Thought Bubbles from the Deep

[DeepState]

As a low IQ investor I find that Howard is just a bit too smart for me....and leaves me with more questions than answers, which is a healthy thing of course. Investing is exceptionally hard, and to think otherwise betrays a lack of depth of thought.

Whatever your investment IQ might be in reality, it seems that Howard and you have at least one point of view in common:

 

[The Falcon]

Ha indeed. Just realised that IQ was on display referring to you as DV. The change from RY has thrown me, and my cognitive bias has me reading "DeepState" and it becoming "deep value", hence DV. I need to lay off the investment books for a while.

 

[DeepState]

Ha indeed. Just realised that IQ was on display referring to you as DV. The change from RY has thrown me, and my cognitive bias has me reading "DeepState" and it becoming "deep value", hence DV. I need to lay off the investment books for a while.

Change of year, change of name. I like this DS one more. I gave it more thought. The avatar is an indirect double-meaning. One is a power behind the puppet concept. Evident enough. The other is "talk to the hand, the face don't want to hear it". I've not had immediate cause to use this meaning since taking it up.

Currently reading "Margin of Safety" by Seth Klarman of Baupost Capital on the advice of a seemingly retired ASF poster 'Sinner' - who is one seriously high-IQ guy. OMG. Some people here are right out of the box.

Klarman is another legendary value investor. It is interesting to compare/contrast these guys. Lots of overlap and then disagreement too. I think it might be useful to conduct a comparative analysis on Graham, Buffett, Klarman and Marks. Note to self: stop screwing around and get this done.

What's caught your attention lately on the reading front? I have nothing on my list, which reflects my lack of imagination or initiative as much as anything.

 

[burglar]

... I have nothing on my list, which reflects my lack of imagination or initiative as much as anything.

I'd have thought it reflects your speed reading combined with your voracious appetite!

 

[systematic]

I'd have thought it reflects your speed reading combined with your voracious appetite!

...anyone got something to read with this? corn:

 

[qldfrog]

A talk by Howard Marks at Google on 27 March on "the most important thing". Long but entertaining, bear with it.

https://m.youtube.com/watch?v=6WroiiaVhGo

Really good stuff... I think you will enjoy it DV.

Many thanks: i really appreciated the talk

 

[qldfrog]

I'd have thought it reflects your speed reading combined with your voracious appetite!

And newly found free time ? Good on you

 

[odds-on]

Change of year, change of name. I like this DS one more. I gave it more thought. The avatar is an indirect double-meaning. One is a power behind the puppet concept. Evident enough. The other is "talk to the hand, the face don't want to hear it". I've not had immediate cause to use this meaning since taking it up.

Currently reading "Margin of Safety" by Seth Klarman of Baupost Capital on the advice of a seemingly retired ASF poster 'Sinner' - who is one seriously high-IQ guy. OMG. Some people here are right out of the box.

Klarman is another legendary value investor. It is interesting to compare/contrast these guys. Lots of overlap and then disagreement too. I think it might be useful to conduct a comparative analysis on Graham, Buffett, Klarman and Marks. Note to self: stop screwing around and get this done.

What's caught your attention lately on the reading front? I have nothing on my list, which reflects my lack of imagination or initiative as much as anything.

Here are some suggestions:

The Basic Writings of Bertrand Russell. A collection of essays on a wide range of topics.
23 Things They Don't Tell You About Capitalism by Ha-Joon Chang.
Economics: The User's Guide by Ha-Joon Chang.
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2384984/ - this guy is good.

Happy reading.

Cheers.

 

[DeepState]

Here are some suggestions:

The Basic Writings of Bertrand Russell. A collection of essays on a wide range of topics.
23 Things They Don't Tell You About Capitalism by Ha-Joon Chang.
Economics: The User's Guide by Ha-Joon Chang.
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2384984/ - this guy is good.

Happy reading.

Cheers.

Thanks for the tips. Hv read both books by Chang previously and can confirm that they were a refreshing heterodox viewpoint on what actually happens behind he headline claims. The mention of Russell has reminded me that "History of Western Philosophy" would make a good read over an Easter weekend.

