A quick tip for reducing the impact of the confirmation bias on your investing returns

Briefly, the confirmation bias occurs whenever individuals deliberately search for information that corroborates whatever decision they have either made, or would like to make. This is clearly hazardous to the investing process because it means that investors may really like a company for some inexplicable reason that is completely unrelated to the attractiveness of the… [Read More]

Quantitative Analysis Isn’t the Be All End All of Investing

“Not everything that counts can be counted, and not everything that can be counted counts.” -Albert Einstein Editor’s notes: Value investing is often seen as a science of carefully balancing various fundamental ratios, judging probabilities and running some arcane discount models. Ben Graham was certainly an advocate of looking at a business through the lens… [Read More]

14 Undervalued ADRs Worth Considering Investing In

Many stock watchers I respect are worried about a bubble in the US stock markets. Normally I look for valuation-price anomalies in individual securities but macro economic trends sometimes help me in sectoral allocation in my portfolio. If you are worried that the US markets are too rich, it may be a good idea to… [Read More]

Insider Buying Stock–Should You Care? How Much?

This is the often repeated mantra: If insiders are buying the stock, it is a positive indicator. After all, who better to know the current business environment and the future prospects of the company than the insiders. This argument makes perfect sense. Insiders may sell a stock for many reason – maybe they needs money… [Read More]

Rare Interview With Seth Klarman and Charlie Rose

This interview dates back to 2011. As you know, Klarman generally does not appear with media, so any interview you can find with him is pure gold. In this interview, Klarman talks about his philanthropic cause and spends a lot of time imparting his experience and wisdom on value investing. (For those who do not… [Read More]

Choices, Decisions & Common Sense and a Few Investing Stories You Very Likely Missed

Investment Choices Small

There is a significant difference between patience and indecision. When recommending or buying a stock, I will often wait patiently until the time and the price is just right. However, once the purchase decision is made, the execution is quick. Same holds for selling the stock. For example, if a stock is within my buy… [Read More]