Warren BUFFETT“A public-opinion poll is no substitute for thought.”
Bernard BARUCH“Millions saw the apple fall, but Newton asked why.”
“Rule number one: Don’t lose money. Rule number two: Don’t forget rule number one.” - Benjamin Graham
(Znote: It is interesting to note that this quote is widely, and incorrectly, attributed to Warren Buffett. This is a classic case study how misinformation or delusion can fly like a virus all over the world. When you become the world’s richest man, a lot of smart says get attributed to you. Warren Buffett himself repeatedly said that this is not Buffett but Graham. Yet the world is not listening. In this case, Warren Buffett essentially re-phrased a saying by Benjamin Graham which was used to dramatize the essence of the net-net-cash investment approach.)
PIPE hedge funds are doing well in recent years. According to HedgeFund.net, over the 12-year period from 1995 through 2006, PIPE funds produced a compounded annual return of 27% versus 10% for the Standard & Poor’s 500. So what is PIPE? PIPE stands for Private Investment in Public Equity. PIPE hedge funds seek to purchase a company’s common stock at a discount from the price in the public market. They may also invest in a convertible preferred or a convertible note, but the conversion price will be at a discount below the price at which the stock sells in the public market. Although they seek to make our return through the common, preferred or convertible instrument, they always try to get warrants as a sweetener and these warrants have the potential to dramatically increase the rate of return on the investment.
Some say the reputation of JPMorgan Chase could be over-rated. The bank is spending money like no tomorrow to operate the political and publicity machine on its behalf. Some observers question JPM’s strong-armed tactics prying on customers and employees to garner profits. Trying to protect its unregulated and outsized trading profits in derivatives with immorally [...]
It was reported in China Economic News that BYD founder recently sold all his H share holdings, capitalizing the recent price run up due to Warren Buffett and Charlie Munger’s endorsement of the company. It was also reported BYD is now involved in a bitter legal battle of corporate espionage with Foxconn Technology Group.
Like Buffett, Graham was instinctively non-conformist–even more so in his exotic personal life than his professional one. (”A Mount Everest for women who liked a challenge: they met him and wanted to climb on top,” is how Schroeder oddly describes it.) Buffett–whose idea of a wild night seems to have involved reading Moody’s Manuals in [...]
By Srinivas Korada
This is a very well written book that tried to explain the classic confusion among the society “What makes people successful?”. Is it really the DNA or Luck or a combination of factors that we never really had the time to analyze.
When Charlie Munger recommended this to his audience in 2009 Wesco [...]
The specific criteria used were as follows:
# The stock prices are less than the net current asset value of the companies.
# During the past 12 months, the companies generated postive operating cashflow.
# The company has no meaningful debt compared to its cash position.
Here are the stocks from the screen:
Looking at the activities of the world’s top investors is one of the best way to dig for new investment ideas.
An intelligent investors must both examine other people’s smart ideas and think independently for themselves.