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Tweaking the PEG ratio to show how cheap AMZN really is.

November 20, 2014 – Comments (10) | RELATED TICKERS: AMZN

By far, the most speculative holding in my portfolio is my position in Amazon.  Though, the company is a behemoth and is building a stronger moat every single day, the investment is speculative because the company doesn’t generate any GAAP net income.  Just even mentioning that I’m an investor in Amazon will likely generate responses from value hounds making me out to be someone that just broke some cardinal rule.  [more]

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Investment Styles of the Greats - Which is Best to Replicate?

November 09, 2014 – Comments (2)

How much do you actually need to know about an individual company before making an investment?  How much knowledge should you gain about a company in order for it to be in your portfolio?  [more]

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The Importance of Purchase Price

October 22, 2014 – Comments (17) | RELATED TICKERS: TUP

About a year ago I wrote a post that highlighted the importance of selecting high quality stocks when making investments.  High quality companies – those that are able to return high profits on shareholders equity – can help remove the difficulty of determining a good price to pay.  Even if you buy a high quality at a price slightly above a fair value, it will likely still achieve adequate returns.  [more]

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A Steel Producer with a Wonderful Track Record - Trading for Half Price

October 22, 2014 – Comments (69) | RELATED TICKERS: GGB , PKX

About 6 months ago, I finally got around to reading the Dhandho Investor, written by Mohnish Pabrai.  While the book taught me several very important lessons for compounding a portfolio via value investing, two points that stood out were 1) invest in distressed industries (or companies) to yield wonderful returns and 2) don’t be afraid to clone.    [more]

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My [attempted] unbiased assessment of IBM

October 20, 2014 – Comments (8) | RELATED TICKERS: IBM , ACN , CTSH

I think one of the most important things an investor can do is to critique their own investments.  As I have personally found out with many of my own investments, I can (unfortunately) get attached to a stock I own and try to justify my ownership even when the writing is on the wall.  Knowing this about myself, it’s important to at least make an attempt to rationalize why I own a particular stock, and do my best to ignore the psychological factors.  Presenting a strong critique, or more bluntly, playing devil’s advocate, can help me decide whether I should stick with an investment or not.  Sometimes it can help me unload an investment mistake (though sometimes it can simply leave me with a headache).  [more]

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