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Stinginess Works: Why I'm a Value Investor


Parsad

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Our own NormR is going to be sharing some stories on value investors over the next little while for the Globe & Mail.  Here is the introductory article.  Cheers!

 

http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/value-investing/stinginess-works-why-im-a-value-investor/article4548173/

 

NormR's portfolio let me grin,... good choices, not only FFH, BAC, AIG, BRK,... but also specially GM & DELL... well, and of course LUK. Only some minor drawback is that he seems to use some 10/10 portfolio structure and is not weighting his bets more uneven, which would make more sense in my eyes. I myself would weight the most discounted companies extremly higher, but it seems Norm tries to comfort most G&M readers, since the most aren't probably used to portfolio volatility.

 

http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/norman-rotherys-model-value-portfolio/article4547895/

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Thanks for the link Sanjeev!  I'll be trying to spread value investing love far and wide.  8)

 

So, let me know about any value investors / ideas that deserve to get a little more attention.  ;D

 

If you are dealing with Canadians primarily...start with Prem!  Cheers!

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Thanks for the link Sanjeev!  I'll be trying to spread value investing love far and wide.  8)

 

So, let me know about any value investors / ideas that deserve to get a little more attention.  ;D

 

Maybe you can try to get a flash-mop of 1,000 financial hippies to next year shareholder dinner at the Fairmont Royal York,... smashing the room, while Buffett and Bon Jovi perform on stage.  ;D

 

Sanjeev would probably run wild through the room, wondering what has happened?

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NormR's portfolio let me grin,... good choices, not only FFH, BAC, AIG, BRK,... but also specially GM & DELL... well, and of course LUK. Only some minor drawback is that he seems to use some 10/10 portfolio structure and is not weighting his bets more uneven, which would make more sense in my eyes. I myself would weight the most discounted companies extremly higher, but it seems Norm tries to comfort most G&M readers, since the most aren't probably used to portfolio volatility.

 

I have to give a good deal of credit to this fine forum for many of the ideas.  I also pillaged the portfolio of several notable value investors such as Mohnish Pabrai for a few stocks.  Many thanks!

 

More generally, I want to incorporate a little more copying into my process and the new column/blog should help me set aside some dedicated time to do so.

 

As to portfolio construction, I deliberately stuck to larger and more liquid names.  While I tend to follow a bunch of less liquid and smaller stuff myself, it's hard to suggest to a non-specialist audience.   

 

I also gave some thought to non-equal weighting but I didn't want to effectively narrow an already rather focused portfolio.  Again, the non-specialist audience should lean to more diversified portfolios.  (It's also why a few, let's call them,  investment conglomerates were included.)

 

So, in some ways a few compromises were made but I think it should be an interesting little portfolio nonetheless.

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Maybe you can try to get a flash-mop of 1,000 financial hippies to next year shareholder dinner at the Fairmont Royal York,... smashing the room, while Buffett and Bon Jovi perform on stage.  ;D

 

LOL.  Why do I get visions of The Sorcerer's Apprentice (http://www.youtube.com/watch?v=jSTWy25hRiI).  ;D

(I'm even worse when it comes to typos!)

 

As it is, the dinner is getting pretty huge which is a testament to Sanjeev's hard work and dedication.  I'm looking forward to the next meeting!

 

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