Catching Up On Some More Links

Farnam Street-The World Is Much More Interesting Than Any One Discipline.

Wexboy-Tetragon Ready To Be A Star.

Sahara Investing-The Luxury Goods Market.

Oddball Stocks-Thoughts On Quantative Value Investing.

Valueinvestingblog.net-Investing In Japan: Late To The Party.

Valuewalk-Insurance Companies, Where Buybacks Are Key: Travelers.

Farnam Street-Mastery.

OTC Adventures-Value Investing Strategy And Unlisted Securities Part 1.

Whopper Investments-The Best Values Are Over The Counter Stocks So Is $OTCM A Great Value Too?

Ragnar Is A Pirate-Changing 13D’s At Trinity Place Holdings.

The Aleph Blog-On Insurance Investing Part 2.

Quotations Page-Persistence Quotes, my favorite is the Calvin Coolidge One:

Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.

Absoutely love that quote.

Mises.org-Cartman Shrugged: The Invisible Gnomes and The Invisible Hand In South Park.

CSInvesting-The Secret To Investing Success (Munger Tip).

Valueconferences.com-Adib Motiwala: Your Instructor At Small Cap Investing Summit 2013, hour long interview.

Seeking Advice, Offering My Services, And Sharing Links

Seeking Advice

If you have ever read the goals page on this blog you know that I plan to open up my own investment partnership or work at a value fund as an equity research analyst as soon as my health gets completely better.

My health is still not completely better so opening my own firm will have to wait, and unless I can get an outsourced research analyst job where I can stay at home that also will have to wait a bit longer.

Thus far I have sent emails to some value investment firms showing them my work in the hopes of becoming an outsourced research analyst for their firms and have so far received no replies.  Thinking about getting some packets together and sending physical information to them because I am sure these firms get hundreds or thousands of emails per day.

As I have been gaining experience, knowledge, and confidence in my ability to analyze companies, I have been looking more and more into what I can possibly do to make some money while I wait for my health to get completely better.

So far I have come up with two ideas while I wait to open my firm:

  1. Starting some kind of research firm where I could sell my ideas and analysis articles to value investment firms, or work for them from home doing research on specific companies that they want me to look into.
  2. Some kind of consulting firm where I could offer my services to local businesses offering to analyze their businesses to see where they could maybe cut costs, and give them some ideas about how they could become more profitable.

So far I have gone over the various pros and cons of both and wanted to ask if any of you have any experience doing either of those two ideas above, what those experiences have been like, and if you might be able to offer any advice about potentially starting one of those firms.  Also if you might have any other ideas of how I could put my knowledge to use while I wait for my health to get better please let me know.

If any one of you are looking for someone who loves to research and dig deep into companies please let me know as I would be very interested in learning about your company and hearing those opportunities as well.

Any advice or help would be very much appreciated as I think I could be an asset to companies and help make them money.

Weekend Reading Links

Greenbackd-The Brick Valuations and Analysis Report.

Oddball Stocks-The Problem With Linear Thinking.

CNN Money-The Best Investor You Have Never Heard Of.

Geoff Gannon at GuruFocus-What Is Your Investing Goal?

Geoff Gannon at GuruFocus-How Would Warren Buffett Invest If He Was Starting Over Today?

Farnam Street-General Failure.

Old School Value-How To Invest In The Stock Market-Reflections.

Barel Karsan-Insight Into A Buffett Moat.

Microfundy-Buybacks Vs Dividends.

OTC Adventures-IECH Corporation.

Weekend Reading Links From Geoff Gannon, Oddball Stocks, The Value Perspective, Farnam Street, Pick The Brain, and Others

While I have to go back over all of the annual, quarterly, and proxy reports of the company I am researching to get my notes back on the article I am preparing to write, here are some weekend reading links.

Benzinga-Cash Flow Sheninigans: Salesforce.com Edition

Value and Opportunity-Gronlandsbanken AB: Sleepy Eskimo Bank, Or Moat Company With Natural Resource Option

The Value Perspetive-Value Investors Distinguish Between Safety And The Perception Of Safety

25i1.com-Charlie Munger On Mistakes

Oddball Stocks-A Profitable Cash Box Or A Cash Box With Profits?

Pick The Brain-3 Ways To Reduce The Chances That You Are Deluding Yourself

Geoff Gannon-What’s Your Investing Routine?

Farnam Street-The Role Of Skill And Luck

Farnam Street-What We Suffer From Today

The Value Perspective-Investors Are Often Unable To Visualise Potential Upsides For Struggling Sectors Such As Retail

Update and Links From Mark Lin, Oddball Stocks, Guru Focus, Farnam Street, ValueFolio and Old School Value

The most recent company I was researching turned out to be another no go as I found it to be overvalued at the low end by as much as 30%.  Since then I have turned my attention to Dole and have been getting my updated article on them prepared.  I have already written a portion of the article and with Dole releasing its most recent results later today I should be all good to go and have the whole article up by early next week.

Until then here are some links.