Nice one.

Happy Easter.

 

[The Falcon]

DS, haven't read margin of safety, but know it's highly regarded and print copies sell for near $1k (!).

Just looked at the 3 piles of books on my bedside table, and of the lot of them I recommend to you ;

Education of a value investor, Guy Spier
Devil take the hindmost, Edward Chancellor
Poor Charlie's Almanack, Kaufman. A coffee table classic!
Influence, the psychology of persuasion, Cialdini

As general primers for beginners I really like ;

The Economist guide to investment strategy, Stanyer
A random walk, Malkiel
Beating the street, Lynch
Common sense on mutual funds, Bogle


Good bed time reads ;

Buffett, the making of an American capitalist, Lowenstein
Kerry Stokes, the boy from nowhere, Rule
Made in America, Sam Walton
Business Adventures, Brooks

General kick up the **** / pump up material ;

The prosperity bible, Hill, Franklin, Allen etc - a classic!
Mindset, Dweck

Special interest (value related)

The manual of ideas, Mihaljevic
Berkshire beyond Buffett, Cunningham

And to keep all this stuff in perspective....

Endurance, F.A. Worsley
A fortunate life, Albert Facey

 

[galumay]

If anyone wants a copy of "Margins of Safety", pm for a link.

 

[tech/a]

Would that be it?

http://www.glenbradford.com/files/S...or the Thoughtful Investor - Seth Klarman.doc

 

[galumay]

Different link, I just wasnt sure of the legalities of the downloads so I didnt want to put up a direct link. Mine is also a pdf which means you can read it in iBooks if you prefer.

 

[DeepState]

Just looked at the 3 piles of books on my bedside table, and of the lot of them I recommend to you ;

The Economist guide to investment strategy, Stanyer
A random walk, Malkiel
Beating the street, Lynch
Common sense on mutual funds, Bogle



General kick up the **** / pump up material ;

The prosperity bible, Hill, Franklin, Allen etc - a classic!
Mindset, Dweck

You can't be describing a bedside table with that list. You must have a bookshelf there! Thanks!

Of the investment primers reading, I have already had the chance to review each, except for Stanyer....who I used to report to a couple of decades ago! Small world. Very nice man..

Dweck is great. If you are into this, I can add to your list...and bedside shelf.

Thanks again.

 

[The Falcon]

Just some of the titles in three stacks up to lamp shade height on the bed side table...new house, so new bookshelves are required according to my wife

Small world eh, Stanyer's book is an ideal starting point. Rather than pile in to a property or stock forum and put the blinkers on, as many investors do, his book is a fantastic starting point for anyone interested in investing. his work is rigorous and thorough. Having picked up a copy of 2 Oz property invesment "classics" It could not be further away from the tripe espoused in these books when talking about other asset classes, risk and expected returns. On the latter, Marks would not approve.

 

[DeepState]

From Klarman (in 1991.....):



Why is dividend yield on stock so often seen in the same light as interest yield on cash?

 

[tech/a]

From Klarman (in 1991.....):

View attachment 62192

Why is dividend yield on stock so often seen in the same light as interest yield on cash?

Return on Parked capital.
But unlike cash at bank the cash itself can
Lose or gain value.

 

[The Falcon]

"Beware the yield trap" one of Thornhill's favourite themes, and a cracker it is too. Yield ain't yield. I have some thoughts on this but at the tail end of a good cab/shiraz so will leave it for another day!

 

[skyQuake]

Current read:

https://www.farnamstreetblog.com/mental-models/

Lots of excerpts of Charlie Munger

 

[McLovin]

From Klarman (in 1991.....):

View attachment 62192

Why is dividend yield on stock so often seen in the same light as interest yield on cash?

Overheard a few months ago getting my car washed...

"The banks pay good yields -- much better than cash -- and they're safe"

Although maybe not implied, I certainly inferred from that discussion that bank shares were an almost substitute for deposit accounts.

A dangerous belief to have.