Data Diary

Thanks to Dean for referring me to Paul Graham’s site.  Quite a bit there that will get the grey matter kicking over.  While they are not investing rules as such – I like this list of 13 things to think about as a start-up.  For convenience, I have cut and paste it here – but [...]

It’s been a long time since we had anything new for the Investing Rules – so how about these from Max Otte, professor of Corporate Finance at Fachhochschule Worms in Germany, who gave a presentation at the Value Investing Seminar in Italy entitled Investing Buffett Style: A Simplified Approach. Likes Simple and Robust Valuation Approaches [...]

Via the Tischendorf Letter… Dickson G. Watts was the president of the New York Cotton Exchange from 1878 to 1880. His list of ‘Essential Qualities of the Speculator’ and ‘Laws Absolute” show the timeless value of his insight: 1. Self-Reliance. A man must think for himself, must follow his own convictions. George MacDonald says: “A [...]

Been meaning to jot these down for a while. Think I’ll make this a permanent post – add (or subtract) to it as ideas occur to me… 1) Research – never enter a position on a whim.  If you can’t point to the exact reasons for a position, then why be in it? 2) Risk [...]

I love this post from CXO Advisory – a summary of their ‘Eight Simple Rules from Financial Markets Research’ follows… #1. Broad financial market hypotheses explain what we have seen rather than predict what we will see. #2. The more sources you consult, the less likely you are to be wrong, or right. The average [...]

Interesting article out from the  Venture Populist on what they term as Hybrid Portfolio Theory – forget about the name, but the content is worth reflecting on. In short, they suggest heavily weighting a portfolio (something like 75% to 90% of assets) towards capital protection, liquidity and income – being treasury bills or the equivalent  - with the balance [...]

I was a happy reader of the various Book of Lists that were around in my childhood (I was just reminiscing about one such list tonight – the top ten recorded accounts of spontaneous combustion…that is the smouldering shoes variety).  In my continuing homage to their memory, here is Dennis Gartman’s 22 trading rules… 1. [...]

Basic principle is that the index is “an average that discounts everything” – builds all the market’s moods, information and supply/demand dynamics into its price.   The market then has two states – the bull and the bear – each of which has three phases 1) Bull market  (a) reviving confidence – the index starts [...]

Looking for candidates to buy, how about these criteria? 1) A growing business – business with wide and growing opportunities 2) Earnings certainty – a sustainable competitive advantage – strong pricing power 3) Mispriced opportunity – misunderstood business situation 4) Quality management/board – with a track record and significant insider or founder ownership and buying [...]

Tuen Daaisma (chief strategist at Morgan Stanley) signals to look for: 1) Valuations low – Shiller P/E ~10x and Price to NTA ~30% 2) Earnings at cyclical low – ROE below the long run average of 12.8% 2) Fixed income markets rallying while equity market is still heading lower 3) Copper price is bottoming out [...]