Value Investing News

In October at the CIMA conference Seth Klarman mentions an inflation hedge. This post is one investors opinion on what it might be based on his Baupost's 13F.

Bonus: Klarman Notes from CIMA

MG has kept some detailed Magic Formula records since January 2006 and in this post he demostrates the probabilites of returns broken down by portfolio size and market cap decile.

Perhaps this is why Bear Stearns isn't trading closer to $2.

The always sharp Jeff Matthews is worth a read:
"And while investors speculate there will be other, even bigger players disappearing shortly, we here at NotMakingThisUp suspect the worst of the liquidity crisis is past, or at least well-discounted by investors, here in the United States.

Excerpt: "The Fed is in a very tough position. This is a credit problem. It's serious. It's hard to say what the result will be - but it could potentially be very bad. You can have some pretty catastrophic things happen when people start to panic - as far as what happens with money and how all sorts of things can seize up at once.

How well defined is your circle of competence? How honest are you with yourself? Join Geoff as he discusses these topics and current market environment.

Wamu popped 18% today. Will Goldman or Buffett really bail them out?

After 13 years at number 1 Bill Gates falls to number three as Buffett moves to number 1.

Great post on the difficulties of projecting future growth rates. George, suggests that investors might be better served by using linear rather than compound growth rates.

Funny parody of Ackman. Mostly worthless, but I thought I'd share an investing related laugh with you.

Simply awesome. This article details the interesting story of Gillette (one of Buffett's more famous investments).

Excerpt: "We’ve designed what we believe to be the first index of companies trading below their net current asset value. The main purpose of this index will be to track a passive portfolio of net/nets. This index is chock full of small companies many of which have been beaten down, and some of which may not survive.

VIN favorite Vitaliy Katsenelson makes some 2008 predictions on the Value Investing Congress Blog

Excerpt: "Noven Pharmaceuticals (Nasdaq: NOVN) recently made significant changes to its board of directors and senior management. The company hired a new CFO, accepted the resignation of its long time Chairman and CEO Robert C. Strauss, and appointed Wayne P. Yetter as its new Chairman. We applaud these actions and believe a tremendous amount of value will come from the changes."

The hate e-mail can stop!! This blog has been investing real money in the magic formula for over 2 years. 2007's results and results since inception are now posted!