valueandprices
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SEARCH STRATEGY by Bruce Greenblatt

Look intelligently for value opportunities. You must have search strategies. Every time you sell stock, someone else is buying that security. Vast majority—95%–is selling because the stock will go down versus buying because the stock is going up. You seek a seller that is motivated by psychological imperatives other than the underlying value. One person […]

Psychological factors - valueandprices
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Psychological Factors by Bruce C. Greenwald

Greenwald sees three psychological factors that best explain why certain stocks become undervalued. Psychological Factors by Bruce C. Greenwald  First, as Buffett himself said, value stocks don’t tend to have big payoffs. Their success is incremental; you won’t strike it rich overnight. They are in every sense the opposite of lottery tickets. And people love lottery […]

valueandprices
Blog

There are three ways to succeed as an investor

You can succeed intellectually, physically or emotionally. The intellectual way is how we would all like to succeed: being so smart that we understand things more clearly and see farther ahead than every other investor. The pre-eminent example, obviously, is Warren Buffett. But people like him are very, very, very rare. The physical way to succeed […]

valueandprices
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Cheung’s market mood model

There are six phases of market mood in Cheung’s model: Normal— This is the base-building or consolidation phase where fundamentals are poor but stabilizing. Value investors are showing interest. Hypomania— Favorable news shocks hit the market, and prices break higher out of consolidation. Speculators, focused on short-term gains, begin buying. As the market continues higher, […]

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Charlie Munger

Duty of Management is to “Widen” the Moat:

“So you do get an occasional opportunity to get into a wonderful business that’s being run by a wonderful manager.  And, of course, that’s hog heaven day.  If you don’t load up when you get those opportunities, it’s a big mistake.  … Averaged out, betting on the quality of business is better than betting on […]

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Charlie Munger

Components of a Moat: ( Competitive Advantage)

Charlie describes a moat in three different ways immediately below, each emphasizing the importance of the moat being able to maintain itself over time. “We have to have a business with some inherent characteristics that give it a durable competitive advantage.”   “The number one idea is to view a stock as an ownership of the […]