Investing Tag Archive

Investing strategies need to evolve

(Excerpt from Keep Running! By Morgan Housel) In his book Investing, Robert Hagstrom wrote about strategies that once worked but eventually withered: In the 1930s and 1940s, the discount-to-hard-book-value strategy...

July 31, 2020| Adaptability, Investing, Map Is Not Territory Read More

Evaluate each business based on a couple of unique factors

(Excerpt from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Each business will have a couple of unique factors that are essential in evaluating its progress. Often, those unique factors are not...

May 10, 2020| Investing Read More

This is probably why Buffett bought airlines

(Excerpt from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Buffett said this is the number one question he would ask of himself: why is Berkshire investing in capital-intensive businesses?...

May 5, 2020| Investing Read More

Globalisation introduces volatility spikes

(Excerpt from “The Interesting Times” email 21 Mar 2020 by Taylor Pearson) As a thought experiment, imagine 100 ladders lined up against a long wall. Each has a 10% probability of falling over. If the...

March 22, 2020| Entropy, Investing, Nonlinearity, World Read More

A mistake is made if you had legit confidence about something but you fail to act big

(Extracted from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Munger observed that the most extreme mistakes in Berkshire’s history show up as opportunity costs. … In his younger...

March 20, 2020| Circle of Competence, Investing, Kelly Criterion, Life Read More

Stock as a bond with an unknown coupon rate

(Extracted from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Buffett explained that buying a business is much like buying a bond with no maturity and with a blank coupon. You must write...

March 10, 2020| Investing Read More

Book value is what you have put into the business

(Extracted from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Buffett also noted that book value is seldom meaningful in analyzing the value of a business. Book value simply records what was put...

March 10, 2020| Investing Read More

Why investors are impatient

(Excerpt from Useful Laws of the Land by Morgan Housel) Vierordt’s law: We underestimate long periods of time and overestimate short periods of time. Nineteenth-century physiologist Karl von Vierordt spent most...

February 23, 2020| Investing Read More

You have to be reactive and not proactive in the markets

(Extracted from The Business of Options by Martin O’Connell) When I left the corporate life to become an independent CBOE marketmaker in 1977, I considered myself to be a real adventurer. I wasn’t going to spend...

February 20, 2020| Investing Read More

Your Investing Return Is Highly Dependent On When You Were Born

(Extracted from When You Were Born > Everything Else by Michael Batnick) What is the most important factor behind one’s investing experience? Is it their ability to analyze a business, their temperament, or their...

February 14, 2020| Investing Read More

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