|
|
|
| 23rd July 2008
- |
“The safety sought in investment is not absolute or complete; the word means, rather, protection against loss under all normal or reasonably likely conditions or variations.”-Benjamin Graham |
| 21st July 2008
- |
“It doesn’t matter how beautiful the guess is, or how smart the guesser is, or how famous the guesser is; if the experiment disagrees with the guess, then the guess is wrong. That’s all there is to it.”-physicist Richard Feynman |
| 19th July 2008
- |
“This goes back at least to Ben Graham, but if you’re getting a significant discount to what you think something is worth, that helps mitigate risk.” - Ric Dillon, Diamond Hill Investments, Value Investor – June 2008 |
| 18th July 2008
- |
“I think of stocks as businesses.”-Larry Tisch |
| 18th July 2008
- |
“This goes back at least to Ben Graham, but if you’re getting a significant discount to what you think something is worth, that helps mitigate risk.” - Ric Dillon, Diamond Hill Investments, Value Investor – June 2008 |
| 17th July 2008
- |
“Remember the definition of a stock that has fallen 90%: one that’s fallen by 80% and then halves.”- Gerard Minack |
| 15th July 2008
- |
“I like deals with hair on them. If a business doesn’t have complications, it’s probably too expensive for us.”- Charles Koch |
| 14th July 2008
- |
“Ain’t only three things to gambling: knowing the 60-40 end of a proposition, money management, and knowing yourself.”- “Puggy” Pearson, the late, great poker pro |
| 12th July 2008
- |
“Just like in nature, you need scavengers to clean up.”- John Stark, vulture investor |
| 11th July 2008
- |
“It is proof of a bad cause when it is applauded by the mob.”- Seneca |
| 10th July 2008
- |
“We are big fans of fear, and in investing it is clearly better to be scared than sorry.” - Seth Klarman |
| 8th July 2008
- |
“We typically have around 40 bets, some of which involve more than one particular position. We have a hard rule that no individual position will be more than 10% of the portfolio and a softer one that limits our industry exposure to no more than 20%. Our geographic focus is primarily North America and the U.K. For better or worse, the Anglo Saxon business model puts the interests of shareholders first. We are less comfortable in markets where loyalties are more divided.”- Jeffrey Schwarz, Metropolitan Capital Advisors, Value Investor – May 2008 |
| 7th July 2008
- |
“Most often we start with today's cash flow as a proxy for normalized cash flow, then adjust for non-recurring or unusual items. We’ll also adjust for what we consider growth capital spending, so as not to penalize companies whose free cash flow appears lower because they’re investing in attractive growth opportunities. If we're getting a 9-10% free cash flow yield in an industry that we don't see going away any time soon, and then can find other interesting lottery tickets providing us with upside, that generally starts to get our attention.”- Jeffrey Schwarz, Metropolitan Capital Advisors, Value Investor – May 2008 |
| 5th July 2008
- |
“Another place we find ideas is by following M&A news – not necessarily because all the deals are interesting, but because they often signal situations or industries that are in flux and can therefore be mispriced.”- Karen Finerman, Metropolitan Capital Advisors, Value Investor – May 2008 |
| 4th July 2008
- |
“We’ve learned from hard experience to put more emphasis on higher-quality companies rather than just the cheapest. We look for companies well-positioned versus their competitors and operating in markets that are conducive to sustainable profitability and free cash flow generation. The problem – and therefore the opportunity – is usually that there’s a headwind that has everyone worried. Music to my ears is when something is considered dead money and people say, “It looks okay, but I’ll come back to it later when this or that issue resolves itself.” That to me shouts “look here.”- Jeffrey Schwarz, Metropolitan Capital Advisors, Value Investor – May 2008 |
| 3rd July 2008
- |
“In volatile, crummy markets like we’ve now been in for almost a year, it’s very important to filter out the noise of the market and focus on the underlying investment. Jeffrey is particularly good at that – stepping back and saying if we liked something at $27 and it’s now at $22 and nothing is different, we should be buying more. It goes against your survival instinct to make yourself more exposed to a terrible market, but that has invariably been the time to plant the seeds for good returns later on.” - Karen Finerman, Metropolitan Capital Advisors, Value Investor – May 2008 |
| 2nd July 2008
- |
“We like it when expectations are very low and we have a contrarian view on a broader issue impacting the company. Low expectations help limit the downside and can result in prices that leave you paying nothing for the upside if good things happen. As Joel Greenblatt, who is one of my oldest friends, always says, “If you don't lose money, most of the remaining alternatives are good ones!”- Jeffrey Schwarz, Metropolitan Capital Advisors, Value Investor – May 2008 |
| 30th June 2008
- |
“If you are a value investor, you’re a long-term investor. If you are a long-term investor, you’re not trying to keep up with a benchmark on a short-term basis. To do that, you accept in advance that every now and then you will lag behind, which is another way of saying you will suffer. That’s very hard to accept in advance because, the truth is, human nature shrinks from pain. That’s why not so many people invest this way. But if you believe as strongly as I do that value investing not only makes sense, but that it works, there’s really no credible alternative.”- Jean-Marie Eveillard, First Eagle Funds, Value Investor – May 2008
|
| 28th June 2008
- |
“Many of our other mistakes fall in the category of getting the three, four or five most important characteristics of the business wrong. We thankfully were not very exposed, but many value investors held too long onto newspaper stocks, not recognizing that the business had fundamentally changed and actually moved to what is likely to be a quasi-permanent decline. Recognizing that before it’s too late can be very difficult, particularly in what has traditionally been a relatively slow-to-change business.”- Jean-Marie Eveillard, First Eagle Funds, Value Investor – May 2008 |
| 27th June 2008
- |
“One would be ignoring the potential impact of leverage. I know the effect goes both ways, but say you do a sum-of-the- parts analysis and think the assets of a company are worth $100. If the company has $70 of debt, overstating the asset value by only $10 makes the equity value go from $30 to $20. In the grand scheme of things, being 10% off isn’t that big a mistake, but when there’s heavy leverage, it is.”- Jean-Marie Eveillard, First Eagle Funds, Value Investor – May 2008 |
|
Next page |
|
|
|
