Value Investing News

This is somewhat of a tricky subject for Value investors. Warren Buffett (WB) doesn't short - for very good reasons. Most of the seasoned value investors that we emulate are long only portfolio managers. Berkshire Hathaway shareholder letters are said to be everything one needs to know in order to make money in the markets but WB lists no rules for shorting.

The fundamentals of economic strife based on the disastrous collapse of the U.S. housing market will not get better any time soon. In fact, what’s being pushed through both houses of Congress, even as you read this, is so dangerous that it should be immediately abandoned and revealed for what it is - a ticking time bomb labeled with the initials FHA.

Barron's examines Wells Fargo and finds them in better shape than most other banks and likely to come out of this credit crisis unscathed.

Countrywide sale to BAC may yet be derailed given that the opposition to this transaction is now gathering steam

Bank of America is attractive based on valuation today. It becomes even more interesting when you consider that there may be a way of buying Bank of America at a discount to today's prices

After BOA's warrants to buy CFC at $18, today comes the news of other investors buying into CFC in late teens/early twenties.The price today is $13 and change. Is there a sufficient discount in the name to compensate for the future risk??

Excerpt: "So it wasn’t just Countrywide’s mortgage brokers who went wild — valuing a house for about 50% more than it is now worth. It was the people inside the house, too. Maybe they should have charged more for the parties!"

In his classic book Margin of Safety, author Seth Klarman defines value investing as "the discipline of buying securities at a significant discount to their underlying value and holding them until more of their value is realized."

Veteran stock picker Ron Muhlenkamp first bought Countrywide shares in 2002 when they were getting crushed - and he's not ready to sell now.

How to determine if risk is real or imagined?

This post has all the video links available to the Fox Business Interview with Buffett, together with an analysis by Avi Ifergan. There is also a link to a very special 1951 article (pdf) written by Buffett titled "My Favorite Security".

Why more companies could go belly up.

Reflecting upon two years of learning, wins and losses, blogging and operating an investment website.

two stocks down

Morningstar review first-quarter fund letters including Legg Mason Value Fund, Longleaf, Oak Value, Oakmark Select, Third Avenue Value, Tweedy, Browne Value, Weitz Partners Value etc. They see two key themes and several top stocks.