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The Sugar Refiner Shares We Own Are Surprising Me (and More Portfolio Updates)

August 19, 2010 By Leave a Comment
Sugar Company Stock Certificate

I hardly ever talk about the portfolios I manage (the last time was when I added Campbell Soup to the blue chip reserve portfolio in Some Changes In the Portfolio), mostly because investment ideas are rare.  Still, I write about it to the same extent I would be willing to discuss something over coffee with fellow investors so here are some thoughts about what has been going on at Kennon Green Enterprises lately. The shares of the sugar refiner I had one of my businesses buy only 3 months ago … [Read more...]

Filed Under: My Businesses Tagged With: , , , , , , , , , , , , , , ,

Here Is One of My Secrets to Making Money (Or, How I Once Bribed Women to Code for Me with Diamonds, Rubies, and Chanel)

July 30, 2010 By Leave a Comment
Diamond and Ruby Bracelet with Bottle of Coco Chanel Mademoiselle Perfume

The Secret: Strike Deals Where Everyone Has Limited Downside and Harness the Super Power of Incentive Some of you have been writing to me privately and asking about the early days when we started out and were trying to build our companies.  I thought it would be useful to share some of the things we did during that time that worked out well ... and maybe I'll even talk about those things that didn't work out so favorably.  I hope you find it useful in your own endeavors. When Aaron and I … [Read more...]

Filed Under: Making Money, Psychology Tagged With: , , , , , , , , , , ,

Not Every Value Investing Position Is “Buy and Hold”

May 14, 2010 By Leave a Comment
Saks 10 Year Stock Chart

I'm a value investor.  My favorite type of holding is a company that generates high returns on non-leveraged equity, has a strong competitive position that is virtually unassailable, and is trading at a stupidly low price-to-earnings ratio.  These are rare and when they come along, you have to be willing to make a substantial commitment (as Buffett said, when it is raining gold, reach for a bucket not a thimble).  Since I don't like selling stuff, I love the fact they can sit in my accounts, … [Read more...]

Filed Under: Value Investing Tagged With: , , , , ,

The Problem with Tootsie Roll Industries for the Value Investing Crowd

May 12, 2010 By Leave a Comment
Tootsie Roll Stock Products

For more than 15 years, I have watched the Tootsie Roll company and waited for it to be "fairly" valued or undervalued relative to the stable profits that churn out year after year like the chewy candies for which the business is known.  It's the type of company that I would love to have a long-term investment in that sits on the balance sheet of my operating businesses and compounds over the decades.  In fact, I love the idea of being able to pass on to my grandchildren shares of the company … [Read more...]

Filed Under: Case Studies & Profiles, Value Investing Tagged With: , , , , , , , , ,

The Postman Just Brought Gifts

April 27, 2010 By Leave a Comment
Benjamin Graham on Value Investing Book with a Giorgio Armani Fountain Pen in Gold

The mail just arrived. I have the new Sears Holdings 10K, the Union Pacific 10K, the Panera Bread 10K, the Charles Schwab annual report, and a host of others. How on earth am I supposed to write now? I want to read! … [Read more...]

Filed Under: Investing Articles Tagged With: , , ,

The Success of the iPad Will Come Down to App Development

April 7, 2010 By 1 Comment
The iBook Store in iPad

Five days or so into my experience with the iPad and it continues to exceed expectations (by far). I've spent somewhere between $120 and $150 in the Apple iTunes App store, which compared to my previous purchases of apps (read: $0), means there is more cash flowing into Steve Jobs' coffers. The overwhelming indication continues to be that the success of the iPad will come down to the applications that software companies develop for it. We bought our iPads for business purposes. As an … [Read more...]

Filed Under: Computers & Technology, My Businesses Tagged With: , , , , , , , , , , , , , ,

An Interesting Bit of Nostalgia from My Childhood …

March 13, 2010 By Leave a Comment
Papa John's Stock Certificate

A pleasant bit of nostalgia today.  I was researching Papa John's and it reminded me of the last time I read the report.  I was in 7th grade in a small town called Savannah (again, most of you know I lived in seven or eight different places  before I finished middle school so it's sometimes necessary to clarify).  I was doing something for the student government association and was in the journalism room on the third floor.  We were there after school, the sun was starting to set, and the … [Read more...]

Filed Under: My Life, Stocks Tagged With: , , , ,

Using Cash to Increase Your Value Investing Returns

January 10, 2010 By Leave a Comment
Cash In Your Value Investing Portfolio

One of the least discussed secrets of great practitioners of the value investing strategy is the use of cash, cash equivalents, and bonds to augment returns.  From Benjamin Graham and Warren Buffett to Wallace Weitz and Marty Whitman, intelligent use of excess funds has as much to do with growing your capital over the long run as does selecting individual common stocks.  We're going to look at some of the techniques that have been used by value investors to manage their reserves, and the role … [Read more...]

Filed Under: Value Investing Tagged With: , , , , , , , , , , ,

Focused Value Investing Strategy

January 9, 2010 By Leave a Comment
Focused Value Investing

The focus value investing strategy is different from traditional, Benjamin Graham value investing strategy because it is based upon the idea of putting money into more of an investor's "best ideas", as Warren Buffett put it.  Some value investors despise focused investing, while others swear by it.  I'm always very hesitant to talk about this particular strategy on Investing for Beginners where I publish my investing articles for total newbies, mostly because some lazy person may not study … [Read more...]

Filed Under: Value Investing Tagged With: , , , , , , ,

Mr. Market – The Famous Value Investing Allegory

December 30, 2009 By Leave a Comment
Benjamin Graham Value Investing Allegory

In his classic treatise, The Intelligent Investor, Benjamin Graham, the father of value investing, created an allegory to help new investors understand how to think about stock prices and value investing in general. By using it, you can help protect yourself from overpaying for a stock, panicking when the market crashes, or doing foolish things resulting from emotional reactions to the nightly news.  Along with the margin of safety concept, Mr. Market is a cornerstone of the value investing … [Read more...]

Filed Under: Value Investing Tagged With: , , ,
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