Article Update and Weekend Reading Links

I have finished up all three articles in my now shortened series and will proofread and do some light editing over the weekend and post them as soon as possible after I am able to acquire the shares I want.

Psy Blog-How Long To Form A Habit.

Hardcore value-Amazon, Apple, and The Beauty Of Low Margins.

Distressed Debt Investing-One Of Warren Buffett’s Greatest Trades.

CSInvesting-Video Lecture Course On Security Analysis and The Intelligent Investor.

Share Sleuth-Finding Hidden Debt.

Can’t Eat Value’s Blog-What’s Your Investing Edge.

Oddball Stocks-Value Momentum, Speculating On Recovering Net Nets.

The Equity Desk-Benjamin Graham: An Investing Legend.

Ragnar Is A Pirate-Fraud, Bankruptcy, and Ethanex.

25iq.com-Charlie Munger On The Psychology of Human Misjudgement.

Basehitinvesting.com

Wexboy-Why I Write…

The Globe and Mail-Article By GreensKeeper Asset Management Principle Michael McCloskey.

Distressed Debt Investing-My Three Favorite Quotes From Baupost’s 2012 Year End Letter.

Graham And Doddsville-Legacy Of Benjamin Graham.

Wexboy-The Great Irish Share Valuation Project Part IV.

GuruFocus-Answers From Tom Gayner’s Interview With Guru Focus.  Thanks for the link Obtuse Investor.

Sahara Investing-Triyards Holdings.

World Financial Review-Repeatability: How Companies Create Enduring Businesses In A World Of Change.

CSInvesting-More Valuation Case Studies.

Another GuruFocus Editor’s Pick

Unico American Corporation: A Company I Would Love To Own Outright.

I was expecting to just use this as a learning experience since this is the first insurance company that I have truly evaluated. I was planning on learning the important insurance industry terms, what they meant, how they affected the company in question, what the float was and how that affected the company’s operations, etc., and analyzing the company using all the knowledge I have gained lately from my recent foray into studying float and put those findings into an article.

I was not expecting to find what I did: a company that is undervalued by every one of my estimates of value, a company that has been for a number of years very disciplined and conservative in its estimates, which I found are of utmost importance in the property and casualty insurance business, and a company that has had underwriting profits every year since 2004, which I found out is really hard to do. If I had the capital available I would love to own this entire company and to build my investment firm with it at the core, a la Warren Buffett with Berkshire Hathaway (BRK.A)(BRK.B) and its insurance companies. However, unless someone out there would like to endow me with nearly $100 million I will just have to be happy buying shares in UNAM and watching my money compound into the future.

To check out full article click the link below

Gurufocus Editor’s Pick

Good Read About Valuations For The Week

Motley Fool-Monish Pabrai’s Lunch With Buffett and Munger.

Value Investing Blog-Alpha Pro Tech And The Value Of Optionality.

Cant Eat Value-Why You’re Undervaluing Good Capital Allocation.

Student Of Value-Investment Analysis Of Quality Products $QPDC The Mysterious.

Zero Hedge-Guest Post: A Short Lesson In Bad Decision Making.

The Daily Beast-Don’t Go To Business School!

Wexboy-The Great Irish Share Valuation Project (Part 1).

Oddball Stocks-CIBL is Undervalued Again, Is The Valuation Gap Enough?

Business Insider-Vitaliy Katsenelson Presentation On Why The Market Will Move Sideways For Another Decade.

Distressed Debt Investing-The High Yield Market “Is Completely Out Of Control”.

Philip Beeching-Why Companies Fail–The Rise And Fall of HMV.

Value Walk-Charlie Munger And The Art Of Stock Picking.

Sahara Investing-The Hour Glass.

OTC Adventures-Great Lakes Aviation Is Not Your Typical Airline $GLUX.

Grizzly Rock Capital-Why Selling Methodology Differs For Average Versus Great Companies.

Seraphin Group-When Do I Sell Stocks? Drawing Wisdom From Buffett To Zuckerberg.

CS Investing-Reading On Moats And Competitive Advantages.

Whopper Investments-Why Is Buying A Rising Stock So Hard?

Guru Focus-Geoff Gannon On How To Learn Everything You Need To Know About A Stock.

25iq.com-Charlie Munger On Investment Concentration Versus Diversification.

