Evolution of “The Warren Buffet” & Timeless principles of success for peaceful investing
Introduction Warren Buffett, the son of US Congressman Howard Buffett and born in 1930, is one of the most admired investors of all time. Buffett was dubbed the Oracle of Omaha because of his investment selection and long-term success. Buffett is one of the world’s wealthiest persons, with an estimated worth of $82.4 billion, according […]
Understanding Post Earnings Announcement Drift and How to Benefit from this Situation?
History A company’s market value can be inferred from its earnings announcement, which is why it is so important. When earnings news surprises in either direction, either by beating or falling short of expectations, the stock market should react in a clear way. Ball and Brown (1968) were the first to report in a systematic […]
Special Situation Investing : A Guide to Low Risk Investments
What is Special Situation Investing? Special situations are distinct from the common occurrences in which businesses find themselves. It could take the form of a buyback, stock split, spin-off, tender offer, stake sale, merger, acquisitions, litigation, shareholder activism, bankruptcy, capital structure changes, CEO resignation, strike, lockout, or any other event that affects the company’s future […]
Second Level Thinking
It is important to have what is known as second-level thinking in order to succeed in investing. First-level thinking is simplistic and easy. It is also superficial. Many first-level thinkers don’t know what second-level thinking is. The difference between first-level thinking and second-level thinking will be clear with some examples. Examples of second level thinking […]
Value Lies Deep
Deep Value Investing Deep Value Investing is like paying for the tip and buying the iceberg, an investment strategy that asserts choosing stocks that are cheap and offer great value because not everyone understands investing where the focus is on buying stocks at a much higher discount to intrinsic value. Deep Value investing originated with […]
Circle of Competence- A Mental Model To Avoid Disasters In Investing
Understanding your Circle of Competence Over the past 10+ years, I’ve researched and built up a base of companies that are in the business which I understand well and would like to own at the right value (aka Value Investing). I tend to stay within this small circle of companies. It’s rare for me to […]