Value Investing News

Awesome video detailing the story of Chuck Feeney — the billionaire you've never heard of.

A memo from Warren Buffett to Berkshire Employees, sent last May and in place for over 10 years...

An investment manager writes about the one question the Federal Reserve can't answer: "and then what?"

It seem to me that monetary policy should be informed by the effect it has on incentives and the potential for greater procyclicality of the system. In this paper...

The best list of behavioral economics books on the web. Some of these are must reads for investors wanting to learn more about behavioral economics.

@FarnamStreet

The whole premise of razors-and-blades is that you get them to buy more blades after they have disposed of the original blades. Razor blades aren’t, to jump ahead in the story, say ebooks or computer macros, where use of the product generates a library that has a going forward value and one that might be forfeited if you switched platforms

In one stroke of the pen Sardar Biglari has simultaneously made Richard Dunning, the inept CEO of Fremont Michigan Insuracorp, appear underpaid and distanced himself from his most loyal followers. Regardless of his capital allocation skills, gone are the days when he's compared to the man he's clearly trying to emulate.

Now this is interesting. (Especially when you consider the long-term average return on equity is 10%.)

The first letter written by Charlie Munger at Wesco

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The 1984 Letter to Wesco Shareholders @mungerisms

1895 Letter to shareholders

Great presentation by Sanjay Bakshi

This is a great paper. It presents one of the best comprehensive narratives about what went wrong over the past several years that I have read. If you want to read only one paper about the recent financial crisis, this would be a good choice.

A walk through of how Lehman used repo accounting to. This post including sample balance sheets and clear explains the difference between financing and sale accounting with and without debt repurchases. A must read for anyone wanting to understand what happened and how easily leverage can (and is) hidden.

Great article by Benjamin Graham from the early 20's on capital allocation and returns.