasons for Selling Stocks

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A reader emailed me last week and said that he likes reading about my investment process, but mentioned that I haven’t discussed a selling strategy. Like most value investors, I spend the majority of my time reading and searching for new investment ideas. My turnover is low, and I like to think of my portfolio of companies working for me while I spend my time reading, learning and looking for new ideas. However, positions do turn over and selling is […]

Portfolio Management

“Canada’s Warren Buffett” on the Importance of Holding Cash

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Fairfax Financial Holdings just announced their 2012 year end results and over the weekend I had a chance to read through the conference call transcripts and make some quick notes. I’m always interested in listen/read what the Fairfax chairman and CEO Prem Watsa has to say. Watsa is one of the best investors in the world. He is often compared with Warren Buffett, not only for his investment acumen, but also for the similarities in the business vehicle he uses. Like […]