The One Thing That Can Kill Your Portfolio

ROE, ROIC, and CROIC

All Roads Lead To Rome: Bridging the Graham Buffett Divide

Alternative Information Sources

Analyzing Working Capital-The Key To Successful Investing In Net Nets

Why Net Cash Is The Most Misleading Indicator Of Balance Sheet Strength

Characteristics of Value Stocks and Value Traps

The Principle of Incomplete Knowledge

Charlie Munger…..”If I Were Teaching Business School”

Psych Plays and Bayesian Probability

Weekend Reading Links

With all the research I have been going lately I have gotten way behind on posting links so here are a bunch that I think are very good.

Atul Gawande: Excellence Is Recognizing Details, Failures

The Price Of Paying Attention

How Not To Run A Hedge Fund: Geoff Grant Edition

Advice From Jeff Bezos

How Did R.A. Dickey Master The Knuckleball

Jason Zweig Interviews Seth Klarman

How Did I Come Up With My 16 JNets

What Drives Operating Metrics?

Free Ebook: 115 Profitable Investing Ideas

How Buffett Made Money In Bad and Volatile Markets

CSInvesting Update, Checklist Presentation By Mohnish Pabrai, How To Win In Investing, Leon Cooperman On How To Get Better, and The Benefits of Stress

I have finally found another company to do a full research article on and will have it up as soon as possible.  I am still doing research and waiting for its next quarterly results to come out this week so I can value the company with updated numbers so it will probably a little while until I write the article up.  Up to this point the company looks promising and as of its last quarterly results that came out in June, it is selling for less than the reproduction value of its assets, with about 50% of its value coming from cash and short term investments, and no debt.

CSinvesting update as John has now moved the blog over to csinvesting.org and the blog is up and running.  It also looks like the blog is going to become more focused on investing as well.

Checklist Presentation By Mohnish Pabrai from Hardcore Value where Mr. Pabrai uses examples from Graham, Buffett, Munger, and others to build a checklist.

“You Don’t Win By Predicting The Future, You Win By Getting The Odds Right” is another article from Farnam Street on how to win in investing.

Leon Cooperman On Hedge Funds, Investment Outlook, and Life, includes an hour long presentation.  Page is from Market Folly.

The Surprising Benefits Of Stress

Until next time.

New Blog, National Western Life Analysis, Stretching Yourself To Learn New Things, Notes From Meeting Value Investor Mohnish Pabrai, And CSInvesting News

After yesterdays detour and the help from your comments in the comments section, I will now get back to posting links.  A big thanks to all readers who helped out yesterday clarifying the situation, I really appreciate it.

The Red Corner Blog.  For those of you who might not know, Red has been very helpful to me in the past on Whopper Investments blog, and more recently on this site as well.  I recently found that he has his own blog where he analyzes and values companies.  His work is exceptional and I highly recommend that everyone visit his site, especially if you need help with the more technical aspect of evaluating companies, which is an area where I currently struggle.  He also answers a lot of questions from readers as well so make sure to read the comments on his writings as well.

Student of Value has come up with another great analysis piece, this time on National Western Life, as always highly recommended.

Stretching Yourself To Learn New Things is another great write up from Farnam Street.

Notes From Value Investor Mohnish Pabrai is from Perfect Research that contains Mr. Pabrai’s thoughts on a wide range of topics in investing.

I wanted to let everyone know who might be clicking on the CSinvesting links I have, that I got an email from John the other day after noticing that his site is down currently.  He said that he is currently in the process of moving his blog to a self hosted site, while also recovering from surgery.  Get well John, no need to rush back after major surgery.

I am still struggling to find another company to research and hope to find one soon.  I suspect that I am not alone in finding it hard to find companies to research since the market has been going up quite a bit?

Why Smart Brains Make Dumb Decisions, Learning, 5 Reasons To Doubt My Analysis, Munger On Deferred Tax Liabilities And Intrinsic Value

I have found another company to look into and I am going to start reading its annual report today.  I will update you if I think the company is worth doing an entire article on.  Now onto the links.

Why Smart Brains Make Dumb Decisions is an article from the New York Times detailing what makes our brains over and underestimate the amount of danger involved in a task.

When It Comes To Learning Depth Beats Breadth and What’s The Best Way To Begin To Learn A New Skill are both quick thoughts from Farnam Street about learning.

5 Reasons To Doubt My Analysis is an article from Old School Value, written by Daniel Sparks of ValueFolio, about why we should all doubt other people’s analysis, and why we should all do our own analysis when it comes to making investment decisions.

Munger On Deferred Tax Liabilities and Intrinsic Value is a very technical discussion on those two topics and how to incorporate some of the information into valuations.  The site also has a couple links to Seeking Alpha articles on the subject as well.  I have to admit that some of the stuff goes over my head and the highly technical aspect of investment analysis is an area where I know I need to get a lot better at.

Up next will be some more links until I decide whether I am going to do an entire write up on the company I start researching tonight.

How to Train Your Mind to Remember Everything, Nassim Taleb, a Blueprint for Being a Lousy Investor, Why Your Already Good Enough, and Tips to Boost Confidence

How to Train Your Mind to Remember Anything is an article by Joshua Foer, the author of Moonwalking With Einstein: The Art and Science of Remembering Everything where he talks about some of the tips in his book.

