Case Studies

Sears and Seven-Foot Hurdles

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A few weeks back I came across an article that someone had posted on Sears. It is a fascinating read for a few different reasons. One, I think Sears is an excellent case study of the retail industry and the difficulties of investing and allocating capital in that type of business, and two, the article was written in the summer of 1988. This post is not a prediction of the demise of Sears, or an indictment against those who find value […]


Memorial Day Weekend Reading

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I’ll continue the discussion on compounders and the importance of ROIC next week. I have a few thoughts I’d like to discuss on that subject in the next few weeks. In the meantime, I thought I’d share just a few links to some good reading material. Memorial Day here in the US always marks the beginning of summer for me, and I always have a long list of reading material ready for summer. This is not a comprehensive summer reading […]

Shareholder Letters & Reports

Eddie Lampert 2014 Shareholder Letter

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“Messer Hubbard and Bell want to install one of their “telephone devices” in every city. The idea is idiotic on the face of it. Furthermore, why would any person want to use this ungainly and impractical device when he can send a messenger to the telegraph office and have a clear written message sent to any large city in the United States?”  —Excerpt from a Western Union internal report in response to an offer from Alexander Graham Bell (inventor of […]

Bruce Berkowitz

Bruce Berkowitz Discusses His Financial Investments

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Bruce Berkowitz is one investor that I like to study. I like to run an adequately diversified portfolio, taking advantage of what I consider to be numerous high probability situations. I imagine certain probabilities with each investment, and I look at diversification in two ways: one is through the various positions I currently have, and one is through the positions I will hold in the future. The latter refers to my thesis that over time, buying undervalued stocks over and […]

Get Better by Reading

Thoughts on Investment Process & Shareholder Letters to Read

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In the last week or so, I’ve written a couple posts on my investment process. One post discussed where I look for ideas and the tools I use, and the other briefly discussed my investment routine. Feel free to read those posts for more of my thoughts on my process, but here is a quick summary of the places I look on a daily/weekly/monthly basis for investment ideas: Value Line Wall Street Journal Investment Blogs Screeners New Low List Value […]