Monthly Archives: April 2011

Links of Interest – April 29, 2011

The Best Funds of the Last 20 Years – Table – – Some may be worthwhile hunting grounds for new, provided you understand their investment process and it is compatible with your own.

Horizon Asset Management – 1Q 2011 Commentary – Good discussion of the markets valuation based on book value. Here is the related conference call (excellent, as always).

Fairfax Releases Q1 Financial Data; Rocked by Japan – Discussion of Fairfax’s results from

Tweedy, Browne 1Q, 2011 Commentary

Yacktman 1Q, 2011 Commentary

The Nick Saban method of recruiting – ESPN – If you want a good investment outcome, you need to focus on your investment process. Here’s a look inside Saban’s highly successful recruiting process at Alabama.

Links of Interest – April 22, 2011

Monish Pabrai Lecture at Columbia Business School – March 2011 — – Includes a discussion of Pabrai’s purchase of a basket of net-nets in Japan.

Deliberate Practice – How to become an Expert — – Includes some good ideas on how to improve and get the most out of the time you spend on investing.

Audio books and podcasts – Numerous audio investment/business book and podcast suggestions from the members of

Investing for Higher After-Tax Returns – Lessons for Tax-Paying Investors from Warren Buffett, Index Funds, the Best-Performing Stocks over and 18-year Period, and Our Own Experience – Tweedy, Browne Company LLC

What’s the top performing stock over the last 25 years? – MarketWatch

Boeing 747 Checklist – Use it to stimulate the way you think about and organize your investing checklists.

Longleaf Partners Q1 Letter

Bill Nygren Q1 Commentary

Links of Interest – April 15, 2011

India’s Warren Buffett Reveals His Secrets (Part II) —

BusinessDay – StreetDogs: James Montier’s advice on the use of forecasts is not even to try – Investors continued reliance on earnings forecasts is reminiscent of the old-timer who, upon learning that the section in heaven for oilmen was full, started a rumor of oil in hell to make himself a spot, only to follow the crowd down to hell on the outside chance the rumor was true.

Blockbuster’s Largest Shareholder Calls Blockbuster Worst Investment Ever Made | Fast Company – Keep a checklist of investing mistakes to learn from both your own experience and that of others. Icahn admits that he failed to see that Blockbuster had too much debt and an inferior business model.

Top 10 Dying Industries – Real Time Economics – WSJ

Leucadia National Corporation 2010 Shareholder Letter – Leucadia has grown shareholder equity at 20% for over 20 years.

The Limitations of 13F’s

It has become increasingly easy to track the equity holdings of today’s leading investors. Numerous sites track their holdings based on disclosures made in 13F filings.

These 13F’s are an excellent place to search for new ideas. However, there are limitations to this approach if it is not part of a broader, well-concieved investment process.

In order to make big money in the stock market, you need to make meaningfully sized bets when opportunity presents itself. You also need to have the conviction to hold your positions if they decline in price, which all stocks are apt to do from time to time, sometimes by as much as 50%.

If your purchase was based entirely on the fact that a “guru” purchased it, you are less likely to 1) make a meaningful bet and 2) remain calm and not be rattled if the stock goes down 20%, 30% or even 50%.

There is no substitute for having your own thesis – based on your own reasoning – on why a stock is cheap and a good company. The market frequently overeacts to short-term news or problems and the guru won’t be there whispering in your ear to reassure you.

If you know what you are doing and have done your homework, these can be viewed as opportunities to add to your position.

In order to exploit time arbitrage – the discrepancy between the clearing price for the market’s short-term oriented price setters and the company’s long-term intrinsic value – you need to do your own work. 13F’s are a good place to look for ideas, but only the first step in a sound investing process.

Links of Interest – April 8, 2011

Investor extraordinaire speaks at Wharton – The Wharton Journal – News – Glenn Greenberg: “If you could make only one investment which you had to hold for the next 30 years, the proceeds from which you would live off during retirement, what characteristics would you look for?”

India’s Warren Buffett Reveals His Secrets —

The Resolute Way: Tom Stanley’s Investment Philosophy – Canadian investor Tom Stanley’s Resolute Growth Fund generated an average return of 29.63% from 1993 to 2006. He then took the fund private to avoid disclosure of his investing ideas.

John Griffin’s (Blue Ridge Capital) purchases of AMZN

I regularly follow about twenty or so value investors, including John Griffin of Blue Ridge Capital. I tend to focus on value investors who run a relatively concentrated portfolio and who invest in goog businesses, as opposed to net-nets, turnarounds, cigar butts, etc. I find it constructive to lay out their purchases in chart form to see how they enter and exit positions. It also gives me a perspective how they attempt to exploit Mr. Market and reinforces the patience required to wait for a fat pitch.

Links of Interest – April 1, 2011

Ajit for CEO? | Alice Schroeder: The Official Website

Peering Into Pfizer’s Future – Matthew Herper – The Medicine Show – Forbes

One on One with James Grant —

Interview with Scott Barbee Aegis High Yield and Aegis Value Fund |

Most recent Aegis 13F

30 Best CEOs –

Jensen Sees Strength In Small Portfolios –

Glenview Capital Management – 3-23-11