Investment Philosophy

Two Key Checklist Items

Posted on

I am not a big fan of going through specific “checklist” items one by one when evaluating an investment idea. I know this idea has gained enormous popularity in recent years, partly due to the good book The Checklist Manifesto, and partly popularized in value investing circles by Mohnish Pabrai. I respect Mohnish a lot, and I think his idea of evaluating previous investment mistakes (both his own mistakes and especially the mistakes of other great investors) is an excellent exercise. […]

General Thoughts

General Thoughts on Portfolio Management and Diversification

Posted on

“Ship your grain across the sea; after many days you may receive a return. Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” –Ecclesiastes 11:1-2 Investors have always discussed and debated the merits of diversification—apparently even as far back as the days of King Solomon (although his definition of diversification—7 or 8 “ventures”—might not sit well with modern day portfolio theory and mutual fund managers who often hold 30, 50, or 100 […]

Investment Philosophy

Value Investing: Luck vs Skill Part 2

Posted on

Earlier this week I responded to a comment that centered around the role of luck in long term outperformance. Feel free to read my response to the comment in Part 1 of this post where I list the #1 main reason why most people don’t replicate the results of Walter Schloss. It’s a very simple reason demonstrated by the results of Schloss himself. Today, I’ll discuss luck in Part 2 of this post. Does Luck Play a Role in Great […]

How to Improve Results

Buffett vs Munger vs Schloss and Thoughts on Portfolio Strategy

Posted on

I was having a conversation about Munger’s philosophy vs Schloss’ philosophy and had a few thoughts (and below I’ll compare their performance results against Buffett’s)… I often like to look at long term past performance of investors (10 years or longer) to draw conclusions about the effectiveness of their investment approach. I’ve often discussed on this site the many value investors out there with average returns. I used to ask myself ‘how can their returns be average when they clearly […]

Ben Graham

Thoughts on Finding Value When Stocks Are Making New Highs

Posted on

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 […]

Investment Philosophy

Walter Schloss 1973 Forbes Article & Two Ways to Outperform the Market

Posted on

I just read an old Forbes piece on Walter Schloss: Making money out of junk. As many regular readers know, Schloss is one of my all time favorite investors. Read more about Schloss on my resource page and also check the Walter Schloss category. He made 21% per year for 47 years, investing in a simple, methodical, low stress manner working 9-4:30 with no other employees or assistants other than his son Edwin. Here are some key takeaways from the […]

Motivational

Who is Walter Schloss?

Posted on

Everybody has heard of Buffett. Every value investor knows Graham. But Walter Schloss is a man that for most of his life, despite putting up one of the all time great track records, spent most of his life under the radar. I suspect he liked it that way. Many value investors have extensively studied Schloss and his methods, but there are still many who have not heard of him, or haven’t read much about him. Schloss passed away last year […]

Ben Graham

Some Thoughts on My Investment Approach

Posted on

I’ve been having numerous email conversations with readers about my investment philosophy and overall approach to investing. To understand my investment philosophy, you have to first understand the basic investment principles from the four investors who I’ve learned the most from: Ben Graham, Walter Schloss, Joel Greenblatt, and Warren Buffett. My investment approach is a confluence of ideas that primarily stem from those four investors. Graham is the foundation. Schloss and Greenblatt add important ideas and strategies to Graham’s foundation. Buffett […]

Investment Quotes

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

Posted on

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 […]

Motivational

Warren Buffett Letter on Walter Schloss

Posted on

I came across a link today at Above Average Odds (a great value investing blog by the way) that I found interesting. It was a letter (actually two separate letters) that Warren Buffett wrote to his investment group regarding his friend Walter Schloss. I am a huge follower of Walter Schloss (and needless to say, Buffett as well). Schloss’ investment style is one that I try to emulate in my own investing, and it’s one that I feel most individual investors […]