Tag Archives: Value Investing

About this Week’s Barron’s Cover Story: Why do Investors Care?

Posted on September 8, 2010 by Ray Galkowski, CFA

The cover story of this week’s Barron’s is titled “What’s Ahead for Stocks” and it is accompanied by a cartoon of three strategists who are drawing curves on a white board (three different curves, I should add). The author, Kopin Tan, asks ten Wall Street strategists to predict what will happen to stocks in the near future based largely on their predictions of economic activity. It immediately brought to mind something Buffett once said:

“I’ve never made a dime predicting economic activity. We just try to buy businesses we understand at sensible prices.”[1]

Of course ignoring market prognosticators and buying good businesses at sensible prices is what all good value investors do.
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Are You an Investing Pigeon like Buffett?

Posted on August 12, 2010 by Ray Galkowski, CFA

How Human Behavior may Lead to a Persistent Edge for Value Investors

Many believe that there can be no permanent edge in investing because they believe that market forces will quickly eliminate any edge. That is, many believe that sophisticated investors will bid up prices in investment strategies that tend to outperform and bid down prices in strategies that tend to lag until the edge disappears.

For my first post on this blog, I will write about a persistent investing edge–value investing–and one reason why that edge may never disappear; that reason being human behavior, which rarely changes. We can thank Jason Zweig (Your Money and Your Brain) and James Montier (Behavioural Investing) for bringing to our attention the behavioral experiments described in this post.

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