Bill Ruane Value Investing Sequoia

Bill Ruane Value Investing Strategy

Legendary Investors, Value InvestingLeave a comment

In 1950, William Ruane, or Bill Ruane as he was known, took a course on value investing taught by Benjamin Graham and David Dodd at Columbia University despite having graduated from Harvard Business School. One of his classmates was Warren Buffett, with whom he formed a friendship. Years later, when Buffett dissolved his investment partnership, he recommended that any partners still interested in value investing put their money with Ruane, who had launched his own firm, Ruane, Cunniff. The flagship value investing vehicle of the new firm was the Sequoia Fund, an open-ended mutual fund. Over the next 38 years, the Sequoia fund outperformed the S&P 500 by compounding at 15% per annum versus 13% for the broader index.

Benjamin Graham Value Investing Strategy

Benjamin Graham Value Investing Strategy

Legendary Investors, Value Investing1 Comment

In addition to penning several of the most important value investing books in history, Benjamin Graham, the father of value investing, was one of the two partners in the Graham Newman Corporation, the investment fund through which he put money to work. It was at this firm that Warren Buffett worked early in his career, learning from the master. As he amassed an astounding investing record, Graham divided his portfolio into several categories, or “operations”. These served value investing students well for more than seventy years and some still have value today.

Paying for Your House with Dollar Cost Averaging

Paying for Your House with Dollar Cost Averaging

Dollar Cost Averaging1 Comment

A family member recently used dollar cost averaging and the power of compounding in such a creative way, that I thought it would be useful to share it.  This technique, which he developed after studying the various returns available on different asset classes, was designed to show that two factory workers, both earning the same salary, paying the same taxes, and having the same expenses, could end up with vastly different levels of wealth based on what they did with their surplus cash each month.  Let’s take a look at this dollar cost averaging technique and how he hopes it will help him earn several extra hundred thousand dollars in profit over the coming decades.