Tag Archives: Closet Indexers

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 … Continue reading

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Patience, but the Willingness to Act Decisively when Opportunities Arise…

..these are the keys to investment success, not throwing capital at 500 companies merely because those companies are in somebody’s index… Continue reading

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Unapologetic After All These Years: Eugene Fama Defends Investor Rationality and Market Efficiency | CFA Institute Annual Conference

One has to admire Fama’s consistency. He is wrong about market efficiency, but he is consistent. Although he makes some good points, he also makes many errors. His criticism of Kahneman is absolutely wrong, for example. Kahneman would say that we … Continue reading

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Typical Story of an Unknown Value Investor with Little AUM

The NYSSA linked to a story in Smart Money that I had to share. It is a story of a fund manager who seeks to buy companies that are trading at a discount to their intrinsic value and that have excellent long-term prospects; in other … Continue reading

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Another Great One by James Montier

Read the whole thing: http://www.ft.com/intl/cms/s/0/77f0077c-c35a-11e0-9109-00144feabdc0.html#axzz1YtylE6lL “…there is a simple, although not easy…alternative (to  benchmark-focused investing)…use a value approach across a wide range of assets. Buy when an asset is cheap, and sell when an asset gets expensive – buy low and … Continue reading

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The Investing World’s Reaction to Buffett’s Hiring of Richard “Ted” Weschler

I am surprised at the reaction among investors and the media over Buffett’s selection of Ted Weschler as one of his portfolio management successors, but I suppose I should be used to it by now. The general reaction has been: … Continue reading

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CAPE Update (Or, was Last Week’s 5.6% Market Pop Justified?)

As of July 1, 2011, the Cyclically Adjusted PE (CAPE) ratio for the S&P 500 is 23.13, which essentially means the average share of common stock in the S&P 500 companies trades for 23.13 times its annual earnings averaged over … Continue reading

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Joel Greenblatt, Master of Smart, Terse Investment Books

I received Joel Greenblatt’s new book last week, The Big Secret for the Small Investor. I was able to devour it in a few hours and The Finance Professionals’ Post agreed to let me review it. Greenblatt is the master … Continue reading

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Aswath Damodaran’s Conversion on the Road to Chicago

In a recent blogpost, Aswath Damodaran talks about his conversion on the road to Chicago (that is, his acceptance of reality as it is versus his belief in reality as stipulated by Eugene Fama of the University of Chicago). Enjoy: … Continue reading

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The Brandes Institute’s Latest Research; BI Added to the Value Investing Resources List

The Brandes Institute is a subsidiary of value-investing firm Brandes Investment Partners and it publishes investment research in academic and professional journals as well as on its website. I have included a link to their research in the Value Investing Resources … Continue reading

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