Money and Finance
- 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 On Margin Of Safety And Intangible Assets...
From Seth Klarman, via Margin of Safety:Even among value investors there is ongoing disagreement concerning the appropriate margin of safety. Some highly successful investors, including Buffett, have come increasingly to recognize the value of intangible...
- Seth Klarman On Worrying About Asset Deflation...
From Seth Klarman, via Margin of Safety:Should investors worry about the possibility that business value may decline? Absolutely. Should they do anything about it? There are three responses that might be effective. First, since investors cannot predict...
- A Fresh Look At The Simple Formula
Earlier this week, a reader* of the blog had a look at the formula I laid out in "A Simple Formula for Investing Success" and cleverly suggested that the formula should be rearranged from: Investment + Good Company + Right Price +...
- A Fine Line Between Patience And Laziness
"Perhaps the strongest feature in his character was prudence, never acting until every circumstance, every consideration was maturely weighed; refraining if he saw a doubt, but, when once decided, going through with his purpose, whatever obstacles opposed."...
Money and Finance
The Complexity and Variability of Business Valuation
From Seth Klarman, via Margin of Safety:
The Complexity and Variability of Business Valuation
It would be a serious mistake to think that all the facts that describe a particular investment are or could be known. Not only may questions remain unanswered; all the right questions may not even have been asked. Even if the present could somehow be perfectly understood, most investments are dependent on outcomes that cannot be accurately foreseen.
Even if everything could be known about an investment, the complicating reality is that business values are not carved in stone. Investing would be much simpler if business values did remain constant while stock prices revolved predictably around them like the planets around the sun. If you cannot be certain of value, after all, then how can you be certain that you are buying at a discount? The truth is that you cannot.
- 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 On Margin Of Safety And Intangible Assets...
From Seth Klarman, via Margin of Safety:Even among value investors there is ongoing disagreement concerning the appropriate margin of safety. Some highly successful investors, including Buffett, have come increasingly to recognize the value of intangible...
- Seth Klarman On Worrying About Asset Deflation...
From Seth Klarman, via Margin of Safety:Should investors worry about the possibility that business value may decline? Absolutely. Should they do anything about it? There are three responses that might be effective. First, since investors cannot predict...
- A Fresh Look At The Simple Formula
Earlier this week, a reader* of the blog had a look at the formula I laid out in "A Simple Formula for Investing Success" and cleverly suggested that the formula should be rearranged from: Investment + Good Company + Right Price +...
- A Fine Line Between Patience And Laziness
"Perhaps the strongest feature in his character was prudence, never acting until every circumstance, every consideration was maturely weighed; refraining if he saw a doubt, but, when once decided, going through with his purpose, whatever obstacles opposed."...