Blueroselady's Weblog

I wish you abundant happiness, health & wealth

Book: Trade like Warren Buffett

leave a comment »

By James Altucher

page 81
Margin of safety?
Buying a stock that is trading at 2/3 of its liquidation value (Graham-Dodd).
Buffett moved beyond that understanding in early 60s, focused more on qualitative aspects:
brand value, earnings growth,

page 155
A closed-end fund: a fund whose shares trade on the stock exchange like any other company.
Unlike an open-end fund, a closed-end fund has a fixed num of shares and no longer accepts inflows / outflows of money.
e.g. Berkshire Hathaway

page 160
Closed-end funds are not popular investments.
Poor performance frightens off investors.
The NAV might include capital gains that have yet to be taxed. The shares will reflect this tax liability by trading at a discount.
There are too many illiquid / hard-to-value securities in the portfolio.

Adv of investing in closed-end fund : they often pay high dividends.

page 175
The value investor’s lament:
We always sell too early, because we have to sell in order to keep the margin of safety.

Other books to read:
Buffettology
American Capitalist by Roger Lowenstein

Advertisements

Written by blueroselady

November 28, 2009 at 3:37 pm

Posted in finance

Tagged with

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: