On a forum I visit regularly there was a post when a novice investor asked if there was a good beginner stock that he could learn the ropes with. The general consensus was that there is no such thing as a beginner stock; all stocks were viewed as extremely complex generators of investment returns, full […]
A great deal of analysis is devoted to ferreting out a company’s true earnings. It may be necessary, for example, to adjust asset impairment costs if the reality is not that the assets suddenly became impaired but that the company overpaid for them to begin with. Benjamin Graham’s Security Analysis devoted a significant number of […]
Of course, the previous post is common knowledge. By way of example, and to illustrate a strategy that commonly arises from market misconception (I’m glad to say I thought of before I read an excellent out-of-print book, Margin of Safety by value investor Seth Klarman) is to buy the junk bonds of a company and […]