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Author: Money Is Boring

Why Warren Buffett Reads Annual Reports

Why Warren Buffett Reads Annual Reports

Most investors never review company annual reports. It’s easy to understand why. Full of facts, figures and detailed accounting notes, these reports are hard going. They’re not exactly bedtime reading. However, annual reports often contain valuable information for investors. As such, they shouldn’t be overlooked, no matter how dry the material is. So, what’s the best way to read these reports? Is there anything we should be on the lookout for that might provide insight into a company’s financial position…

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Warren Buffett: How Phil Fisher’s Scuttlebutt Method Should Be Used

Warren Buffett: How Phil Fisher’s Scuttlebutt Method Should Be Used

In 1960, Warren Buffett read a book that changed his investment mentality forever. The book was called “Common Stocks and Uncommon Profits,” and it was written by Phil Fisher in 1958. In the book, Fisher described what he called the scuttlebutt method for finding investments. This method was the process of discovering as much about a company and its products as possible. To do this, Fisher recommended interviewing competitors as well as listening to rumours on the business “grapevine.” He…

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How To Start Investing: 5 Simple Steps

How To Start Investing: 5 Simple Steps

Over the past 10 years, I’ve learned a lot about the stock market and what it takes to start investing and successfully and build wealth. Most new investors trip up because they make some simple mistakes, which are quite easy to avoid if you know what to look for in the first place. However, if you don’t know what to look for, these mistakes could become costly learning experiences. With that in mind, here are my five simple steps to…

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The Best Method To Overcome Uncertainty It To Embrace It

The Best Method To Overcome Uncertainty It To Embrace It

Investors currently have to grapple with one of the most uncertain investing environments in recent history.  There are so many things going on right now it’s challenging to figure out which is the most pressing, especially from an investment perspective. The coronavirus is a global health emergency, and it has caused untold economic pain around the world.  Brexit is also on the agenda once again. It’s looking increasingly likely that the UK and EU will fail to reach an agreement…

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Lessons from Wall Street’s Four Great Bottoms

Lessons from Wall Street’s Four Great Bottoms

Professor Russell Napier spends most of his time studying financial markets. Author of The Solid Ground investment report for institutional investors and co-founder of the investment research portal ERIC, Russell has been writing global macro strategy for institutional investors since 1995. He’s also a student of financial mistakes. He set up the not-for-profit Library of Mistakes in 2014, a library dedicated to avoiding mistakes. The professor set the Libary up with the simple goal of educating the financial world about…

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How Phil Fisher’s “Common Stocks and Uncommon Profits” Changed Warren Buffett’s View Of Investing

How Phil Fisher’s “Common Stocks and Uncommon Profits” Changed Warren Buffett’s View Of Investing

Warren Buffett was taught how to invest by Benjamin Graham, who is considered to be the Godfather of value investing. In the early years of his career, Buffett followed Graham’s style of investing closely. He concentrated his efforts on finding so-called “cigar-butts,” stocks trading at bargain-basement valuations due to structural issues.  Here’s Buffett explaining the approach in his 1989 letter to Berkshire Hathaway shareholders:  “If you buy a stock at a sufficiently low price, there will usually be some hiccup…

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The Best Investors Only Act On Their Best Ideas

The Best Investors Only Act On Their Best Ideas

According to Investopedia, 630,000 companies are traded publically on stock exchanges around the world.  Of these, less than 5,000 trade on US exchanges and 2,080 are listed on the London Stock Exchange, which claims to be the world’s most international of global exchanges. With so many options out there, investors are spoilt for choice when it comes to choosing investments. But this level of choice is not necessarily a good thing.  Most companies underperform Of the thousands of public companies…

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Lessons From The Charlie Munger Partnership

Lessons From The Charlie Munger Partnership

Before he became Warren Buffett’s right-hand man at Berkshire Hathaway, Charlie Munger ran his own investment partnership where he established an impressive track record for himself. In fact, the Munger partnership performance earned him a place in Warren Buffett’s now-famous essay, The Superinvestors of Graham and Doddsville: “ … is the record of a friend of mine who is a Harvard Law graduate, who set up a major law firm. I ran into him in about 1960 and told him…

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Property Investing And The Advantages of an Illiquid Asset

Property Investing And The Advantages of an Illiquid Asset

Real estate is a great way to build wealth, and owning property has made a lot of people a lot of money over the years. However, equity investing has yielded similar, if not better results over the years (although this varies from market to market and depends on which benchmark you use.) The one primary difference between real estate investing and equity investing, however, is liquidity. The liquidity issue It is very well known that investors are their own worst…

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Mohnish Pabrai: The Most Common Mistake Investors Make

Mohnish 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 have been highly impressive. $100,000 invested with Pabrai on July 1, 1999 (inception) was worth $1,164,600 at the end of 2018, a compound annual return of 13.4% net of fees. I’ve learned quite a bit from reading and listening to Pabrai’s advice over the years,…

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