Investing legend John Bogle, founder of the Vanguard Group of Mutual Funds, writes in a guest column for The Wall Street Journal that investors continually ignore lessons of the past, which cost many dearly last year. Bogle offers six such lessons that we should not forget moving forward:
In a rare interview, retired value guru John Neff — who put together one of the best track records in history over his three-plus decades managing the Windsor Fund — tells Fortune that now is the time to buy stocks.
Advisor Perspectives turns out another good interview, this time with Fairholme Fund manager Bruce Berkowitz. Berkowitz’s leadership has helped turn the Fairholme Fund into one of the most successful funds around. Berkowitz takes time to discuss his investment process. Specifically, he says “we look at a company’s free cash flow relative to its price. Ideally, we look for a free cash flow yield of 10% or better. Then we ask what management will do with… Read More
In his “Ten Suprises for 2009” list, Pequot Capital Chief Investment Strategist Byron Wien says the coming year is likely to feature a number of major events — including a rebound in equities, a rush into gold, significant dollar declines, and the potential bankruptcy of New York State.
MSN.com’s Michael Brush writes today that the current tough times call for “a dose of optimism, wisdom, and insight”, and he thus offers 10 lessons on “the basics”, as taught by Warren Buffett. The lessons mostly focus not on financial expertise, but instead on psychology. “Buffett’s investment success comes from some easy-to-grasp human qualities as much as sophisticated expertise in balance sheets,” Brush writes.”Buffett would be the first to say his homespun and positive philosophy… Read More
The final tally from Warren Buffett’s 2008 buying spree: $20 billion-plus. “While most investors panicked or were forced to sell, [Buffett] put more than $20 billion to work last year, positioning his insurance-focused conglomerate to profit if the economy and markets recover in coming years,” writes Alistair Barr of MarketWatch. Buffett’s firm had about $44 billion in cash entering ’08, according to Barr, who notes that Buffett had had trouble finding attractively valued investments in… Read More
Money has been flowing out of mutual funds at an incredible rate in the past year, but three well-known fund managers see opportunity in the flight from stocks, BusinessWeek’s Tara Kalwarski writes. Kalwarski interviewed John Rogers of Ariel Fund, David Herro of Oakmark International Fund, and Tom Marsico of Marsico Focus Fund, and found that all are responding to big losses last year by doing quite a bit of bargain hunting right now. Rogers’ fund… Read More
Diehard value investors will appreciate the transcripts of lectures featured in “The Rediscovered Benjamin Graham: Selected Writings of the Wall Street Legend,” by Janet Lowe. Posted on John Wiley & Sons’ web site, the “lectures are from the series entitled Current Problems in Security Analysis that Mr. Graham presented at the New York Institute of Finance from September 1946 to February 1947.” A special thanks to Todd Sullivan (find him at http://valueplays.blogspot.com) for posting these… Read More
Ken Fisher, CEO of Fisher Investments and Forbes columnist, says “it’s better to be a little early than a little late getting back into stocks.” Fisher explains that the stock market is a discounting mechanism, representing “a guess about where the economy (and corporate profits) will be 6 to 24 months in the future.” Fisher warns not to expect an economic recovery before mid- to late-’09, but he says that does not mean that stocks… Read More
CNBC.com outlines eight timeless predictions by Warren Buffett on its Warren Buffett Watch blog. While CNBC labels these as predictions, we tend to think of these more like lessons that Buffett offers up to long-term stock market investors. After a year like 2008, Buffett’s lessons provide some perspective on dealing with recessions, bear markets and investor psychology. 1. Recessions can’t be avoided forever. 2. We’ll survive current and future recessions just as we’ve survived past… Read More