May 25, 20242 min read

Newsletter - May 25th, 2024

Dear Reader,

Attached is our latest list of stocks passing value screens (below net current asset value, tangible equity, etc.), which don’t meet our investment criteria - and our reasoning.

This may help you avoid some ‘value traps’, and stocks that aren’t sufficiently attractive compared to opportunities available today.

For reports of stocks that pass our quantitative and qualitative standards:

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Berkshire 2024: Part Three (Final)

Some notes on the final part of Berkshire's AGM below:

3:06:00 Businesslike investing

Though it may be profitable to pursue a statistical approach in common stock investing with smaller sums, the more you understand the business - the better.

As Ben Graham said: "Investing is most intelligent when it's most businesslike".

3:08:45 Vulnerability of the financial system

The more complicated (and intertwined) the financial system gets - the more vulnerable it becomes.

The chances of severe breakdowns "once every 10 years" are not insignificant. It's best for smaller investors to be psychologically (and financially) prepared for them.

3:28:00 Decision process

Buffett talks through his understanding of consumer behavior when investing (See's Candies, Nebraska Furniture Mart, Apple, etc.). The buy decision is fast but the prep work was done in preceding years - most knowledge is cumulative.

3:54:00 50% returns

With smaller sums, Buffett would go through all securities and pick the best value - usually in obscure small stocks.

Even if smaller investors aren't as talented as Buffett, they can do well operating in smaller stocks (as we do with sub-working capital stocks).

4:00:00 The Power of Incentives

Human behavior is driven by incentives. Figure out people's incentives, and you can predict their behavior.

4:24:00 Peace of mind

Outperforming the index isn't as important as peace of mind (though that's our job). Regardless, value investing is a safe and comfortable way to invest.

Newsletter - May 25th, 2024

Dear Reader,

Attached is our latest list of stocks passing value screens (below net current asset value, tangible equity, etc.), which don’t meet our investment criteria - and our reasoning.

This may help you avoid some ‘value traps’, and stocks that aren’t sufficiently attractive compared to opportunities available today.

For reports of stocks that pass our quantitative and qualitative standards:

Berkshire 2024: Part Three (Final)

Some notes on the final part of Berkshire's AGM below:

3:06:00 Businesslike investing

Though it may be profitable to pursue a statistical approach in common stock investing with smaller sums, the more you understand the business - the better.

As Ben Graham said: "Investing is most intelligent when it's most businesslike".

3:08:45 Vulnerability of the financial system

The more complicated (and intertwined) the financial system gets - the more vulnerable it becomes.

The chances of severe breakdowns "once every 10 years" are not insignificant. It's best for smaller investors to be psychologically (and financially) prepared for them.

3:28:00 Decision process

Buffett talks through his understanding of consumer behavior when investing (See's Candies, Nebraska Furniture Mart, Apple, etc.). The buy decision is fast but the prep work was done in preceding years - most knowledge is cumulative.

3:54:00 50% returns

With smaller sums, Buffett would go through all securities and pick the best value - usually in obscure small stocks.

Even if smaller investors aren't as talented as Buffett, they can do well operating in smaller stocks (as we do with sub-working capital stocks).

4:00:00 The Power of Incentives

Human behavior is driven by incentives. Figure out people's incentives, and you can predict their behavior.

4:24:00 Peace of mind

Outperforming the index isn't as important as peace of mind (though that's our job). Regardless, value investing is a safe and comfortable way to invest.

4:28:30 Advice on wills

Tear out old versions of your will instead of making adjustments.

4:46:30 Limited time

Don't regret the past - just make the best use of the time available.

For reports on the best investment values in stocks worldwide:

Wish you an excellent week ahead.

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