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Author: Rupert Hargreaves

Rupert Hargreaves is a freelance financial journalist and the founder of y-money.co.uk. Prior to his writing career, Rupert began his career as a proprietary currency trader. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK.
Hidden Value Stocks

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, value-focused hedge funds and partnerships all of which are trying to emulate the success of Warren Buffett’s early partnerships by finding hidden value stocks. Published every quarter, each issue of Hidden Value Stocks contains two interviews with under the radar fund managers. In the interviews, these managers…

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Seth Klarman: Approach Investing With a “Strict Standard of Risk Avoidance”

Seth 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 probabilities of individual outcomes and then investing in the scenario with the highest likelihood of success. As it is impossible to predict the future, it is best to include a wide margin of safety in the calculation of the probabilities. First proposed by Benjamin Graham,…

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Negative Shareholder Equity Isn’t All That Bad After All

Negative 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 could buy a stock for less than liquidation value, you would make money. Since Graham and Dodd published their landmark text, Security Analysis in 1934, many other studies have reached the same conclusion, particularly the research by Eugene Fama and Kenneth French. However, over the past two…

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Warren Buffett Lectures From 1991: What Makes A Good Business

Warren 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 comparison between two companies, a capital-intensive telecoms business and a capital-light newspaper business: “Now I’ll tell you a little bit about these companies (we’re leading up to the question of whether the business makes a difference). Company A had thousands of MBAs working for it….

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Losing It All Pt.4: Benjamin Graham

Losing It All Pt.4: Benjamin Graham

No series on the mistakes of the world’s greatest investors would be complete without looking at the mistakes made by the Godfather of value investing Benjamin Graham, in the early part of his career. Losing It All Pt.3 Losing It All Pt.2 Losing It All Pt. 1 Graham survived the 1929 crash but only just, and in the years after, he re-built his investing methods around what he had learned at the time and compiled these lessons into his first book,…

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Losing It All Pt.3

Losing It All Pt.3

Warren Buffett is considered to be the world’s best investor. Over the course of his career, he’s achieved outstanding returns for investors (and himself) buying undervalued stocks. He’s also achieved the best investment hit rate of all time; Buffett has only lost money on a few select occasions and losses have never exceeded more than 1% of capital. That being said, Buffett has made several mistakes during his career, and the biggest, he believes, cost him around $200 billion. Losing…

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Losing It All Pt.2

Losing It All Pt.2

In this series, I’m looking at some of the biggest investing mistakes of all time and how they transformed the investment strategies of those who made them. Part one looked at Carl Icahn’s biggest failure at the beginning of his career, a failure which caused him to rethink his whole strategy and outlook on life, putting in place the foundations for his activist career. Losing It All Pt. 1 In this, part two, I want to highly the story of Masayoshi Son,…

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Losing It All Pt. 1

Losing It All Pt. 1

I’ve noticed something interesting covering famous investors over the years. A large number of investors, who’ve then gone on to make enormous sums have, at some point in their careers, lost it all. It is often said that in investing, you learn more from a bad investment than you do a good one, and while it may be painful at the time, taking a substantial loss gives you a tremendous opportunity to learn — if you’re open to learning from…

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Dhando Investing

Dhando Investing

Mohnish Pabrai’s excellent book on investing The Dhandho Investor, (which I’m currently in the process or re-reading) should be required reading for all investors. This book is not a how-to investment guide, nor is it particularly focused on stock market investing at all. Instead, it is primarily a guide to the concept of Dhandho (pronounced dhun-doe). Every investor and business operator should understand the concept of Dhando. As Pabrai describes in his book, Dhandho is a Gujarati word, which when literally translated means…

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How To Invest Like Charlie Munger

How To Invest Like Charlie Munger

Charlie Munger is Warren Buffett’s right-hand man and also an accomplished investor in his own right. Warren Buffet is known as the world’s greatest investor and it can be said that Munger is the investment world’s most exceptional thinker. Indeed, it was Munger that inspired Buffett to change his strategy away from value towards quality, and ever since he joined Berkshire Hathaway, Charlie has proven himself to be a highly valuable filter of ideas for Buffett. “Opportunity cost is a…

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