Returns for Great vs. Bad Businesses

Munger and The Cattle Rancher

Munger’s ability to find great businesses is directly related to his ability to consistently discard bad businesses. He is excellent at inverting, and discarding the bad businesses as quickly as possible.

Read More »

The Abominable No-Man and Bad Management

Some investors think a business is good, but know that management is bad.  These investors justify the investment based on the idea that the great price of the business is worth the bad management. This is akin to marrying a supermodel who is going to yell at you all day.  Whatever pleasure your eyes may derive from the marriage, your ears will endure a greater amount of pain in the long run. The pocketbooks of those partnering with bad management are likely to see a similar 50%+ decline in their net worth.

Read More »

Buffett and Market Forecasting

I enjoy the Reese’s Peanut Butter Eggs.  They are on sale during Easter as are other shapes on different holidays (christmas trees, etc).  Fortunately, I don’t care if I eat them before or after Easter, so I know I can always get a discount the day after Easter.  On the

Read More »

Of Castles and Moats

Earlier this year, my family and I spent some time in India.  I would estimate about 50% of the main tourist attractions in India are Castles or Forts–I am not completely clear what the difference is between the two.  Most of these castles have large moats around them.  I snapped

Read More »

Carmen Segarra and David Sokol…and a Streetlight

Buffett likes to quip that “If past history was all there was to [investing], then the richest people would be librarians.” An addition might be, “If accounting was all there was to investing, accountants would be the richest people.” This American Life had an interesting podcast this past week, “The

Read More »

Russian Astronauts, NFL and Munger vs. Graham

This past week, Munger made the following remark: “I don’t love Ben Graham and his ideas the way Warren does. I think Ben Graham wasn’t nearly as good an investor as Warren Buffett is or even as good as I am.  Buying those cheap, cigar-butt stocks [companies with limited potential

Read More »

Clippers’ Owner Comments on Recent Tech Announcement…

In honor of a certain announcement out of Cupertino tomorrow, see this great video of Steve Ballmer’s commentary shortly after the introduction of the iPhone.  He mentions the  Motorola Q as being a great phone in the market place and how the Zune has taken 20%-25% of the portable listening market (the

Read More »

Mrs. B and Blackberry

The story of Rose Blumkin (“Mrs. B.”) is almost legend at this point in the study of value investing and Buffett.  Her story is quite amazing if you have never read it.  Featured in both biographies of Buffett (The Making of an American Capitalist and Snowball). Buffett’s due diligence and

Read More »

11th Commandment of Investment Study

“Nobody goes to church expecting to learn about the 11th commandment.” Regardless of one’s religious views, it’s pretty clear that most religious people do not expect to receive the 11th commandment this Sunday (or Friday).  Many religions study the same passages in the same books over and over.  The point

Read More »

Buffett’s Institutional Imperative–Alive and Well

Buffett wrote about the “institutional imperative” in his 1989 annual letter.  His comments on his “most surprising discovery” are at the bottom.  It pays to read the old stuff and it is interesting to see it in all of its forms on a daily basis.  A few weeks back, the SEC

Read More »
JOIN THE SOVA GROUP DISTRIBUTION LIST

Close Menu