Mr. Market, a remarkably accomating fellow, will sell you his share of IBM for a little over 12x last years earnings, and about 10.5x this years EPS estimates. [more]
I recently read a wonderful book called “The Art of Thinking Clearly” by Rolf Dobelli. The book is a collection of 100 different human biases and tendencies that impair us from making rational decisions. I HIGHLY recommend you check it out. [more]
As I mentioned in a previous blog post, although the Fool is an awesome site, the 0-100 player rating system doesn’t do a very good job of showing you which players are really great investors, and which are just really good at “gaming” CAPs points. In order to more accurately track performance, I created a virtual fund at Marketocracy.com, and will be posting my virtual holdings/performance every 3-6 months. I would encourage other Fools to do the same. IMO Marketocracy is a great supplemental scorecard to the Fool, but is certainly not a replacement. (They have no community)I have two reasons for posting these: 1) To facilitate learning and encourage the exchange of investing ideas on the Fool. And 2) To keep myself honest, and have a proven record of performance (positive or negative) over the long-term.
Also, the reason that I’m going to be concentrating on my virtual portfolio, and not my real-life portfolio, is because I will actually be winding down my real-life portfolio in the coming months. I’ll be starting school in a few weeks, and I think I can get a better, safer return on investment on my education than my stock portfolio. I will probably exit most of my real-life positions over the next year or so, and reallocate that capital towards tuition. No new real-life positions will be added until after graduation in 2.5-3 years. [more]
Many investors utilize checklists to help filter investment ideas. Despite the wisdom from Mohnish Pabrai, and other investors, up until today, I had never really made a proper checklist. However, after reviewing my notes from Whitney Tilson's new book "The Art of Value Investing", I finally decided to give it a go. [more]