Money and Finance
Charlie Munger has his famous three laws of investing:
In this spirit, I offer my Three Great Lessons for Income Investors:
- Price And The Wonderful Company...
From Deep Value: We know that a wonderful company will earn an average return if the market price reflects its fair value. To outperform, the price must be discounted—the wider the discount, or margin of safety, the better the return—or the business...
- A 13% Hurdle...
Just an interesting couple of comments mentioning the 13% hurdle number which I hadn’t noticed together until recently. In Poor Charlie's Almanack, I think there was also a comment from Munger along the lines that Berkshire's one big, 'hedgehog'...
- The Best Of Both Worlds: Put Options
Obviously the most important part about investing is finding the truly great companies that have the ability to grow profits and dividends for decades on end. Once you identify those companies through a qualitative analysis the next step I like to take...
- Are You A Better Investor Than Fund Managers?
Earlier this week, I came across an interesting study by Andriy Bodnaruk of the University of Notre Dame and Andrei Simonov of Michigan State University, entitled "Do Financial Experts Make Better Investment Decisions?" The pair analyzed the personal...
- What Matters In The Long Run
Here is a guest post from my friend Adrian Lane that shows what long term time horizons can do, how they massively overweight any other single advantage, and a lesson on when to sell: "In the 1990s, working in tech during the great Internet surge, cash...
Money and Finance
Three Great Lessons of Income Investing
Charlie Munger has his famous three laws of investing:
In this spirit, I offer my Three Great Lessons for Income Investors:
- A great business with a fair yield is superior to a fair business with a great yield
- A great business with a fair yield is superior to a fair business with a great yield
- A great business with a fair yield is superior to a fair business with a great yield
Where to find these businesses? Here are some analytical tools to get started.
- Price And The Wonderful Company...
From Deep Value: We know that a wonderful company will earn an average return if the market price reflects its fair value. To outperform, the price must be discounted—the wider the discount, or margin of safety, the better the return—or the business...
- A 13% Hurdle...
Just an interesting couple of comments mentioning the 13% hurdle number which I hadn’t noticed together until recently. In Poor Charlie's Almanack, I think there was also a comment from Munger along the lines that Berkshire's one big, 'hedgehog'...
- The Best Of Both Worlds: Put Options
Obviously the most important part about investing is finding the truly great companies that have the ability to grow profits and dividends for decades on end. Once you identify those companies through a qualitative analysis the next step I like to take...
- Are You A Better Investor Than Fund Managers?
Earlier this week, I came across an interesting study by Andriy Bodnaruk of the University of Notre Dame and Andrei Simonov of Michigan State University, entitled "Do Financial Experts Make Better Investment Decisions?" The pair analyzed the personal...
- What Matters In The Long Run
Here is a guest post from my friend Adrian Lane that shows what long term time horizons can do, how they massively overweight any other single advantage, and a lesson on when to sell: "In the 1990s, working in tech during the great Internet surge, cash...