Value Investing News

In order for investors to become better at allocating capital, it is important to learn from ones mistakes. I have identified several mistakes, which could have saved investors billions had they known about them in the first place:

Fannie Mae has taken a beating over the last 8 months. Is there some value left in the business for investors?

Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how buy-and-hold works? The confuse a buy-and-hold strategy with day-trading with a longer duration.

Value investors today get the WSJ's version of what hurt the legendary Bill Miller, whose Legg Mason Value Trust outperformed markets every year from 1991 to 2005 before falling almost 60 percent year to date:

Audio of Ackman's press conference

William Patalon III has a four-point plan to beat the bear this time round: 1) Load up on high dividend stocks; 2) Buy gold; 3) Stick to ‘global titan’ companies; and 4) Stay relaxed…

I received a lot of e-mails from subscribers on Monday after the collapse of Wachovia, asking me which bank I believe will be the next to fail. Most investors are afraid they will wake up next Monday morning with a worthless financial stock, whose deposits have been sold to another institution.

Eric Fry says his investment strategy is based on a simple formula: “Sell the dollar, sell the dollar and sell the dollar.” And as the buck gets whacked, so will American stocks and bonds. On the other hand, foreign assets and commodities should soar…

It’s inflate or die for Western capitalism,” says The Sovereign Society investment director, Eric Roseman. It may take a while but, according to Eric, Hank Paulson’s attempt to rescue the financial system will send inflation soaring and the US dollar tumbling.

William Patalon III says there are four solid ways to protect your portfolio from these forces: 1) Buy dividend-paying stocks; 2) Buy gold; 3) Buy companies focused on overseas market; and 4) Don’t panic…

The following extract is taken from a research report published over the weekend by Money Morning…

Now that's a major market headline. Fear strikes Wall Street as several significant events hit the financial sector.

If you’ve visited Contrarian Profits this week, you’ll know we don’t think highly of the Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) bailout. That doesn’t mean we can’t find a way to profit from the mess.

Warren Buffett made an appearance on CNBC this morning and discussed Fannie Mae and Freddie Mac.

A look at the Treasury's plan for Fannie Mae and Freddie Mac, plus Guy Spier of Aquamarine Capital Management's guidelines for protecting your portfolio from Black Swans

The government has formulated a plan to put troubled mortgage giants Fannie Mae and Freddie Mac under federal control, dismiss their top executives and prop them up financially, federal officials told the two companies yesterday, according to three sources familiar with the conversations.