mardi 30 juin 2015

Klarman on 1999 market level

http://www.sec.gov/Archives/edgar/data/865827/000107261399000039/0001072613-99-000039.txt

TLDR For one thing, the financial markets have been so strong for so long that fear of market risk has mostly evaporated. People who used to hold bank certificates of deposit now maintain a portfolio of growth stocks. It is not really within human nature to comprehend that you may not know everything you think you know, and, further, that what you believe in could change on a dime. 
When your investments are backstopped by reasonably-priced tangible assets, the prospect of a change in sentiment is not very costly. If a building is no longer needed as a furniture retailer, maybe it would make a good warehouse. If you can't make money as a distributor, you can recover most of your capital by reselling your inventory.  

mardi 23 juin 2015

lundi 22 juin 2015

1987 lou simpson interview & checklist

http://www.berichcorp.com/wp-content/uploads/2014/01/lou-simpson-1987-profile.pdf

According to Simpson, his investment principles are as follows:
(a) Think Independently. "We try to be skeptical of conventional wisdom and try to avoid the waves of irrational behaviour and emotion that periodically engulf Wall Street. We don't ignore unpopular companies. On the contrary, such situations often present the greatest opportunities."
(b) Invest in High-Return Businesses Run for the Shareholders. "Over the long run appreciation in share prices is most directly related to the return the company earns on its shareholders' investment. Cash flow, which is more difficult to manipulate than reported earnings, is a useful additional yardstick.

Brooklyn investor on Brookfield asset management

http://brooklyninvestor.blogspot.ca/2015/06/brookfield-asset-management-bam.html