Old School Value Nugget Fest (May 16th Edition)
Markets & Investing
- James Holzhauer: Guide to Optimizing Investment Bets for Maximum Portfolio Growth (Value Stock Guide)
“James Holzhauer plays to maximize profits. This is evident when you watch him in the show. Let’s see how his strategy transfers over to investing.”
- ‘Temporary Insanity’ Returns To Wall Street (The Felder Report)
“As Templeton points out, ‘when there are no earnings’ you must look to sales as a unit of measure for the purposes of valuation. Using this methodology, Templeton clearly suggests that for investors to pay ’20 times sales’ they must be insane… In that light, below are a few notable multi-billion-dollar IPOs this year that currently trade above that lofty mark.”
- Looking for the Next ROIC Machine (Intrinsic Investing)
If any of you watched our recommended valuation video from Tim Koller, this is a nice follow-up on the importance of ROIC being above WACC, and how to think about forecasting it.
- Spring 2019 Graham & Doddsville Investment Newsletter (Graham & Doddsville) [PDF]
- Warren Buffett’s best quotes 2019 shareholders meeting (Forbes)
Number 31: “If you aren’t happy having $50,000 or $100,000, you’re not going to be happy if you have $50 million or $100 million.” Warren Buffett
- What Warren Buffett’s Teacher Would Make of Today’s Market – (Jason Zweig, WSJ)
How well have “Security Analysis” and “The Intelligent Investor” aged?
- A Conversation with NYU Professor Aswath Damodaran Elm Funds (Elm Funds)
Thoughts on indexing and equity analysts; price vs. value; factor investing vs. risk variables; and more.
- Aswath Damodaran on the Meb Faber Podcast
Same guy, different conversation. Some thoughts on valuing AMZN, AAPL, UBER; stock buybacks, etc. An enjoyable listen.
- Charlie Munger: I’m Ashamed On Missing Out On Google and, Beware of IPO Unicorns (The Acquirer’s Multiple)
Yahoo Finance interview with excerpt. “We could see, if we had looked carefully at our own companies, that their advertising was working way better than other advertising. Just we weren’t paying enough attention.”
- Interview with Bruce Flatt (Oak Tree)
- Strong Opinions Loosely Held Might be the Worst Idea in Tech (The Glowforge Blog)
Quote of the Week
“If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on them with vigor.
Image of the Week