Books

Mohnish Pabrai: Here’s Why Buffett Bought Coke (KO) in 1987

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I was reading a passage from Mohnish Pabrai‘s book Mosaic: Perspectives on Investing. I love reading Pabrai’s thoughts and ideas whenever I can. He’s one of the greatest investors of the last 15 years, establishing a track record that has significantly outperformed the S&P 500, including a remarkable run from 1999-2007 when he averaged around 30% per year. One reason I like Pabrai is because he uses simple logic to explain his investment process. We’re big fans of simplicity here […]

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 […]

Motivational

Warren Buffett Letter on Walter Schloss

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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 […]

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 […]

Ben Graham

Value vs. Growth Investing-Which Method is Best?

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As an investor who studies in great detail the strategies and investment philosophies of the great value investors, I have always been intrigued by the debate of value vs. growth. I just wrote this post on qualitative vs. quantitative analysis. The discussion between growth and value is similar: the best growth investors are good business analysts… they have to be. It’s easy to find a company that’s growing, but the hard part is determining if that company will continue to […]

Ben Graham

Warren Buffett & Ben Graham on Diversification & Investment Philosophy Differences

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“Interesting possibilities abound on the financial scene, and the intelligent and enterprising investor should be able to find both enjoyment and profit in this three-ring circus. Excitement is guaranteed.” –Ben Graham, from the postscript of The Intelligent Investor.  I was listening to the tribute video that came out a few days ago on Ben Graham. It’s a great video put together by Columbia Business School, and I highly recommend taking a listen to it. In it, the producers interview Warren […]

Investment Philosophy

Buffett: This is What Creates Huge Opportunity

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I was watching an old video of Warren Buffett talking to University of Georgia students from 2001, just after the tech bubble burst. It’s a great video to watch (as are most videos when Buffett is giving a lecture). One of the highlights for me is listening to Buffett discuss his very basic philosophy on value investing and why it works. At around the 50 minute mark of this video, he gets asked this question (paraphrasing): How is the recent […]