Top posts of 2008

Few links from the article titled "top posts of 2008" at nurseb911.com.

To read the complete post: http://www.nurseb911.com/2008/12/top-posts-of-2008.html

I found the following two links from the posts good:

The Art of Discipline was featured in a BusinessWeek article and spoke to my belief that discipline is an important aspect of any individual investors’ long-term strategy.

Cashflow is King provided useful insights into why cashflow is an important factor to examine when analyzing a company and what cash is used for by businesses to pay their bills.

Click here to read the complete article....

Most Common Investment Mental Pitfalls

The Top Ten Mental Errors Are:

1. You Know Less Than You Think You Do

2. Be less certain in your views, aim for timid forecasts and bold choices

3. Don’t get hung up on one technique, tool, approach or view – flexibility and pragmatism are the order of the day

4. Listen to those who don’t agree with you

5. You didn’t know it all along, you just think you did

6. Forget relative valuation, forget market price, work out what the stock is worth (use reverse DCFs)

7. Don’’t take information at face value, think carefully about how it was presented to you.

8. Don’’t confuse good firms with good investments, or good earnings growth with good returns

9. Vivid, easy to recall events are less likely than you think they are, subtle causes are underestimated

10. Sell your losers and ride your winners

Link found at: http://www.simoleonsense.com/james-montier-on-most-common-investment-mental-pitfalls/

Complete article: http://illusion-of-knowledge.behaviouralfinance.net/Mont02.pdf

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How India Avoided a Crisis - New York Times Article

“All lending to individuals is based on their income. That is a big difference between your banking system and ours.” She continued: “Indian banks are not levered like American banks. Capital ratios are 12 and 13 percent, instead of 7 or 8 percent. All those exotic structures like C.D.O. and securitizations are a very tiny part of our banking system. So a lot of the temptations didn’t exist.” - Ms. Kochhar ,ICICI Bank.

There was also another factor, perhaps the most important of all. India had a bank regulator who was the anti-Greenspan. His name was Dr. Y. V. Reddy, and he was the governor of the Reserve Bank of India. Seventy percent of the banking system in India is nationalized, so a strong regulator is critical, since any banking scandal amounts to a national political scandal as well. And in the irascible Mr. Reddy, who took office in 2003 and stepped down this past September, it had exactly the right man in the right job at the right time.

Complete Article: http://www.nytimes.com/2008/12/20/business/20nocera.html?_r=3&scp=4&sq=Nocera&st=cse

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Buffett on 0% interest rates

Buffet's note about US Treasury selling $32 billion in 4 week bills at yield of 0%:

"This should be bullish for Berkshire. With great foresight, I long ago entered the mattress business in a big way through our furniture operation. Now mattresses have become fully competitive as a place to put your money, and sales will soon take off."

Source: http://postcards.blogs.fortune.cnn.com/2008/12/09/power-point-buffett-bets-on-mattresses/

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Video Collection: Value Investor Conference @ Darden Business School

A must watch collection of videos about value investing!! Its from value investor conference at Darden Business School.

All the presentations discussed in the videos are available: here

Whitney Tilson, T2 Partners




Panel Discussion








Part 6
Part 7
Part 8
Part 9
Part 10
Part 11


Source: http://www.simoleonsense.com/video-collection-value-investor-conference-darden-business-school/

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Wisdom Of Great Investors (PDF)

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
Benjamin Graham. Father of Value Investing

“History provides a crucial insight regarding market crises: They are inevitable, painful, and ultimately surmountable.”
Shelby M.C. Davis. Advisor and Founder, Davis Advisors

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.”Peter Lynch. Legendary Investor and Author

“Despite inevitable periods of uncertainty, stocks have rewarded patient,
long-term investors.”
Christopher C. Davis. Portfolio Manager, Davis Advisors

“Be fearful when others are greedy.Be greedy when others are fearful.”Warren Buffett. Chairman, Berkshire Hathaway

"The basic question facing us is whether it’s possible for a superior investment manager to underperform....The assumption widely held is ’no.’ And yet if you look at the records, it’s not only possible, it’s inevitable.”Robert Kirby. Founder, Capital Guardian Trust Company

“The function of economic forecasting is to make astrology look respectable.”John Kenneth Galbraith. Economist and Author

“You make most of your money in a bear market, you just don’t realize it at the time.”
Shelby Cullom Davis. Diplomat, Legendary Investor and
Founder of the Davis Investment Discipline

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"We hope this collection of wisdom serves as a valuable guide as you navigate an ever-changing market environment and build long-term wealth." - Davis ADVISORS

Click on the link to read the "The Wisdom of Great Investors" - Insight from some of History's Greatest Investment Minds.

http://manualofideas.com/files/wisdom_of_great_investors.pdf

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