Why Your Already Good Enough is an article from Pick The Brain on why you do not have to wait until some time in the future to achieve your goals, and how you are probably good enough to achieve them now.

Taleb: The Fooled By Randomness Effect and the Internet Diet? is another article from Farnam Street that has Mr. Taleb’s thoughts on information overload, overconfidence, and how they are effecting the modern world.

5 Simple Tips to Boost Confidence is another article from Pick The Brain.

A Blueprint for Being a Lousy Investor is a fantastic write up by Greg Speicher using Charlie Munger’s principle of inversion to look at the problem of how to become a better investor.

I have finished reading the most recent annual and quarterly for one of the companies I found to research.  I just need to finish up reading this years proxy before I value the company but up to this point the company looks promising.  If I find the company to be undervalued I will continue to do research and will plan to write an entire article on the company.

I will continue to update you on my progress, and in the coming days I will continue to post links that I think hold some kind of value.

Vivendi News, Aswath Damodaran Valuing the Iphone Franchise, Warren Buffett, Great Investors, and Memory

Vivendi Studies Strategy After Two-Way Split Ruled Out is an article from Bloomberg Businessweek about what Vivendi might do now that it has allegedly ruled out breaking the company into two separate entities.  The interesting part of this article is that one of the scenarios states that Vivendi is looking at breaking up the entire company which would mean a sum of the parts valuation would be used.

My sum of the parts valuation done on 4-21-2012, written in my article here, came to a per share estimate of intrinsic value of $43.07 per share.  Looking back on the post now, I think that is a very conservative estimate.

Also on the Vivendi front, while I was reading Martin Whitman’s Third Avenue fund 3Q shareholder letter, I found that they have bought into Vivendi.  Here are their reasoning for buying into Vivendi at this time:

Also during the quarter, the Fund initiated a position in the shares of Vivendi S.A. (“Vivendi”), a company that has intrigued various members of our team for more than five years. The Fund had avoided investing in Vivendi’s shares for a variety of reasons, not the least of which were the company’s long-running addiction to debt-financed acquisitions and the absence of any discernible strategy for building shareholder value. In retrospect, the discipline paid off. The stock has performed very poorly over a long period of time. Vivendi spent much of its life as a French water utility, but in the mid-1990s was set on a path to become one of the world’s largest media and telecom empires. The improbable but very rapid transformation of Vivendi into a telecom and media giant was driven by a number of audacious debt fueled acquisitions. By the early 2000s, the tech, media and telecom bubble began to burst and the Vivendi empire famously came crashing down under a mountain of debt. The company spent much of the next decade languishing in the absence of strong management and a reasonable strategy. Most recently, though, considerable change is afoot at Vivendi. The company dismissed the CEO of its largest subsidiary, SFR, which is the second largest telecommunications company in France. SFR had been one of the epicenters of Vivendi mismanagement; the telecom company performed particularly poorly in the areas of cost management and in its failure to adequately address and confront the threat of new and increased competition. Shortly after the dismissal of SFR’s CEO, Vivendi’s board dismissed Vivendi’s own CEO, apparently as a result of irreconcilable strategic differences. Vivendi’s Chairman, who, during his own brief stint as CEO of Vivendi in the early 2000s, deleveraged the company considerably, has become the public face of the company and declared a strategic about-face. It appears that none of Vivendi’s underlying operating businesses are sacred any longer. As part of a broad restructuring effort, a number of its businesses have become subject to possible disposal in the effort to reduce Vivendi’s debt load and make headway in closing the gap between the share price and the underlying value of the company’s investee businesses, several of which are crown jewels within their respective industries. As it stands today, the company controls France’s second largest telecommunications company which, when combined with its control of the incumbent telecommunications company in Morocco and a highly successful Brazilian telecommunications company, would comprise a formidable global telecom business were they to be separated into an independent entity, as has been speculated. Vivendi also controls Canal +, France’s largest television business, as well as Universal Music and ActivisionBlizzard, the world’s largest music and video game businesses, respectively. There is considerable scope for dispositions as well as a sensible reconfiguration of the business into various components, all of which seem increasingly likely. Shares of Vivendi are trading at a considerable discount to our conservative estimate of its net asset value, essentially the current liquidation value of the company, and it appears that the mounting pressure on the company’s board has made value enhancing transactions and debt reduction increasingly probable.

 

Always nice to see a big time value fund buying into the companies you own.

Aswath Damodaran’s: Apple’s Crown Jewel: Valuing the Iphone Franchise is amazing valuation piece which could be used as a template to value other powerful franchises.

Warren Buffett Reflects on why he stayed in Omaha.

How to Gain an Investment Edge with Quotient’s Andre Bertolotti is a 4 minute video clip from The Manual of Ideas on how Bertolotti gains an edge in his investments.

How I got Religion and Dropped My Series 7 is a very interesting 6 minute video interview with the Reformed Broker about what he sees as the failings of holding the series 7 and the problems it can create in investment firms and Wall Street.

The Science and Psychology of Memory is a short write up from Farnam Street on things that you can do to improve your memory.

More links to come until I figure out if either of the two companies I have found to research deserve full article treatment.