Interesting reads 05 Oct 2013 – Warren Buffett, Joel Greenblatt, Behavioural Finance, Contrarian Investing


1. The secret to Buffett’s success – http://bit.ly/GzLglU
This article brings out Buffett’s investment secret with reference to the paper titled ‘Buffett’s Alpha’ published by NYC professors. The paper concludes the secret to be cheap source of funds that is the ‘float’ from insurance business – that is leverage and identifying great businesses, buy and hold strategy.

2. Joel Greenblatt Magic Formula Stocks in India – http://bit.ly/16lkt6X
Analysts from Ambit capital have done a research on Joel Greenblatt’s Magic formula in Indian markets for past decade and more – Looks like it works. Check it out.

3. Behavioral Finance Presentation: Your Brain on Stocks – http://bit.ly/18BoLXg
A nice presentation on Behavioural Finance. I liked the slide 7 where the herd mentality becomes heard mentality and how people interpret. And statistics on slide 8 is interesting. And slide 30 – a simple explanation on the market cycle.

4. The Importance of Focusing on Absolute Performance – http://bit.ly/18Ypy3A
A short and simple article by Lanber that explains how by focussing on relative performance with markets may divert your attention towards short term mentality and hide focus on absolute long term performance.

5. Thinking Differently: The Most Important Contrarian Behavior – http://bit.ly/18TJPqJ
This article talks about contrarian thinking in investing, more about acting in a contrarian way. Check out the links to other great articles too.

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