Categories
Investing Master Class

Valuation in Four Lessons: Aswath Damodaran

Aswath Damodaran (born 23 September 1957), is a Professor of Finance at the Stern School of Business at New York University (Kerschner Family Chair in Finance Education), where he teaches corporate finance and equity valuation.

Known as “Dean of Valuation” due to his expertise in that subject, Damodaran is best known as author of several widely used academic and practitioner texts on Valuation, Corporate Finance and Investment Management; he is widely quoted on the subject of valuation, with “a great reputation as a teacher and authority”. He has written several books on equity valuation, as well as on corporate finance and investments. He is widely published in leading journals of finance, including The Journal of Financial and Quantitative Analysis, The Journal of Finance, The Journal of Financial Economics and the Review of Financial Studies. He is also known as being a resource on valuation and analysis to investment banks on Wall Street.

Categories
Master Class

The Psychology of Human Misjudgement – Charlie Munger Full Speech

Charles Thomas Munger is an American billionaire investor, businessman, former real estate attorney, architectural designer, and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett; Buffett has described Munger as his closest partner and right-hand man.

The following is audio of the often referred to speech by Charlie Munger on the psychology of human misjudgement given to an audience at Harvard University circa Jun 1995. Mr. Munger speaks about the framework for decision making and the factors contributing to misjudgements.

Categories
Master Class

Daniel Kahneman and Yuval Noah Harari: ‘Global Trends Shaping Humankind’

Fictions, rising income inequality, people as cats, AI, dictators, conspiracy theories and more…

Categories
Investing Master Class Wealth

Charlie Munger, Vice Chairman of Berkshire Hathaway, speaks at the Daily Journal Annual Meeting

Some notable quotes from Charlie Munger at the recent Daily Journal Annual Meeting:

Categories
Investing Master Class

Peter Lynch: 10 Most Dangerous Things People Say About Stocks

1) If it’s gone down this much already, it can’t get any lower.
2) No Debt
3) If it’s gone this high already, how can it possibly go higher.
4) Eventually they always come back
5) It’s $3, how much can I lose.
6) It’s always darkest before the dawn.
7) When I rebound to 10, I’ll sell.
8) I don’t have to worry, I own conservative stocks.
9) Look at all the money I lost, because I didn’t buy.
10) Stock has gone up I must be correct, it gone down I must be wrong.
11) Avoid long shots

Categories
Investing Master Class

Dec 14 In Depth Cal-Tech Interview with Charlie Munger

Charlie Munger is an American investor, businessman, former real estate attorney, architectural designer, and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett.

Categories
Investing Master Class

Philip Fisher’s 15 Points to Look for in Common Stock

Philip Arthur Fisher (September 8, 1907 – March 11, 2004) was an American stock investor best known as the author of Common Stocks and Uncommon Profits, a guide to investing that has remained in print ever since it was first published in 1958.

Fisher made his clients extraordinarily rich and is recognized by Morningstar as “one of the great investors of all time”. Despite this, he isn’t well known.

Although Fisher was known as a growth investor, top value investors like Warren Buffett were influenced by his work. Buffett has called Fisher’s book “Common Stocks and Uncommon Profits” a “very, very good book”.

Fisher’s methodology was to conduct extensive research on industries and companies. Below are 15 key considerations that he used to help frame his research.

15 Points to Look for in a Common Stock

  1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
  2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
  3. How effective are the company’s research and development efforts in relation to its size?
  4. Does the company have an above-average sales organization?
  5. Does the company have a worthwhile profit margin?
  6. What is the company doing to maintain or improve profit margins?
  7. Does the company have outstanding labor and personnel relations?
  8. Does the company have outstanding executive relations?
  9. Does the company have depth to its management?
  10. How good are the company’s cost analysis and accounting controls?
  11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?
  12. Does the company have a short-range or long-range outlook in regard to profits?
  13. In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders’ benefit from this anticipated growth?
  14. Does the management talk freely to investors about its affairs when things are going well but “clam up” when troubles and disappointments occur?
  15. Does the company have a management of unquestionable integrity?

Categories
Life Master Class Work

Warren Buffet & Charlie Munger on Capitalism

Categories
Investing Master Class

Warren Buffett & Charlie Munger (1995 Interview): Moats, Castles and Lords

Warren Buffett and Charlie Munger get questioned about their investing principles at the 1995 Berkshire Hathaway annual meeting.

“We’re trying to find a a business with a wide and long lasting moat around it surrounded and with protecting a terrific economic Castle with an honest Lord in charge.” — Warren Buffett (1995)

Categories
Investing Master Class

Warren Buffett (1985 Interview): How to Pick Stocks

Rare Warren Buffett Interview: How to Pick Stocks & Get Rich (1985).

  • What kind of person makes a good investor?
  • The 1000 missed pitches theory and why Warren Buffett doesn’t invest in technology
  • Why Warren Buffett avoided New York City and Wall Street
  • What if the stock market didn’t open tomorrow?