Posts Tagged ‘value investing’

Wharton Professor and author Jeremy Siegel says that corporate earnings are “extraordinary”, and that he’s never seen stocks selling at such attractive values compared to bonds. Siegel tells Bloomberg that risk aversion is the highest he’s ever seen in the market. “I’ve never seen such favorable valuations of stocks versus bonds,” he says. “I’ve seen cheaper stocks — we’ve seen stocks [trading at] single-digit P/E ratios. But relative to the bond market, you have to go back to the

I have gone through this book one time and it struck me that everyone should read this so we can learn to be optimistic again.  Less about politics and ideology and more about economic history, "The Rational Optimist" shows why the good old times weren't that good after-all! An investor needs to

In this short interview, Bill Miller of Legg Mason Value Trust fame discusses two important things about value investing: Psychological pain and Technology stocks are for value investors too. 1. Psychological Pain:  It's hard because buying at prices below value is typically a contrarian behavior and psychologically difficult if not painful for most people. 2. Value in Technology Stocks.  Buffett is famous for not buying "tech" because it changes too fast.  Miller points out that throughout history new technology companies that survive

These are excerpts from a Morningstar interview with the great value investor - Mason Hawkins.  Notice that Hawkins focuses most on describing a process.  The basic tenants of the process - buying stocks at significant discounts to appraisal value, long-term outlook and management of their companies as partners - never change, but built into the process is continuous learning and improvement.   In this paragraph he talks about this continuous learning and how the employees and affiliates of the investment company own the same investments

Wall Street has it wrong when looking at the "Quality of Management". Most investors and analysts believe that "capability" - the degree to which managers have the ability to do what they set their minds to - is the dominant driver of quality.  We think that even when they are right about the capability of the people, capable managers with perverse explicit and implicit incentives may apply their considerable skills to undermine value creation - even without intending to.  For us how well the

In Institutional Investor, Julie Segal, talks about the likely long-term effect of two horrible bear markets in 10 years on the psyche of American savers.  In short - we are freaked out and afraid to invest in the stock market.  Unfortunately, the more certainty we all need, the more we'll allocate our portfolios to bonds, and the lower our ultimate life-time return will be.  Successful investing is less intellectual than it is emotional, and freaked out people make terrible

HT: How Fair Value and Target Price Differ - Morningstar - Ask the Analyst Shared via AddThis We are passionate about value investing at Rapidan's Berk Advisory, where we manage separately managed accounts for our clients. We provide comprehensive, institutional level investment portfolios of stocks - not funds - but direct ownership of stocks of great companies. These services have not been generally available to individual investors with small amounts to invest. We've opened up the investment secrets