This is an oldie, but a goodie (via CNN). The travails of buying net nets, as told by the master’s apprentice: Warren Buffett says Berkshire Hathaway is the “dumbest” stock he ever bought. He calls his 1964 decision to buy the textile company a $200 billion dollar blunder, sparked by a spiteful urge to retaliate [...]
Archive for the ‘Net Quick Stocks’ Category
The dumbest net net stock Warren Buffett ever bought
Posted in About, Greenbackd, Net Current Asset Value, Net Net Stocks, Net Quick Stocks, Net Quick Value, Warren Buffett, tagged Berkshire Hathaway Inc. (NYSE:BRK.A), Warren Buffett on October 19, 2010 | 1 Comment »
Fear and loathing in Lazare Kaplan International (AMEX:LKI)
Posted in About, Net Quick Stocks, Stocks, tagged Lazare Kaplan International (AMEX:LKI), Net nets on June 11, 2010 | 2 Comments »
Jon Heller at Cheap Stocks has a great post on The Downside of Net/Net Investing- Lazare Kaplan (LKI). Says Jon: In July of 2009,we initiated a new position in the $1.15 range. The shares subsequently ran up to $2.50, but in September, trading was halted,and not a share has traded since. The company has repeatedly delayed filing [...]
ROIC and reversion to the mean: Part 3
Posted in About, Behavioral economics, Contrarian investment, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, Value Investment, tagged Mean reversion, Value Investment on April 27, 2010 | Leave a Comment »
Recently I’ve been discussing Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf) about Mauboussin’s research on the tendency of return on invested capital (ROIC) to revert to the mean (See Part 1 and Part 2). Mauboussin’s report has significant [...]
Mike Burry’s Silicon Investor “Value Investing” thread
Posted in About, Net Current Asset Value, Net Quick Stocks, Net Quick Value, tagged Dr. Michael (Mike) Burry, Liquidating Value, Liquidation Value, Net Cash Stock, Net Current Asset Value on March 3, 2010 | 5 Comments »
Yesterday I ran a post on Dr. Michael Burry, the value investor who was one of the first, if not the first, to figure out how to short sub-prime mortgage bonds in his fund, Scion Capital. In The Big Short, Michael Lewis discusses Burry’s entry into value investing: Late one night in November 1996, while on a cardiology [...]
Cheap Stocks 21 Net Net Index results
Posted in About, Liquidation, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Liquidating Value, Liquidation Value, Net Current Asset Value, Net Net, Net Net Stock on February 26, 2010 | 3 Comments »
Jon Heller of the superb Cheap Stocks, one of the inspirations for this site, has published the results of his two year net net index experiment in Winding Down The Cheap Stocks 21 Net Net Index; Outperforms Russell Microcap by 1371 bps, S&P 500 by 2537 bps. The “CS 21 Net/Net Index” was “the first [...]
Net current asset value and net net working capital back-test refined
Posted in About, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, tagged Liquidating Value, Liquidation Value, Net Cash Stock, Net Current Asset Value, Net Net, Net Net Stock, Net Quick Value on February 19, 2010 | 2 Comments »
Jae Jun at Old School Value has updated his great post back-testing the performance of net current asset value (NCAV) against “net net working capital” (NNWC) by refining the back-test (see NCAV NNWC Backtest Refined). His new back-test increases the rebalancing period to 6 months from 4 weeks, excludes companies with daily volume below 30,000 shares, and introduces the [...]
Back-testing the performance of net current asset value against net net working value
Posted in About, Liquidation, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Liquidating Value, Liquidation, Liquidation Value, Net Current Asset Value, Net Net, Net Net Stock, Net net working capital, Net Quick Value on February 18, 2010 | 3 Comments »
Jae Jun at Old School Value has a great post, NCAV NNWC Screen Strategy Backtest, comparing the performance of net current asset value stocks (NCAV) and “net net working capital” (NNWC) stocks over the last three years. To arrive at NNWC, Jae Jun discounts the current asset value of stocks in line with Graham’s liquidation value [...]
Walking the talk: Applying back-tested investment strategies in practice
Posted in About, Behavioral economics, Contrarian investment, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Quantitative investment, Stocks, Value Investment, tagged Liquidation, Liquidation Value, NCAV, Net Current Asset Value, Net Net, Net Net Stock, Net Quick Value, Quantitative, Value Investment on February 17, 2010 | 8 Comments »
Aswath Damodaran, a Professor of Finance at the Stern School of Business, has an interesting post on his blog Musings on Markets, Transaction costs and beating the market. Damodaran’s thesis is that transaction costs – broadly defined to include brokerage commissions, spread and the “price impact” of trading (which I believe is an important issue [...]
The Kabuki narrative
Posted in About, Behavioral economics, Liquidation, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, tagged Japan, Liquidating Value, Net Current Asset Value, Net Net Stock, Net Quick Value on February 12, 2010 | 5 Comments »
Regular readers of Greenbackd know that I’m no fan of “the narrative,” which is the story an investor concocts to explain the various pieces of data the investor gathers about a potential investment. It’s something I’ve been thinking about a great deal recently as I grapple with the merits of an investment in Japanese net [...]
5 big Japanese Graham net nets
Posted in About, Liquidation Value, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Value Investment, tagged Japan, Liquidating Value, Liquidation Value, Net Cash Stock, Net Current Asset Value on February 10, 2010 | 5 Comments »
In his Are Japanese equities worth more dead than alive?, SocGen’s Dylan Grice conducted some research into the performance of sub-liquidation value stocks in Japan since the mid 1990s. Grice’s findings are compelling: My Factset backtest suggests such stocks trading below liquidation value have averaged a monthly return of 1.5% since the mid 1990s, compared to -0.2% [...]
-
Twitter Updates
- @jasonzweigwsj Is Warren Buffett skilled or lucky? Yes? 18 hours ago
- How to estimate the long-term return on stocks: What does the future hold? wp.me/pnq1T-1uD 21 hours ago
- How to estimate the long-term return on stocks wp.me/pnq1T-1um 1 day ago
- Buffett buys newspaper division of Media General $MEG wp.me/pnq1T-1ui 2 days ago
- The next Srinivasa Ramanujan? Humble 16-yr-old Shouryya Ray solves 350-year-old maths problem set by Sir Isaac Newton bit.ly/LEt2On 4 days ago
-
Top Posts
- How to estimate the long-term return on stocks: What does the future hold?
- How to estimate the long-term return on stocks
- Man versus Magic Formula: Joel Greenblatt's Value Investors' Club vs his Little Book
- Active versus passive value investing: Does spending time researching a company’s fundamentals generate higher returns?
- About
Seeking Alpha Contributor
Blogroll
- Abnormal Returns
- Breakout Performance
- Calculated Risk
- Cheap Stocks
- Compounding Machines
- Controlled Greed
- Dealbook
- Distressed Debt Investing
- Empirical Finance Research
- footnoted.org
- Graham NCAV Screen
- GuruFocus
- Hedge Fund Jobs
- Insider Monkey
- Manual of Ideas
- Official Activist Investing Blog
- Old School Value
- Oozing Alpha
- Shadowstock blog
- Simoleon Sense
- Stingy Investor
- Street Capitalist
- SumZero
- Value Investing Blog
- Value Uncovered
- Yes and Not Yes
Archives
- May 2012
- April 2012
- February 2012
- December 2011
- November 2011
- July 2011
- June 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
