Monday, July 27, 2015

Giving

“You give but little when you give of your possessions. Itis when you give of yourself that you truly give. For what are your possessions but things you keep and guard for fear you may need them tomorrow? . . . There are those who give little of the much they have—and they give it for recognition and their hidden desire makes their gift unwholesome.
And there are those who give and know not pain ingiving, nor do they seek joy, nor give with mindfulness of virtue. . . . Through the hands of such as these God speaks, and from behind their eyes He smiles upon the earth.
You often say, “I would give but only to the deserving.”
. . . Surely he who is worthy to receive his days and his nights is worthy of all else from you. And he who has deserved to drink from the ocean of life deserves to fill his cup from your little stream.

See first that you yourself deserve to be a giver, and an instrument of giving. For in truth it is life that gives onto life—while you, who deem yourself a giver, are but a witness” – Khalil Gibran

Sunday, July 26, 2015

Entrepreneur's Library: Books to develop key skills ANDREI KOLODOVSKI

BECOME ENTREPRENEUR!


Friday, July 24, 2015

Antony Bolton - Investing against the tide

- Cash is King
Cash generation is the key

- Management talk
One of the main inputs for my investment process has been talking to the management; meeting management is ok but not for (mis)guidance; alignment of incentives. Recommend in management you trust

 - Valuations
Look at charts extending beyond two business cycles, credit spreads, earnings upgrades vs downgrades

- Sentiment

Falling prices create uncertainty and concern, rising prices create confidence and conviction. Successful investment is a blend of standing your own ground and listening to the market.

- Portfolio construction
Start with a small stake and increase stake as conviction builds

Valuations
- believe in relative valuations over discounted cash flow models

Special sits
- best recovery stocks are with those companies where new management comes

Technical analysis
- lets you cut losses and run profits; long term trend is up, hence optimistic bias is good; markets make v shaped returns at market tops and bottoms

Market timing
- Historical pattern of bull and bear markets (don't fall prey to turkey problem)
- indication of extreme optimism or pessimism are good contrarian bets
- Look at long term valuations P/B or P/FCF










Tuesday, July 14, 2015

S&P 500 Performance and Valuation


 
 
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S&P 500 Performance and Valuation


Source: JP Morgan




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Thursday, July 9, 2015

Singleton

CM: "We respect Henry Singleton for a very simple reason: He was a genius. Henry Singleton never took an aptitude test where he didn’t score an 800 and leave early. He was a major mathematical genius. Even when he was an old man, he could play chess blindfolded, at just below the Grand Master level. He had an awesome intellect, well into the top 1/1,000 of one percent. This was an extreme analytic. Of course, he did create a conglomerate because it was legally allowed at the time. He did it the way everybody else was doing it, he did it better, and he made a lot of money. When they ran out of favor, the stock went way down, he bought it all back for less than it was worth.
Of course, he died a very wealthy man. He was a totally rational human being in things like finance. What I found interesting about Henry Singleton, which has interesting educational implications, is that in watching both Henry and Warren invest and operate at the same time, we had two great windows of opportunity to examine human nature. Henry was very rational. He was quite similar to Berkshire in some ways. Henry never issued a stock option. He had certain commonalities with Warren that were just logical outcomes. What was interesting to me was how much smarter Warren was at investing money than Henry. Henry was born a lot smarter, but Warren had thought about investments a lot longer. Warren just ran rings around Henry as an investor even though Henry was a genius, and Warren was a mere almost-genius.”
WB: " Henry Singleton of Teledyne has the best operating and capital deployment record in American business.”
CM: about Singleton: “mile higher than anyone else …utterly ridiculous.”
“He was 100% rational, and there are very few CEOs that we can say that about.”
Arthur Rock once said about Singleton: ”He really didn’t care what other people thought.” Independence of thought and emotional self-control are the keys to making successful contrarian bets.
WB about Singleton: "he bought only a few things he understood well”