Summary Use of model/screens can be helpful but have both advantages and disadvantages. Some of the disadvantages are: incorrect data, value traps, falling knives, high concentrations, etc. An important but ignored problem is that of incorrect data. Even Bloomberg gets it wrong! Examples from author's personal experiences highlight the issues investors should keep … [Read more...]
Mohnish Pabrai
Mohnish Pabrai is a value investor who has said that he has copied Warren Buffett's approach and has used it to huge success. In this post you can find interviews and videos featuring him. … [Read more...]
Reducing position in Xerox
Yesterday I reduced position in the stock at $11.25. This reduction was done to reduce the risk of a potential value trap. The stock remains cheap and the company could have a bright future under an activist or if taken over by another company. Current management is disappointing to say the least. Despite poor performance, they continue to receive fat bonuses as I … [Read more...]
Newsletter – March 2015
“High debt levels, whether in the public or private sector, have historically placed a drag on growth and raised the risk of financial crisis that spark deep economic recessions.” - The McKinsey Institute March was an outstanding month for the strategy as the portfolio closed up 1.8% vs -1.7% for the S&P 500. For the quarter, FatAlpha is up 6.5% vs 0.4% for the … [Read more...]
How the Stock Market Works (1952)
An old but classic and helpful video on how the stock market works. Simple but effective! … [Read more...]
