The Behavior of Stock Market Manias

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I’ve heard more and more commentary/concern about the level of the overall market lately. With the market relentlessly marching to new all-time highs just about every day, I’ve even begun to hear the word “bubble” being used. While I certainly don’t think the market overall is cheap, and while I certainly believe it’s very possible that a bear market could occur at any time, we are definitely not in a bubble. Anyone who thinks that the current market is reaching […]


DELL and EBIX, Heads, I Win Now; Tails, I Win Later

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Yesterday I wrote a piece where I listed the three categories that my investments typically fall into: Franchises, Cheap and Good Stocks, and Cheap Asset Stocks. I also described a 4th category called Special Situations that I occasionally participate in when I find an interesting idea. The vast majority of my investments fall into the first three categories, but recently, I’ve looked at two interesting special situations that have a few similarities. Dell and Ebix are two stocks that I’ve […]

Investment Philosophy

Cheapness is an Excellent Catalyst

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I group my equity investments into three main categories: Compounders (These are Warren Buffett “forever” stocks, or franchise businesses with durable competitive advantages that I’m willing to hold for a long time as long time as long as the business continues to compound cash flow, dividends, and intrinsic value.) Cheap and Good (These are stocks that are not as high quality as the compounders, but are still above average businesses producing good returns on capital but are for some reason […]