Understanding the numbers is just one part of investing. To be a successful long-term investor, you need not only understand the numbers but also the psychological traits required to be able to capitalise on your
Continue ReadingWhy Debt Is Like Russian Roulette
Since the mid-1950s, global indebtedness has exploded to record levels. At the beginning of 2019, the IMF reported global debt reached an all-time high of $184 trillion in nominal terms at the end of 2018,
Continue ReadingMohnish Pabrai: The Most Common Mistake Investors Make
Mohnish Pabrai is widely considered to be one of the best value investors managing money today. He runs the Pabrai Investment Funds, a group of hedge funds modelled on Buffett’s original partnerships. Returns since inception
Continue ReadingSeth Klarman On Catalysts In Value Investing
One of the most frustrating scenarios to be faced with as an investor is a stagnant stock price. You’ve done all the hard work, analysed the company correctly, invested at a deep discount to intrinsic
Continue ReadingExtract From The Upcoming Hidden Value Stocks Q1 2019 Issue
An extract from the Q1 2019 issue of Hidden Value Stocks. The issue features two interviews with emerging hedge fund managers, Gate City Capital Management and Breach Inlet. This is an extract from the interview
Continue ReadingLessons From The Collapse of Flybe
There are only two things investors can control when it comes to investing in the public equity markets. Firstly, the price paid for the security you have decided to include in your portfolio and secondly,
Continue ReadingThe Permanent Portfolio And Joel Greenblatt’s Big Secret
I recently wrote an article for Gurufocus.com on an asset allocation strategy called the ‘Permanent Portfolio’ (PP). For readers who don’t know, or who haven’t heard about this portfolio approach before, it was first published
Continue Reading
Hidden Value Stocks
I’ve not been able to post on this blog recently because I’ve been working flat out on a new business venture with my partner called Hidden Value Stocks. This is a stock newsletter focused on small,
Continue ReadingSeth Klarman: Approach Investing With a “Strict Standard of Risk Avoidance”
Investing is hard. To be able to outperform the market consistently, you need to be able to predict the future. Unfortunately, predicting the future is impossible. So, investing is a game of probabilities. Estimating the
Continue ReadingNegative Shareholder Equity Isn’t All That Bad After All
In many respects, the style of value investing is built around shareholder equity and book value. Benjamin Graham and David Dodd built their net-nets investment strategy on book value, with the logic that if you
Continue ReadingWarren Buffett Lectures From 1991: What Makes A Good Business
Below are notes taken across three lectures by Warren Buffett to the Notre Dame Faculty in 1991 on the topic of pricing power, and what makes a good business. The first set of notes is a
Continue Reading