Tag Archives: warren buffett

Snowball Author Discusses Buffett; Pierre Lassonde on Royalty Companies

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Tim Du ToitFounder & CEO of Eurosharelab.com

Alice Schroeder, author of The Snowball: Warren Buffett and the Business of Life. Looking forward to your questions. (self.investing)

http://www.reddit.com/r/investing/comments/2550vq/hi_im_alice_schroeder_author_of_the_snowball

Royalty Companies: Pierre Lassonde, Chairman of Franco-Nevada. Not cheap but you pay a fair price now for quality.

If you ever wanted the cheapest way to own precious metals and/or copper, then focus on micro-cap companies with good assets and that are NOT producing–got that?

Now if you don’t want to wade through tmx.com then I suggest GLDX.

GLDX May 22

Counter intuitively, this may be a safer investment than GDX or GDXJ.  WHY? Aren’t explorers and pre-production companies risky? Yes, of course, you must diversify, but if gold declines these companies can hibernate by cutting costs sharply–faster than Newmont. And if gold turns, this can double or triple. A 50% loss for a double or triple is what I am assuming.  I could be wrong. Remember you are not buying quality but cheap, cheap assets.   This is NOT a recommendation but an idea for YOU to investigate or forget about.  This is about cheap OPTION value.  Do not do anything before going to school. 

Go to the mining investment university:

http://www.sprottglobal.com/natural-resource-investing/investment-university/mining-investment-college-video-1/

www.goldsilverdata.com then click on mining 101

www.oreninc.com

HAVE A GREAT WEEKEND and MEMORIAL DAY in the U.S.A.

The Temptations of Saint Warren

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LewisBuffett

Michael Steinhardt sounds off on Warren Buffett

Buffett Tutorial on Accounting and Valuation: See’s Candies Case Study

I have always maintained that excepting fools, men did not differ much in intellect, only in zeal and hard work.  –Charles Darwin

Value investing works, because it does NOT work ALL the time. –Joel Greenblatt

Today’s post focuses on accounting (GAAP) and valuation through the words of Warren Buffett. The case study on See’s Candies and the other readings will help improve your skills. The burden is on you to understand and apply the lessons. If you do not understand FIFO or deferred taxes, then look up those terms in a basic accounting book, then do problem sets to grasp the concepts. Don’t take Buffett’s words on faith; try to apply the concepts of economic Goodwill to a commodity based company like, for example, US Steel (X) versus a franchise company like Coca-Cola (KO). Do you agree with Buffett’s analysis?

Prof. Joel Greenblatt’s book, The Little Book that Beats the Market, is (simply) an application of Buffett’s thoughts on economic Goodwill.

Helpful hint: Take a subject like share repurchases or divdend policy and try to find many different sources on the subject. Learn the subject to death. Master how, when or if a company should act in returning capital to shareholders.

See’s Candies Case Study:Sees Candies 2012

SUPPLEMENTARY READINGS

A Parable on Valuation: The Old Man and the Tree or a Parable of Valuation

Inflation:Inflation Swindles the Equity Investor and Buffett inflation file

EBITDA: Placing EBITDA into Perspective and TEV to EBITDA Research

Joel Greenblatt: Little Book That Still Beats the Market, The – Joel Greenblatt

Secrets of (view): http://youtu.be/3PShSES5nBc   25 minutes

Corporate Finance

Share Repurchases: Corporate Structure and Stock Repurchases and Assessing Buybacks from all Angles_Mauboussin

Dividends: Dividend Policy, Strategy and Analysis

You will beat Wall Street easily if you apply the above lessons. The hard work is in mastering the material.   Stay the course.