A Reader’s Question on Case Studies

On my good days, I think of Wall Street as one large promotion machine and on my bad days, I think of Wall Street as a den of thieves.–Jean-Marie Eveillard

Capitulation everywhere (risks rising): http://www.hussmanfunds.com/wmc/wmc130128.htm

A Reader’s Question on Cases

Hi John: Do you have a compilation of case studies that you’ve found extremely instrumental in learning from, that you’ve collected over time?

My reply:  Good question. Besides a relentless curiosity, learning how to learn is critical for your development. I believe subscribing to Grant’s Interest Rate Observer then downloading ALL 30 years of his letters while also downloading the SEC filings of any company he mentions over the past 30 years will repay you many times more than any MBA, CFA–if YOUR GOAL IS TO BECOME A BETTER INVESTOR.  You will learn financial history, valuation, about market psychology, business cycles. This is what I am currently doing. I have downloaded 1983 to 1993 newsletters. Now I just need the time to finish reading them!

OK, you don’t want to do that–shell out $990 or whatever–then go here:

•  http://www.offwallstreet.com/research.html
• http://www.bengrahaminvesting.ca/Teaching_Applications/cases.htm
• www.valueinvestorsclub.com
• http://brooklyninvestor.blogspot.com/
• http://wexboy.wordpress.com/
• www.gannononinvesting.com
• www.greenbackd.com

Take the first link. Download a research report, look at the name of the company and date, then download the financials for the company mentioned and try to analyze the company BEFORE reading the report.   What do you see? If you don’t understand something, look it up in your finance or accounting textbook that you keep by your side. Then read the report–what did you learn or miss?   Note what you need to learn, then learn it, then go on to the next report.

Yes, this takes hard work, doggedness, and discipline, but you can do it. Not many will, so there is your chance to become great.

Spend time doing this rather than listening to CNBC. Yes, we all laugh when we hear Icahn call Ackman a loser (I was appalled and saddened), but how will THAT help you become a better invesstor?

I will post a link to more case studies tomorrow.   Good luck.

PS: I haven’t forgotten my reply to an investor seeking an answer on what to do with his/her money.