Investment Philosophy Archive

Buybacks vs. Dividends

The results are in!  Last week’s poll at Value Investing News asked, “As a shareholder, which would you rather have? Buybacks, dividends, or other.” Twenty-nine of you voted and here are the results:

Your Margin of Safety

The results are in!  Last week’s poll at Value Investing News asked, “What is your minimum required margin of safety for buying stocks?”  Sixty-eight of you voted and here are the results: Responses ranged from under 10% to over 60%.  The most popular response was for a margin of safety between 25% and 32%.  I voted

What’s Your Margin of Safety?

I have a poll running at Value Investing News regarding margin of safety.  I’ve been struggling with my own thoughts on margin of safety, so I thought I would ask others what they consider to be an adequate margin of safety to intrinsic value before buying a stock.  Here’s what I’m asking: What is your

Hustler Lesson: Importance of Measuring

I watched an entertaining video this weekend on a simple bar room hustle (via Wise Bread). This hustle involves betting a bar patron that the distance around the mouth of beer pint glass is longer than the distance from the rim of the glass to the table even when it is propped up by several ashtrays.  Any guess at

Ten Ways to Build Moats to Hold Back Competition

Competition impacts every aspect of your life. It is an evolutionary and economic force that shapes our world. Its results are visible in the way species have adapted and which corporations have grown into global giants. Success is often a measure of your ability to maintain a competitive advantage. In economic activities ranging from your online

Notes on Charlie Rose Show’s Warren Buffett: The Business

I hope you have gotten a chance to either read my notes or watch part one of the Charlie Rose Show’s Warren Buffett: The Man. I found it pretty fascinating. Today, I want to share my notes on part two of this series called, Warren Buffett: The Business (click on the link to see the video): The

Exploring Greenblatt’s Magic Formula

I’ve been exploring the Magic Formula detailed in Joel Greenblatt’s latest book, The Little Book That Beats the Market. I must admit that I am leery of any formula that mechanically selects stocks, however, the concept of having a list of great companies selling at good values piques my interest.

Spying On the Top Mutual Fund Stock Picks

Great ideas for investment opportunities can often be found when reviewing the investment decisions of great investors.  When Barron’s reported on 19 mutal funds that have beaten famed mutual fund manager Bill Miller over the past 15 years, I decided to take a closer look at the holdings of these top fund managers.  Below I

Why I Study Warren Buffett

You might wonder why I spend so much time discussing and referring to Warren Buffett here at Fat Pitch Financials. I just ran across an academic article that might help support why I think Warren Buffett’s approach to investing is superior to the market average.

Brands versus Franchises

I discovered an interesting conversation occurring over at the Applying Value Investing Principles in Indian Context blog. The discussion concerned brands and their relationship to franchises (i.e., profitable businesses). I often look for a strong brand when determining if a company has a wide moat. The discussion I just read lead me to a question.