Carnival of Value Investing #7

Welcome to the May 7, 2011 edition of Carnival of Value Investing.

If nothing else, be sure to read the two articles by Mike at Planned Freedom below to get a good understanding of some of the valuation processes a value investor goes through when evaluating a stock. Jim’s interview with the managers of the Mackenzie Cundil Value Fund is also a great read to help you get inside the mind of some of the best value managers around. And as Tom from Canadian Finance Blog points out, with a little help from Mr Buffett, if you can’t understand a transaction or an asset in simple terms, avoid it.

Commentary

Tom presents Invest Early and Often: The Power of Compounding posted at StupidCents, saying, “Even though it seems like the market is making new lows daily, it’s important to remember the key to being a successful investor, ‘buy low and sell high’.”

Mike at Planned Freedom submitted two articles for this carnival and although I would prefer one article per site, in this case I will make an exception. These articles are awesome! You just paid WHAT for the stock? illustrates that why the market capitalization of a company is not the same as the enterprise value of the company. As an owner of the company you need to understand exactly what you received when you bought the shares and Mike walks us through the math in a very easy to understand terms. His next article,  Mr. Market just sold you WHAT? discusses what Owner’s earnings really are and in the process gives a stock tip that I fully approve of :-).

Tyler presents Dividend Growth Model posted at Dividend Money, saying, “A look at the Dividend Growth Model of investing and how to buy the best dividend growth stocks at the right price.”

Tom presents Two Lessons Learnt From Warren Buffet’s Interview posted at Canadian Finance Blog, saying, “I have always been a fan of the simplicity and clarity of Buffet’s ideas. These were two great lessons learnt from watching a short interview and reflecting on what he said.”

Outlaw presents Top 5 Common Investment Mistakes posted at Outlaw Finance: Investing Blog, saying, “Don’t make these common investing mistakes.”

Ken Faulkenberry presents Is Buy and Hold the Best Investment Strategy? posted at Arbor Asset Allocation Model Portfolio (AAAMP) Blog.

News

Jim Yih presents Mackenzie Cundil Value Fund posted at Retire Happy Blog, saying, “I talked to one of these traditional value players to try to understand the workings of a true value management style.”

That concludes this edition.

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