Money and Finance
- Comments From Felix Zulauf, James Montier And David Iben
Link to: We will continue to swim in a sea of liquidityJames, we have slow growth, no inflation, low interest rates and easy monetary policy as far as the eye can see. Are we living in the best of all worlds for investors? James Montier: How...
- Gmo Investor Clued Up On Human Beings
Thanks to Phil for passing this along. “Hi, my name is James Montier, and I’m a value investor. I haven’t bought an expensive stock for 25 years.”GMO treats its own obsession with value investing with a touch of irony unusual in the fund management...
- Selling Cash-secured Put Options
[This article is also posted on Seeking Alpha HERE.] Selling puts on stocks can be a good way to either gain some yield and/or try and buy a stock you'd like to own at a lower price. I prefer cash-secured puts so that if the stock gets put to you,...
- Gurufocus Interviews Prem Watsa
GuruFocus: Now we jump to another topic. What do you think about what's going on in Europe? Greece, Italy, what about the solutions and the opportunities? Watsa: Well Europe, to put it in perspective, I think you might have seen something that I spoke...
- When Second Best Is Better - The Case For Patient Quality Over Bravery (if You Have A Job)
Having a job is great, but its good to have extra income sources as well. A common one is to buy some rental property, but they have always seemed like a hassle to me. For one thing I do not have the handy man skills and for another my friends who do...
Money and Finance
James Montier on 2008/2009...
James Montier’s answer to a follow-up question at the European Investing Summit 2012 (for those interested, the next Investing Summit is on Japan and will take place November 7-8....more information can be found HERE).
Question: Going back to the lowest point of the markets in late 2008/2009, what was going through your mind? How did you retain the courage and confidence to carry on?
James Montier: In late 2008 and early 2009 I was getting very excited because I was seeing a large number of stocks appearing on my value screens, and seeing cheap valuation at the market level. So whilst a lot of people were focusing on the things that could go wrong (and there was no shortage of them back then), because I was focused on valuations I was getting buy signals. The key point is to have a good process and to stick to it. This cuts down on the amount of decision making under duress that you are forced to conduct. Sir John Templeton used to talk about doing his analysis on quiet days in the market and placing limit orders with brokers, he knew when the stock was down 50% he wouldn’t want to buy it (emotionally) but his pre-commitment strategy forced him to do so.
Seth Klarman puts it this way “One of our strategies for maintaining rational thinking at all times is to attempt to avoid the extreme stresses that lead to poor decision making. We have often described our techniques for accomplishing this: willingness to hold cash in the absence of compelling investment opportunity, a strong sell discipline, significant hedging activity and avoidance of recourse leverage, among others.”
- Comments From Felix Zulauf, James Montier And David Iben
Link to: We will continue to swim in a sea of liquidityJames, we have slow growth, no inflation, low interest rates and easy monetary policy as far as the eye can see. Are we living in the best of all worlds for investors? James Montier: How...
- Gmo Investor Clued Up On Human Beings
Thanks to Phil for passing this along. “Hi, my name is James Montier, and I’m a value investor. I haven’t bought an expensive stock for 25 years.”GMO treats its own obsession with value investing with a touch of irony unusual in the fund management...
- Selling Cash-secured Put Options
[This article is also posted on Seeking Alpha HERE.] Selling puts on stocks can be a good way to either gain some yield and/or try and buy a stock you'd like to own at a lower price. I prefer cash-secured puts so that if the stock gets put to you,...
- Gurufocus Interviews Prem Watsa
GuruFocus: Now we jump to another topic. What do you think about what's going on in Europe? Greece, Italy, what about the solutions and the opportunities? Watsa: Well Europe, to put it in perspective, I think you might have seen something that I spoke...
- When Second Best Is Better - The Case For Patient Quality Over Bravery (if You Have A Job)
Having a job is great, but its good to have extra income sources as well. A common one is to buy some rental property, but they have always seemed like a hassle to me. For one thing I do not have the handy man skills and for another my friends who do...