Interesting reads 12 Oct 2013 – Margin of Safety, Behavioural Finance, Inversion, Nassim Taleb

1. First and Always: Margin of Safety – http://bit.ly/1b4WgS5
A simple and a nice article on margin of safety – quoting from Ben Graham, Walter Schloss and Seth Klarman – A simple one like ‘Graham also compared the earnings yield on a stock to the prevailing interest rates to find a margin of safety’.

2. 5 Examples of People Being Completely Irrational With Money – http://bit.ly/1c9lfqY
An excellent piece of reading on Behavioural Finance with experiments and researches done by major universities and organizations. Surprising to know how irrational we humans behave and make decisions in finance.

3. Invert, always Invert. 5 Inverted Questions for Maximum Investing Success – http://bit.ly/19HzUss
A nice read on the famous quote from Carl Jacobi, and re-quoted by Charlie Munger on Inverted thinking, with some verted and inverted questions to ask before making any investments

4. Risk Control: Nassim Taleb Versus Reality – http://bit.ly/19tzl3w
An interview with Nassim Taleb on Risk Control.

Interesting reads 13 Sept 2013 – Larry Sarbit, Seth Klarman, Margin of Safety

1. The Four Pillars of Successful Business Investing – http://bit.ly/15p4dRS
This article focuses on Larry Sarbit – Chief Investment Officer of Sarbit Advisory Services from Canada and his investment tenets – Four important pillars of successful business investing – Most of these are already heard from other great investors, but, worth reading again from his perspective
2. The Importance of Paying a Bargain Price – http://bit.ly/180pUnr
Another article on Larry Sarbit – on buying at a bargain price – a detailed look at Margin of safety from his perspective – Also has an interview video embedded from youtube
3. Margin of Safety. Not Used Enough. – http://bit.ly/1d9Gt5V
A simple and nice article on Margin of Safety – Definitions from various sources and especially I like the graphical representation
4. Seth Klarman’s Investment Framework – http://bit.ly/TWrbKv
An article that distills Seth Klarman’s investment framework – Risk and Downside check, Margin of Safety, Bottom up approach, Importance of research and Developing a framework for investing

Interesting reads 12 Aug 2013 – Irrational behaviour, Mohnish Pabrai presentation, Margin of Safety and Valuation guide

1. Irrational behavior and all justifications – Author talks about how irrationality drives markets with good examples, mostly seems true – http://bit.ly/14gDNwe
2. Mohnish Pabrai ISB Hyderabad July 2013 Presentation – A lengthy presentation by Mohnish Pabrai in ISB Hyderabad on investing – http://bit.ly/16CVBVx
3. The 3 Most Important Words in Investing – Why margin of safety is important in investing decisions. This article talks about an example by Warren Buffett’s investing in the company Data Documents. Given the uncertainity of predicting future business prospects, it is great to pick good stocks based on consistent current or even past performance, but with a margin of safety – http://bit.ly/15kBsk4
4. The Ultimate Guide to Stock Valuation – This guide from Jae Jun of Old School value is an excellent book on valuation. This talks about Why Valuation matters and emphasises that Valuation is an Art. This book discusses 8 key valuation techniques. Finally it suggests a list of books to read for every investor – http://bit.ly/11Zrish

Interesting Reads 24 July 2013

1. Margin of Safety and Uncertainty Defined by Graham
2. 10 Ways to Become a Better Investor
3. Warren Buffett on Economic goodwill

 

Came across an excellent business valuation by Seth Klarman in his rare available book “Margin of Safety”

Today I was reading a nice article on the subject in gurufocus.com and thought will share with you.

http://www.gurufocus.com/news/221448/seth-klarmans-three-methods-of-business-valuation