“Do you want your drink hot or cold?” the server at the cafe asked Swami last weekend. We had decided to a try a new one. “Hot,” he said. And I said, “Cold.” Then she went on to another question. “A latte or a cappuccino for you, Sir?” she asked Swami. When he replied, “Latte,” … Read more
I had the opportunity to read two books over the past two weeks. The First One was ‘The Lazy Person’s Guide to Investing’ by Dr Paul Ferrell, a former investment banker with Morgan Stanley and a columnist later, with some really useful and simple advice for the individual investor. Here are some excerpts: “Investing really is very … Read more
“Abraham Lincoln once posed the question: ‘If you call a dog’s tail a leg, how many legs does it have?’ and then answered his own query: ‘Four, because calling a tail a leg doesn’t make it one,’” Buffett writes. Our broker friend Jigneshbhai was reading from Warren Buffett’s latest annual letter to his shareholders. He … Read more
Common Sense Investing: Sharing an excellent set of simple videos (less than 60 minutes) by Rick Van Ness. All that an average individual investor needs to know and follow. This is what the site http://www.financinglife.org/ says about these videos: “These short videos teach basic financial concepts to make it more likely that you’ll achieve common life … Read more
..and again!! That’s the title of a memo sent by the famous investor Howard Marks of Oaktree Capital to his clients recently. And it refers to how he is happiest writing when bull markets start going far, risk aversion disappears and there’s money all around inflating potential bubbles. It is quite a long memo listing … Read more
Came across an interesting conversation that the famous value investor Mohnish Pabrai had with Steve Pomeranz. He talks about what value investing is, why individual companies matter to him more than broader markets (though not advised for normal passive or ‘defensive’ investors), the importance of temperament which should be a strange mix of patience and … Read more
Some articles and talks that I found worth reading and listening to over last few days: Video: Why Bruce Berkowitz still likes stocks others hate? LINK Get Rich Slowly – Jason Zweig LINK Video: Mohnish Pabrai Talks at Google LINK
Often investors – specially those who call themselves defensive – can’t make up their mind on when to sell, as they have no particular reasons for doing so – except looking at market levels. A good answer to that comes from systematic and regular rebalancing (almost scheduled or using some similar discipline). Came across a … Read more
Some articles that I found worth reading this week: Pay Attention to Asset Allocation in this Bull Market LINK Active Value Investing: Is it really better? LINK Is the Product Attractive? Mental Models and Moats LINK The Seduction of Pessimism LINK Video Interview: The Contrarian Gene|Seth Klarman (~15 min) LINK Video Interview: Buffett, Jorge Paulo … Read more