A Classic Example of Why Discipline and Wealth Go Hand-in-Hand

A great quote from The Warren Buffett Way, Third Edition, (2014) by Robert G. Hagstrom.

The difference between Warren Buffett and most investors has more to do with discipline than just about any other quality. There are plenty of smart investors, and most of them failed to deliver results that compare with Buffett (I will soon write another blog post that summarizes Howard Marks’s forward to… Continue reading

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Mohnish Pabrai Has Not Made an Investment in a New Idea in Over 18 Months

Forbes once identified Mohnish as one of the investment managers who could assume the value-investing guru mantle from Buffett. In his 2013 Annual Letter, Pabrai wrote that he has not found a new idea in which to invest in over eighteen months. Such is the life of a contrarian value investor like Pabrai, Klarman, and PAR. When markets are rising like crazy (2013) they remain true to their discipline… Continue reading

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Seth Klarman is Sitting on a Mountain of Cash

“…around 50% of our assets are in cash, and that’s a very high absolute number, now around $14 billion and rising…”–Seth Klarman

I recently came across this quote from Seth Klarman of the Baupost Group, which he said during a speech that he gave at James Grant’s Investment Conference in October 2013 (http://www.grantspub.com/mygrants/viewarticle.cfm?aid=4995).

If anything, Seth has less capital employed now than he did… Continue reading

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“…the prime directive will be to ‘lose as little money as possible’.” Jason Zweig Interviews Dean LeBaron

The WSJ published another excellent The Intelligent Investor column today written by Jason Zweig. In it, Jason interviews Dean LeBaron, retired founder of Batterymarch Financial Management.

“For decades, the name of the game for investors has been to make as much money as possible. From now on, Mr. LeBaron thinks, the prime directive will be to “lose as little money as possible…… Continue reading

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Annual US Market Return Histogram through 2013

It was a remarkable year for the US stock market in 2013 as the S&P 500 Index delivered a total return of 32.39%. As one can see in the attached histogram, it was the market’s best year since 1997. That late 1990s bull run lasted until March 2000, but the 1999 results were followed by -9.1% in 2000, -11.9% in 2001, and -22.1% in 2002. Investors were giddy… Continue reading

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A Book Review

Heh, I was looking at the NYSSA website and stumbled on a book review written in 2011 of Joel Greenblatt’s The Big Secret for the Small Investor and forgot that I wrote the review. Enjoy:

http://post.nyssa.org/nyssa-news/2011/05/book-review-the-big-secret-for-the-small-investor.html

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Joel Greenblatt on Value Investing (Morningstar)

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Tie Yourself to the Mast

Jason Zweig writes an excellent column on tying oneself to the mast (as in the above painting) for financial decision making when the alternative is to rely on willpower alone. Many people believe they can maneuver in choppy markets; fully participate in bull runs and get out before markets turn south. Those who force themselves to stay with a process and a plan usually perform better in the long run.… Continue reading

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The Stock Market: Looking in from the Outside

We are nearly halfway through 2013 and the S&P 500 Total Return Index is on pace to deliver a return of over 47% for the year. In the last 188 years of stock market activity, the market delivered an annual return of over 40% just ten times. The last time it did so was 1958 and it is interesting that 1928 was one of the ten years.

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John Rogers Discusses Investors’ Rights

The CEO of the CFA Institute discusses investors’ rights with the Wall Street Journal… Continue reading

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