Posts Tagged ‘Intrinsic Value’

Soros’ Alchemy – Chapter 4

by
March 30, 2016

Seth Klarman of Baupost wrote in a 1996 Letter that one should always be cognizant of whether seemingly different investments are actually the same bet in order to avoid risk of concentrated exposures. In other words, the task of risk management involves identifying (and if necessary, neutralizing) common risks underlying different portfolio holdings. One such […]

Read more →

Soros’ Alchemy – Chapter 1, Part 3

by
November 20, 2015

Continuation in our series of portfolio management highlights from George Soros’ Alchemy of Finance – Chapter 1, Part 3: Soros introduces the theoretical foundations of reflexivity. Psychology, Intrinsic Value “What makes the participants’ understanding imperfect is that their thinking affects the situation to which it relates…Although there is no reality independent of the participants’ perception, there […]

Read more →

Soros’ Alchemy – Chapter 1, Part 1

by
November 7, 2015

Portfolio management highlights from George Soros’ Alchemy of Finance – Chapter 1: The Theory of Reflexivity. In part 1, Soros discusses the concept of price equilibrium, supply and demand, and why market prices fluctuate. Intrinsic Value “The concept of an equilibrium is very useful. It allows us to focus on the final outcome rather than on […]

Read more →

Soros’ Alchemy – Preface & Intro

by
September 30, 2015

Dear Readers, apologies for the length of time since our last article. It’s been a busy year – got married, growing the business, grappling with a large position ruining otherwise healthy year-to-date performance – you know, all the usual life items. We have all experienced situations when the fundamentals of a business are moving in […]

Read more →

Wisdom From James Montier

by
February 1, 2014

I have a confession to make: I have a huge crush on James Montier. I think the feeling might be mutual (see picture below, from a signed copy of his book Value Investing: Tools and Techniques for Intelligent Investment.) Jokes aside, below are some fantastic bits from his recent essay titled “No Silver Bullets.”     […]

Read more →

Baupost Letters: 1998

by
May 25, 2013

Continuation in our series on portfolio management and Seth Klarman, with ideas extracted from old Baupost Group letters. Our Readers know that we generally provide excerpts along with commentary for each topic. However, at the request of Baupost, we will not be providing any excerpts, only our interpretive summaries, for this series. Hedging, Opportunity Cost, […]

Read more →

Howard Marks’ Book: Chapter 12

by
March 13, 2013

Continuation of portfolio management highlights from Howard Marks’ book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Chapter 12 “The Most Important Thing Is…Finding Bargains” Definition of Investing, Portfolio Management, Position Review, Intrinsic Value, Opportunity Cost “…‘investment is the discipline of relative selection.’” Quoting Sidney Cottle, a former editor of Graham and Dodd’s Security […]

Read more →

An Interview with Bruce Berkowitz – Part 2

by
January 26, 2013

Part 2 of portfolio management highlights extracted from an August 2010 WealthTrack interview with Consuelo Mack (in my opinion, WealthTrack really is an underrated treasure trove of investment wisdom). Be sure to check out Part 1. AUM, Compounding, Subscription, Redemptions “MACK: There’s a saying on Wall Street…that size is the enemy of performance… BERKOWITZ: …we think about […]

Read more →

Buffett Partnership Letters: 1966 Part 1

by
January 24, 2013

Continuation of our series on portfolio management and the Buffett Partnership Letters, please see our previous articles for more details. Conservatism, Volatility “Proponents of institutional investing frequently cite its conservative nature. If ‘conservatism’ is interpreted to mean ‘productive of results varying only slightly from average experience,’ I believe the characterization is proper…However, I believe that conservatism is […]

Read more →

An Interview with Bruce Berkowitz – Part 1

by
January 20, 2013

Bruce Berkowitz of Fairholme Funds manages $7Bn+ of assets (this figure is based on fund prospectus disclosures, may not be inclusive of separately managed accounts) and was once named Morningstar’s Manager of the Decade. As you are probably aware, since 2010, it’s been a trying couple of years for Berkowitz. His fund was down 32% […]

Read more →

Howard Marks’ Book: Chapter 6 – Part 1

by
December 20, 2012

Continuation of portfolio management highlights from Howard Marks’ book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Chapter 6 “The Most Important Thing Is…Recognizing Risk” Risk, Intrinsic Value, Psychology “Risk means uncertainty about which outcome will occur and about the possibility of loss when the unfavorable ones do.” “It’s also ephemeral and unmeasurable. […]

Read more →

Howard Marks’ Book: Chapter 5 – Part 4

by
November 24, 2012

I’m finally back from vacation. In light of recent market volatility and “risk,” let’s kick off with a continuation of portfolio management highlights from Howard Marks’ book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Chapter 5 “The Most Important Thing Is…Understanding Risk” Risk, Intrinsic Value “…risk of loss does not necessarily stem […]

Read more →

Wisdom from Steve Romick: Part 2

by
August 24, 2012

Continuation of content extracted from an interview with Steve Romick of First Pacific Advisors (Newsletter Fall 2010) published by Columbia Business School. Please see Part 1 for more details on this series.   Capital Preservation, Conservatism “Most of our financial exposure is on the debt side. We were able to buy loans with very strong collateral, […]

Read more →

Howard Marks’ Book: Chapter 3

by
July 23, 2012

Below is a continuation of portfolio management highlights from Howard Marks’ recent book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Chapter 3 “The Most Important Thing Is…Value”: For anyone who has purchased a security too soon while the price continued to decline, I would highly recommend reading the last few pages of […]

Read more →

Buffett Partnership Letters: 1961 Part 3

by
June 16, 2012

This post is a continuation in a series on portfolio management and the Buffett Partnership Letters. Please refer to the initial post in this series for more details. For those interested in Warren Buffett’s portfolio management style, I highly recommend the reading of the second 1961 letter in its entirety, and to check out our […]

Read more →

Klarman-Zweig Banter: Part 1

by
May 2, 2012

Seth Klarman of Baupost is a great investor. Jason Zweig is a great writer. When combined, we get a great Klarman-Zweig Interview published Fall 2010 in the Financial Analyst Journal (Volume 66 Number 5) by the CFA Institute. Here is Part 1 of tidbits from that conversation. Part 2 is available here. Volatility Graham and Dodd’s […]

Read more →

Buffett Partnership Letters: 1958 Part 2

by
April 5, 2012

This post is a continuation in a series on portfolio management and the Buffett Partnership Letters. Please refer to the initial post in this series for more details. Selectivity, Hurdle Rate, Risk “The higher level of the market, the fewer the undervalued securities and I am finding some difficulty in securing an adequate number of attractive investments. I […]

Read more →