Happy Hour: Early Holiday Edition

I’m keeping things short this week to get an early start to the upcoming holiday. No, that’s not code for camping out for Black Friday deals. It does mean no posts next week too. Things will get back to a regular schedule in December.

Have a great Thanksgiving everyone! Continue Reading…

Buffett’s Method of Success

Buffett regularly makes the difficult, sound very easy. His knack for simplifying things, in a way a mass audience can understand, often gives the false impression that investing is easy.

“Simple, but not easy” best describes it.

Still, his simple messages get misinterpreted often. It leads some people to believe you can do it too without much effort. Others seem to think Buffett has a super secret formula that always spits out winners and he just refuses to share it. Continue Reading…

Happy Hour: Ex-Energy

Slicing and dicing up indexes are what fund companies do best these days because most can’t compete with the low-cost leader in the industry. A new story is told, almost daily, about how you might make money or avoid losing money with some new fund – then you get charged an arm and leg for that narrative. And that is how fund companies try to create demand out of thin air.

The new yarn being spun is the need to avoid one specific sector in the market. To tell the tale, the fund company uses hindsight to weave its story. Continue Reading…

Happy Hour: Tide Markets

Business Insider has a write-up on the latest Baupost quarterly letter. There are several great quotes in the article on the Dotcom bubble, doing nothing, the importance of cash, and a little bit about their process.

I pulled a couple quotes below that describe what it was like being a value investor during the Dotcom crash. Continue Reading…

Mario Gabelli’s Investing Philosophy

If you want better than average returns you have to be different from everyone else. I’m poorly paraphrasing Howard Marks, but it’s true.

Behaving better than everyone else, buying when valuations are low, having a longer holding period, and becoming an expert are all simple ways to be different. Simple, but not easy.

Mario Gabelli has this figured out. He shared his investing philosophy in a recent interview: Continue Reading…