Tag Archives: Brooklyn Investor

Good Analysis on Seaboard; Ten Other Blogs

SEB vs Brk

When everything is coming your way, you’re in the wrong lane. –S. Wright

Above you can see Seaboard’s stock price vs. Berkshire’s over the past decade.

Below is a good example of research on a cyclical company. Note that the analyst goes back far enough to see how the business performs over several cycles and economic booms and busts.  You may not agree with his conclusions (say that the company will continue to grow at 12%) but you can clearly see his assumptions.

If readers in the Deep-Value group (Google Groups) find interesting case studies don’t hesitate to share with the group. You will learn more from each other than from just reading this blog or the blogs listed below.


Ten Other Blogs of Interest

  1. Contrarian Edge: http://contrarianedge.com/
  1. ValueWalk: http://www.valuewalk.com/
  1. Brooklyn Investor: http://brooklyninvestor.blogspot.com/
  1. The Aleph Blog: http://alephblog.com/
  1. Wexboy: http://wexboy.wordpress.com/
  1. Greenbackd: http://greenbackd.com/
  1. Value Investing World: http://www.valueinvestingworld.com/
  1. The Graham Investor: http://www.grahaminvestor.com/
  1. Old School Value: http://www.oldschoolvalue.com/blog/articles
  1. Long Term Value Blog: http://longtermvalue.wordpress.com/

10 Value Investing Blogs You Should Follow (for detail on each blog)

Improving Your Skills as an Investor (Reading about Apple), Indian Investor

Service Call

Reading Skills: Apple Case Study

Besides reading about great investors or pouring over your finance text books, you should broaden your perspective and read about industries and business founders. This reading–if done critically–will develop a more nuanced analysis of investments. I don’t know if AAPL is a buy or sell, it is in my too hard pile, but I found the two posts below from The Brooklyn Investor very informative. Do not underestimate the power of a genius. This case offers you a way to see how one investor applied his reading for greater understanding. A broad perspective of the world will help your investing. Remember that if you read the same sources, think the same way, then your returns will be at best average.

Comparing Apple’s leadership to Polaroid’s Founder

Interview with an Indian Investor




PS: Money Supply Aggregates are humming along at about a 11% clip. Bernanke is on fast cruise control.

For the third week in a row, 13-week chained money supply (M2-nonseasonally adjusted)has come in at 11.4%. We, thus, may have hit a cruising altitude as far as annualized money printing.
Here’s the climb over recent weeks.
5.1%, 5.6%, 6.6%, 7.1%, 7.5%, 7.8%, 8.2%, 8.4%, 8.7%, 9.0%,
9.3%, 9.6%, 9.9%, 10.7% 11.4% 11.4% 11.4%

Pat Dorsey and Buffett on Moat Investing; Great Blogs


Moats: http://www.youtube.com/watch?v=ptIGzhgIE3o

  1. Customer switching costs: A customer would have to take a lot of time or money to switch like Microsoft’s Office Software.
  2. Network effect: credit cards which benefit by increasing units. Ebay.
  3. Cost advantages: A low cost producer. Process based cost advantages like Dell’s build to order are not as durable. Scale based cost advantage like UBS with a dense network of vans and shipping points.
  4. Intangible assets-brands, regulatory approvals, patents-that provide pricing power.

How management affects moats: http://www.youtube.com/watch?v=bQkcT0hSzY0&feature=relmfu

It is better to invest in a great business. Common attributes of management teams that have built or destroyed competitive advantages.  A view of businesses along the commoditization spectrum–Oil service businesses to Disney.  Management has more influence on a commoditized business. Ask whether management understands what drives the moat.

Wal-Mart’s laser-focus on low price.

Strayer Education—has a focus on educational quality. Focus on key metrics of the business.

Always widen the moat. Don’t deworsify. ADP’s bad acquisitions.

Value or Value Trap: http://www.youtube.com/watch?v=kTw7by4Z8As&feature=related

Annual report forensics: http://www.youtube.com/watch?v=_hg1MEltp58&feature=relmfu

Buffett’s Criteria for Investments

How Buffett identifies a good investment: http://www.youtube.com/watch?v=14SK4CX_KYY

Buffett says, “Throw at my head”: http://www.youtube.com/watch?v=2a9Lx9J8uSs&feature=related  What Buffett looks for in an investment–the chewing gum market. I want to know about what the economics of the business will look like in ten years.

Great Blogs

http://brooklyninvestor.blogspot.com/2011/09/directory-of-posts-on-ideas.html  A value investor who seeks the nooks and crannies of the market. Some excellent articles found here.