If you want to contribute to a book on Moats: The Competitive Advantages of Buffett & Munger Businesses go here: http://www.frips.com/book.htm. You can read a few sample chapters of the book. I disagree with Buffett’s comment that Net-Jets has a competitive advantage—perhaps the company’s scale reduces its deadhead costs—but the company has yet to show consistently high profitability. I am not recommending this book/project, only making you aware. I hope when we complete our study of competitive advantages, you could surpass the analysis found there.
Ask Joel Greenblatt a question by Jan. 21, 2012 here: http://www.morningstar.com/Conference/speakers?referid=B4112
What are the best blogs for intelligent investors? See for yourself: http://www.fatpitchfinancials.com/2048/what-are-the-top-5-blogs-or-online-resources-you-particularly-enjoy-reading/#more-2048 or to vote and receive a recent listing: https://docs.google.com/spreadsheet/viewform?formkey=dEtsSEVOaFNpU3JQRW5CY1FsSUxkVEE6MQ
An extensive list of blogs found here: http://www.valuewalk.com/links/
Below is an assortment of blogs I have come across. The bolded links are ones I have found to be informative, but with little time to read all of these blogs, I leave the rest up to you. Your first priority in learning about investing should be to read original company filings with your accounting textbook alongside and/or the works of the masters like Buffett, Fisher, Graham, Klarman, Greenblatt, and Munger. However, any blog which informs and encourages you to think is worth a perusal. Learn from many sources, just don’t fritter away your time.
www.newyorker.com (good, in-depth business stories)
www.brontecapital.com Also, read his analysis of Fairholme (name not mentioned) here: http://www.brontecapital.com/peformance/2011/Client%20Letter%20201111.pdf. SHLD, one of Fairholme’s holdings, is mentioned in the last posting. This is a lesson in correlated bets of a NON-diversified portfolio. If wrong, you go down with the ship.
Eddie Lampert meets a bad business
Buffett does acknowledge that even the best managers (Eddie Lampert) will flounder if the business is not intrinsically sound. His most telling comment on management is:
‘When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact.’
Sears Holding Corp. announces its struggles. http://www.marketwatch.com/story/sears-holdings-provides-update-2011-12-27?siteid=bigcharts&dist=bigcharts
There are many lessons here: allocation of capital, operating a non-franchise business, a bad business, and hubris. We shall return again.
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