How To Value Float, A Book Recommendation, And Other Thoughts

How To Value Float A Book Recommendation And Other Thoughts

More Float Info

While I was beginning to write my UNAM article I realized that of all the learning I had done about float, I had not learned how to value it.  Below are some more sites that I learned from while I was putting my article together on how to evaluate and value a company’s float.  Some of the information and valuations made it into my UNAM article and a lot of the other stuff made it into my written notes.

Personally I would put these links on about on par with some of the other information on float I have learned about and posted on the blog from the Fundoo Professor and others, and I hope you learn something from them as well.

Book Recommendation

I cannot recommend The Davis Dynasty highly enough.  I wish I would have known about this book.  And read it when I had first started learning about investing and would put in on the same level as The Intelligent Investor, Security Analysis, Margin of Safety, and You Can Be a Stock Market Genius as some of my favorite investment books.

The Davis Dynasty is a book about the Davis family starting with the older Shelby Davis who started with $50,000 in investment funds almost at the age of 40 and turned it into approximately $900 million by the time he died.

His son and grandsons are now continuing his investment legacy and have continued to compound portions of that money still to this day, or at least when the book was published.

The book goes over the general family and investment philosophies and how they made so much money.

The older Shelby Davis made his money mostly with insurance stocks.  The younger Shelby Davis made most of his money with a mixture of financial, insurance, and other stocks.

The grandsons have continued the overall philosophy but have expanded out from the so called boring insurance stocks.

Again, I cannot recommend this book highly enough.

I have started to read The Farmer From Merna about how State Farm Insurance was started to continue gaining knowledge about the insurance industry.  After I finish this up I plan to look for another company to research.

Some Other Things I Have Been Up To

  • I am still learning Mandarin and at this point I have learned probably somewhere north of 2000 words or close to that.  Still amazing and I think this will definitely help me at some point down the road.
  • Nate (Oddball Stocks) and I were having a conversation a while back about how he read French value investing blogs to help him learn French faster so I decided to try to find some investing blogs that are in Mandarin to help me learn faster.  However, up to this point I have had only minimal luck so I have instead turned my latest article on UNAM into completely Mandarin text and thought I would try this out to see how this works.
  • I got some pretty good news from my lawyer friend about opening up the potential investment firm that I mentioned almost a month ago.  So far no concrete updates and I still have some more calls to make and digging to do, but at this point it looks like nothing should prohibit me from opening up a small investment firm.
  • I have started some work on an investor’s presentation so that when I do figure out things for sure I am ready to start contacting friends, family, and local wealthy people to see if they would like to invest.
  • I have been trying to get myself out there more still in the hopes of getting some kind of job offer, even if it is just someone who wants to pay me for my investment ideas until I open up the investment firm, so I have reapplied to the Value Investors Club.  Last time I applied I had to wait a few weeks to see my rejection letter.  Applied to SumZero and have already gotten an email back from them saying that because I do not have hedge fund/investment firm experience that I cannot join their site.  Started putting my articles on Guru Focus and my Brazil Fast Food article, the first article I have posted to GF, was named an Editor’s Pick.  So far nothing in the way of job offers but people generally say that they like my work a lot and that I do a really good job of laying out my analysis. I have a couple ideas that I may share in the coming weeks about some other ideas I have in this area as well.

Right now I am going to be finishing up The Farmer From Merna, then find another company to research, and keep doing the stuff above.  I will also probably post some more links here shortly.

More interesting links about valuations

Here are more interesting links about valuations:

Oddball Stocks-What’s Your Real Business? The National Stockyard Story.

Geoff Gannon Guru Focus-Always Use Normal Numbers.

Shares and Stock Markets-How To Value A Business Like A Professional Money Manager.

The Aleph Blog-If You Want To Be Well Off In Life.

The Meta Picture-Learn To Read Korean In 15 Minutes.

Geoff Gannon Guru Focus-What Is The Best Way To Learn Accounting?

Oddball Stocks-Investing Like A Lender.

Graham And Doddsville-The Value Investing Gene-Buffett, Klarman, and Evolution.

The Guru Investing-Small, Illiquid, and Cheap: A Winning Combo.

Greenbackd-Quantative Value: A Practitioner’s Guide To Automating Intelligent Investment and Eliminating Behavioral Errors.  Have not read the book yet but plan to.

Micro Cap Club-Alter NRG Corp: Disposition Case Study With Ending Unknown.

Businessweek-Ryan Morris, 28-year-old Activist Investor.

Gannon And Hoang On Investing-My Investment Process.

OTC Adventures-Calloway’s Nursery $CLWY.

Aswath Damodaran Musings On Markets-Acquisition Accounting II: Goodwill, More Plug Than Asset.