New site to follow

I found this new site http://simple-value-investing.com/  that mainly concentrates on European and German companies. Since I do not research Euro companies that much, it looks like I will gain some knowledge about them, and maybe even some investment ideas. It also looks like it will be a learning resource as well.

I will definitely be adding the site to my daily reading.

Hope you enjoy

Deliberate Practice, Slackers, and The Real Crash dead ahead

Deliberate Practice

This article from http://www.farnamstreetblog.com/ talks about the importance and need for deliberate practice if you want to master something.  It also talks about the difference between playing around, which is what most of us do when we practice, and the work it takes to get incrementally better.  This is a very important subject for anyone who wants to improve any aspect of their lives.

Slackers

This is a part of an article written by Malcolm Gladwell talking about what holds us all back from becoming what we could become. If you are a subscriber to The New Yorker you can view the whole article.

The Real Crash Dead Ahead

This is an article from Marketwatch where the author gives his opinions on why he thinks another major economic crash is coming very soon.  The author says the coming recession is going to be worse than the recent recession.

Free Books, How to Absorb Knowledge, Future of Education, and a Microsoft Sony merger?

 

Free books

Here is a link for some more free books from Csinvesting.  Thanks again John and the anonymous contributor.

How to Absorb Knowledge

This article gives you a technique that a study shows, will help you remember what you have just learned.

Future of Education?

This is an amazing article that could help kids, especially from poor families, gain a proper education.  Rocketship Discovery Prep is a charter school who has been having some amazing results teaching kids so far how to become better in math and reading.

This is the kind of thing that we need more in this country.  We need school vouchers and school choice for families, especially if they live in terrible neighborhoods, and we need to worry less about the teachers unions and politicians that are controlling education now.

Microsoft Sony merger?

This article speculates that Sony and Microsoft could be working on some kind of collaboration for gaming in the future.  This is something I think could be beneficial for both of the companies in the upcoming console generation.  Too bad it is most likely not true.

Gist of this article:

I\’m very skeptical when it comes to rumors from unreputable sources and the whole \”I know somebody who knows somebody,\” kind of thing. And yet I recently heard tidings that were intriguing, if somewhat open-ended. I feel I should report it on the off chance that it leads to something. Then you could say you heard it here first. You can help me make heads or tails of it, but I think the bottom line was: Microsoft and Sony are in talks together. Where that will lead, we do not know.

First I will say that this source has been reputable for us in the past.  He let us know about the depth of the Nintendo Network and Nintendo\’s social/online plans months before E3. He told us about the Wii U\’s trademark issues for the letter U and we reported it one month before it became public knowledge. He told us about that he saw black casings for the Wii U back when everyone only had seen the white version. And he told at the same time about the Wii U\’s clickable analogue sticks. He also told us about a game that sounded close to the final reveal of NintendoLand.

Click on the article to see full article.

David Herro  International Stock Fund Manager of the Decade

Fortune Finance of David Herro
Fortune Finance of David Herro

This is a very good profile from Fortune Finance of David Herro who is “The man whom Morningstar crowned international stock fund manager of the decade in 2010.”

Herro is a “bottom up” value and contrarian investor who is currently betting big on European banks.  The profile talks about his life, his previous investing successes, his investment philosophy, and why he thinks European banks are selling at a huge discount.

Here’s the article and hope you enjoy:

Foreign Equity
David Herro
Oakmark International: 8.2%*; Category Average: 3.2%*
Oakmark International Small Cap: 10.1%*; Category Average: 6.1%*

Eclectic. Contrarian. Right. That pretty much sums up David Herro’s investment strategy and execution. Herro is a deep-value investor at heart, who focuses on 50 to 60 stocks and readily loads up on individual sectors and markets when he thinks they’re packed with compelling bargains. Both of his funds, therefore, are relatively compact and normally look quite unlike their relevant benchmarks and peers. In fact,  Oakmark International (OAKIX) currently has a huge media weight, a hefty business-services position, and a Switzerland stake that is nearly 4 times the foreign large-value average of 6%. Herro showed his contrarian stripes in late 2008 by scooping up luxury goods companies in both funds when investors were fleeing consumer discretionary stocks in droves, especially those focused on the high end. And though both funds have modest weightings in emerging markets right now, they have had substantial stakes in the developing world at various times in the past when Herro has spied opportunities.

Herro’s distinctive and rather bold value strategy comes with significant risks, and both of his funds have endured poor years only to bounce back smartly. The two funds finished in the cellars of their categories in 2007, for example, partly because his strict valuation discipline led him to almost completely ignore the red-hot energy and commodity-related industries. But those same standards helped both funds hold up reasonably well relative to peers in 2008’s terrible meltdown and helped them shine in 2009’s sharp rebound. Indeed, Oakmark International gained 56% and outpaced nearly all its foreign large-value peers last year, while  Oakmark International Small Cap (OAKEX) returned 68% and finished near the top of the foreign small/mid-value group in 2009.

 More importantly, Herro and his comanagers have delivered impressive results over time at both funds with this hard-core value style. The funds’ results over the past 10 years are anything but flukes. The two funds have posted superior results in all of the rolling 10-year periods since their inceptions in the mid-1990s.
 *10-Year Annualized Returns through 12/31/09

 

Your Investment Ideas and analysis, and a chance for a free book

Readers Investment Ideas and Analysis Page

I set up a new page just for you the reader to put your investment ideas, valuations, and analysis.  Here is the link for the page and the description is below.

This is going to be a place where you can put some of your ideas, valuations and analysis.  I do not care if you are a complete novice or run a hedge fund.  I want this to be a page for discussion on how we can improve all of our thinking and analysis.  If you are new to valuation and analysis of companies and do not feel confident in what you are writing yet, feel free to remain anonymous.

This page is going to be a page of improvement and learning so feel free to ask any questions you might have about any investing topic.  Also, you should feel free to give your feedback on others ideas.  Readers should also feel free to question, challenge, and critique other peoples ideas.  Critique needs to be constructive, and as positive as possible.

I will also post some of the best ideas and analysis on the main feed of the blog.  If I have your permission I will even post some of the best on my Twitter and Facebook feeds to get you some recognition.

If over the next week several people post their analysis, valuations, ideas, and/or critiques I will randomly select one and send you a free book from my collection.

Let the ideas start flowing.