Good Articles to Share
Why we invest the way we do? - Walter Schloss
Walter Schloss and his value investing strategy kcchongnz
calvintaneng After Benjamin Graham I think I like Walter Schloss more than Warren Buffet.
1) Walter Schloss is a Deep Value Hunter. He doesn't care whether it is monday or friday, the beginning or ending of the month or what time of the year. He will buy up Cheap Undervalued Stocks as long as he is able to unearth them. And hold on to them until VALUE EMERGE SOMEDAY.
2) And since most Undervalued Stocks Are ALWAYS UNPOPULAR he did not even want to disclose them to his Investors. Walter manages investments for over 90 individuals or corporations.
Some having learnt what Walter bought in his Portfolio might Get A Shock by Walter's Stock Selection on SO UNPOPULAR STOCKS That THEY WITHDRAW THEIR FUNDS AND GO ELSEWHERE. So For The Most Part Walter Try Not To Reveal To His Investors What He Bought - mostly out of favour stocks.
And Walter Schloss did very well for a very long stretch of over 40 years. He only under performed for 7 years out of 40.
3) The Office of Walter Schloss is very modest. A very tiny office with old worn out table and chair. He has an old type writer. The entire set up cost less the $3,000. (Warren Buffet bought a 2nd hand car although he could afford to buy up all the New Car Companies in USA.)
This mentality of avoiding unnecessary spending and wastage and putting Cash into compounding investment has resulted in over 20% growth for a 40 long year stretch in Value Investing.
3) And Walter and his son keep to themselves for most of the time. They seldom communicate with others for 2 reasons:
i) Since Most Value Stocks Are Out of Favour due to some problems The Investing Public Shun Them. So there is little in common between Walter Schloss & Mr. Market. They wouldn't understand Walter. They most probably criticize and reject him.
ii) By not disclosing his stock picks to others Walter hope to get them cheaper. His sifu Benjamin Graham is very generous in telling the next tips. And so before Ben could buy more - others have loaded up and Ben has to pay higher prices or he will miss the chance himself.
4) STRESS FREE
I think this is what I like best about Walter. Peter Lynch did very well. But the heavy stress took a toll on Peter and his hair turned grey prematuredly. He has to go into early retirement to preserve his life.
For Walter he has A Very Solid Portfolio Backed by HUGE MARGIN OF SAFETY. No fear of Market Crash as THEY ARE HIGHLY DEFENSIVE. And 40 Years of Investment Success Is A Testament That Value Investing Is The Way To Go.
However, the majority of the people has an ingrained perversity to Avoid Value Investing because they called it as "Problem companies", "Value Traps" or any such negative stuff that must be avoided by all means.
Only a very few will chose to follow the unpopular style of Walter Schloss in a lonely path of patient waiting. But I am definitely one of them so count me in.
1) Walter Schloss is a Deep Value Hunter. He doesn't care whether it is monday or friday, the beginning or ending of the month or what time of the year. He will buy up Cheap Undervalued Stocks as long as he is able to unearth them. And hold on to them until VALUE EMERGE SOMEDAY.
2) And since most Undervalued Stocks Are ALWAYS UNPOPULAR he did not even want to disclose them to his Investors. Walter manages investments for over 90 individuals or corporations.
Some having learnt what Walter bought in his Portfolio might Get A Shock by Walter's Stock Selection on SO UNPOPULAR STOCKS That THEY WITHDRAW THEIR FUNDS AND GO ELSEWHERE. So For The Most Part Walter Try Not To Reveal To His Investors What He Bought - mostly out of favour stocks.
And Walter Schloss did very well for a very long stretch of over 40 years. He only under performed for 7 years out of 40.
3) The Office of Walter Schloss is very modest. A very tiny office with old worn out table and chair. He has an old type writer. The entire set up cost less the $3,000. (Warren Buffet bought a 2nd hand car although he could afford to buy up all the New Car Companies in USA.)
This mentality of avoiding unnecessary spending and wastage and putting Cash into compounding investment has resulted in over 20% growth for a 40 long year stretch in Value Investing.
3) And Walter and his son keep to themselves for most of the time. They seldom communicate with others for 2 reasons:
i) Since Most Value Stocks Are Out of Favour due to some problems The Investing Public Shun Them. So there is little in common between Walter Schloss & Mr. Market. They wouldn't understand Walter. They most probably criticize and reject him.
ii) By not disclosing his stock picks to others Walter hope to get them cheaper. His sifu Benjamin Graham is very generous in telling the next tips. And so before Ben could buy more - others have loaded up and Ben has to pay higher prices or he will miss the chance himself.
4) STRESS FREE
I think this is what I like best about Walter. Peter Lynch did very well. But the heavy stress took a toll on Peter and his hair turned grey prematuredly. He has to go into early retirement to preserve his life.
For Walter he has A Very Solid Portfolio Backed by HUGE MARGIN OF SAFETY. No fear of Market Crash as THEY ARE HIGHLY DEFENSIVE. And 40 Years of Investment Success Is A Testament That Value Investing Is The Way To Go.
However, the majority of the people has an ingrained perversity to Avoid Value Investing because they called it as "Problem companies", "Value Traps" or any such negative stuff that must be avoided by all means.
Only a very few will chose to follow the unpopular style of Walter Schloss in a lonely path of patient waiting. But I am definitely one of them so count me in.
18/05/2014 09:27
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
alphajack
Exactly. Many people are too busy chasing hot stocks like Inari, OCK etc. that they managed to miss out good stocks like Bonia, Eupe or Uzma which does not move as fast on a regular basis but their depressed price makes them very valuable growth stocks and the fact that they're not really popular yet. Imagine when a big fund sees the potential in them and pump inside an enormous amount of funds. Easy money right there. Always realize that in a semi-efficient market, the market may not be aligned with intrinsic value sometimes, and there may be many overvalued stocks like DBHD which could fall anytime and undervalued stocks like Uzma which could shoot up anytime. One thing is for certain, financial statements never lie!!
2014-05-18 19:40