Money and Finance
From Common Stocks and Uncommon Profits:
- Some Thoughts From Phil Fisher On Selling A Great (and Growing) Business...
From Common Stocks and Uncommon Profits:A word of caution may not be amiss, however, in regard to too readily selling a common stock in the hope of switching these funds into a still better one. There is always the risk that some major element in...
- Value And Growth Investing...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: A common misperception among professional investors is that there is a bright-line distinction between value and growth investing. This is a legacy belief...
- Seth Klarman Quotes
From the 2008 Graham and Dodd Breakfast (which took place on October 2, 2008):For years, when someone asked me what my biggest fear was as an investor in managing my portfolio, my answer was that it was buying too soon on the way down from often very...
- Sixth Pick In The Wmd Portfolio - Spectra Energy
The more real they are, the more fun blogs are to follow. So in that spirit, rather than talking about ideas in the abstract I maintain a hypothetical portfolio to track ideas where I'll semi-regularly (and hypothetically) invest and track buying...
- Samuel Lee On Quality At A Reasonable Price
Samuel Lee's recent article discusses Warren Buffett and the Time Horizon Arbitrage. In it, he describes the implications of Buffett's conversion from a Graham-style deep value, bargain hunter to a Munger-style quality oriented approach. Since...
Money and Finance
Phil Fisher on the best way to invest
From Common Stocks and Uncommon Profits:
The purpose of this book is not to point out every way such money can be made. Rather it is to point out the best way. By the best way is meant the greatest total profit for the least risk. The type of accounting-statistical activity which the general public seems to visualize as the heart of successful investing will, if enough effort be given it, turn up some apparent bargains. Some of these may be real bargains. In the case of others there may be such acute business troubles lying ahead, yet not discernible from a purely statistical study, that instead of being bargains they are actually selling at prices which in a few years will have proven to be very high.
Meanwhile, in the case of even the genuine bargain, the degree by which it is undervalued is usually somewhat limited. The time it takes to get adjusted to its true value is frequently considerable. So far as I have been able to observe, this means that over a time sufficient to give a fair comparison—say five years—the most skilled statistical bargain hunter ends up with a profit which is but a small part of the profit attained by those using reasonable intelligence in appraising the business characteristics of superbly managed growth companies. This, of course, is after charging the growth-stock investor with losses on ventures which did not turn out as expected, and charging the bargain hunter for a proportionate amount of bargains that just didn't turn out.
The reason why the growth stocks do so much better is that they seem to show gains in value in the hundreds of per cent each decade. In contrast, it is an unusual bargain that is as much as 50 per cent undervalued. The cumulative effect of this simple arithmetic should be obvious.
- Some Thoughts From Phil Fisher On Selling A Great (and Growing) Business...
From Common Stocks and Uncommon Profits:A word of caution may not be amiss, however, in regard to too readily selling a common stock in the hope of switching these funds into a still better one. There is always the risk that some major element in...
- Value And Growth Investing...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: A common misperception among professional investors is that there is a bright-line distinction between value and growth investing. This is a legacy belief...
- Seth Klarman Quotes
From the 2008 Graham and Dodd Breakfast (which took place on October 2, 2008):For years, when someone asked me what my biggest fear was as an investor in managing my portfolio, my answer was that it was buying too soon on the way down from often very...
- Sixth Pick In The Wmd Portfolio - Spectra Energy
The more real they are, the more fun blogs are to follow. So in that spirit, rather than talking about ideas in the abstract I maintain a hypothetical portfolio to track ideas where I'll semi-regularly (and hypothetically) invest and track buying...
- Samuel Lee On Quality At A Reasonable Price
Samuel Lee's recent article discusses Warren Buffett and the Time Horizon Arbitrage. In it, he describes the implications of Buffett's conversion from a Graham-style deep value, bargain hunter to a Munger-style quality oriented approach. Since...