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My investment book reading suggestions

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  • To tackle this question once and for all I thought the best idea was to write one or more blog posts about it, starting with books that I would recommend reading.
  • Understanding psychology is extremely important if you want to make good decisions, yet at the same time it’s very hard to apply.
  • The border between books in this category and the investment basics category is arguably a bit vague, but these books are on average a bit more practical, maybe aiming at more specific subjects and heavy on examples and case studies.

5 Stocks Pumping Up Their Dividend

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Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough - the dividend growth investor also expects substantial and consistent growth.

Below are several companies not only sustaining their dividends, but growing them...

Michael Burry: How Can Investors Get Even After Suffering A Loss

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  • However, once having lost money, investors tend to set a seemingly conservative new goal: breakeven.
  • In an attempt to get back to breakeven, most investors simply ratchet up the risks they take.
  • All investors stumble.

Paul Lountzis on Qualitative Investing and Lessons Learned

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  • Paul Lountzis spoke on the topic of qualitative investing and lessons learned at our MicroCap Leadership Summit 2018.
  • In the presentation below, he provides some incredible insights into his qualitative framework ...

Margin of Safety Saves the Day in a DCF Valuation of Harley-Davidson

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  • It had steadily grown its dividend to the point where its dividend yield (as of mid-June 2006) was about 1.28%.
  • A quick, back-of-the-envelop calculation puts its UFCF at a similar level as 2005, around $673M.
  • Even though the risk-free rate and the equity risk premium are lower than in 2006, HOG’s solvency issues seem like a fairly decent risk for me to take on as an investor, and there a good alternatives for my cash at that level and above.

The Myth of Capitalism: Monopolies and the Death of Capitalism. Jonathan Tepper and Denise Hearn. A review...

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  • Oligopoly - extreme market power - not only makes airlines super-profitable.
  • Amazon, Costco and above all WalMart are the key example.Walmart for years used to talk in their conference calls about all the cost savings they were implementing.
  • Costco is almost the only company in this book that comes off well.

The Tooth Fairy Set To Visit Danaher In Second Half Of 2019

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  • As we mentioned when Danaher(DHR) completed its spinoff of Fortive(FTV) in 2016, it has been one of the best performing stocks in history.
  • Founded by Steven and Mitchell Rales, Danaher Corporation(DHR) is one of the most successful business stories of the last three decades.
  • One of just 44 companies with a cumulative total return of greater than 10,000% over… Read More »

Charles Munger: Civilized People Don’t Buy Gold

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  • Here’s some classic Munger wisdom on ‘gold’ as an investment:
  • “I think gold is a great thing to sow into your garments if you’re a Jewish family in Vienna in 1939 but, I think civilized people don’t buy gold, they invest in productive businesses.”

Some links

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  • Rob Vinall (RV Capital) has released his 2018 letter with deep thoughts on subscription models.
  • There will also be a Live Stream of his upcoming investor meeting Marketfolly has good write ups on the London Sohn Conference Interesting thoughts on the strength of different platform business models GreenWood Investors explains its “12 month re-underwriting” process Fellow blogger Wexboy with his 2018 review as does JohnKingham (UK Value Investor) Strong versus weak technologies Yet another value blog with write up on Radisson Hospitality and Telecom Italia

Searching for Value in Front of a Recession (or not) & Trying to not get Buried in the Miners

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  • Searching for Value in Front of a Recession (or not)
  • Those looking for signals of the next recession might just want to look at the stock market instead.
  • Among the 10 major asset classes comprising the securitized universe of equities, bonds, real estate, and commodities, this group has never escaped a bottom 3 performance in over 10 years.

Back to Class: A Teaching Manifesto!

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  • Other Options I am under no illusions that you are sitting around, wherever you are in the world, with nothing better to do than watching two long sessions each week from February through May.
  • As with the regular classes, these are still free, still come with slides and post class quizzes but offer no official certification.
  • NYU Online Corporate Finance Certificate Class NYU Online Valuation Certificate Class

Hedge Fund Links ~ 1/11/19

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  • The 20% a year stock picker who wishes his edge would disappear [Bloomberg]

Hold The MSG? MSG To Separate Billy Joel From The Knicks In Planned Spinoff

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  • Another serial spinner is at it again.
  • In 2010, James Dolan spun off Madison Square Garden from its Cablevision empire in order to better value its sports and entertainment related businesses.
  • Five years later the regional sports businesses got their own turn to shine via the spin off of MSG Networks (MSGN).

FY-2018: What The Market Gods Giveth, They Also Taketh Away…

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  • Instead, this performance – as alarming as it may seem – reflects the overall European market, European banks, disappointment with Irish property REITs’ performance, and other lingering (large) company-specific issues.
  • Nearly five years later, I’ve suffered a 46% loss on my original Zamano investment .
  • In 2017, I enjoyed a real barnstormer , in terms of both my relative & absolute return – i.e. my +26.3% portfolio gain was two & half times my +10.7% benchmark return.

This Week’s Best Investing Reads 1/11/2019

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  • Here’s a list of this week’s best investing reads:
  • This week’s best investing research:
  • This week’s best investing podcasts:

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