Monthly Archives: November 2008

Buyer Beware – Pitfalls of Value Investing

With the current state of the economy, there are many seemingly great deals available for investors who are willing to navigate the rough waters of the market. However, sometimes we can get caught up in our quest for the dollar … Continue reading

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Read Financial Footnotes, Invest Safely

Financial footnotes are like the fine print on an aspirin label. You need to read the fine print to realize that aspirin side effects include gastrointestinal bleeding. Financials footnotes are to companies as fine print are to drugs. For companies, … Continue reading

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Warren Buffett on Market Fluctuations

From 1997 Letter to Shareholders: A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy … Continue reading

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Sitting on cash… is better than doing something dumb!

There is a good piece in a must-read book “The Investor’s Dilemma”, by Louis Lowenstein . “Sitting on cash is better than doing something dumb. For value investors who invest in companies one by one, what happens when prices are … Continue reading

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Learning nothing, forgetting everything

In a great book “Benjamin Graham on Value Investing”, the author, Janet Lowe, writes on Ben Graham’s conviction of not-very-efficient markets. ““Investing in a market where people believe in efficiency” Buffett scoffed, “is like playing bridge with someone who’s been … Continue reading

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John Maynard Keynes Revisited

“The market can remain irrational longer than you can remain solvent.” – John Maynard Keynes

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Does Valuation Matter In Short Run?

by Sham Gad The markets are going through a historic transformation. During this process, all rationality goes out the window. Consider what happened to the tripling in price of credit swaps covering Berkshire Hathaway for a bet they made that … Continue reading

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