The Values of Value Investing

Let’s think about the bible of value investing — Ben Graham’s 1949 The Intelligent Investor. Graham spent a lot of time talking about cheap stocks. He defined them as the ones that trade at single-digit price-earnings multiples, trade at a discount to book value, or trade below their cash value (net-nets). Graham placed great emphasis Read more about The Values of Value Investing[…]

The Pharma Stocks We’re Buying Now

Last week I explained why my firm is investing in pharmaceuticals stocks, despite the sector being a favorite punching bag of politicians. I noted that we have recently added to our existing positions in Amgen, Allergan, and Gilead Sciences, and I promised that I would unveil two new positions this week. Drumroll, please: Mylan Pharmaceuticals Read more about The Pharma Stocks We’re Buying Now[…]

Searching for Yield? Better to Look for Humility and Patience

The following is an excerpt from Investment Management Associates’ second-quarter letter to investors. The Great Recession may be over, but seven years later we can still see the deep scars and unhealed wounds it left on the global economy. In an attempt to prevent an unpleasant revisit to the Stone Age, global governments have bailed Read more about Searching for Yield? Better to Look for Humility and Patience[…]

Why do I torture my kids … with classical music?

Lately I’ve been pondering on this question. At first, it was a subconscious decision. Somewhat by inertia, I was following in the footsteps of my parents. That’s what they did, and that’s what I’m supposed to do. However, I realized recently that I am re-gifting a gift. Instilling a love of classical music is one Read more about Why do I torture my kids … with classical music?[…]

Gilead, Buy HIV, Get Hepatitis C for Free

We spent a lot of time this quarter talking to our colleagues in the investment industry, soliciting “the other side” argument for Gilead, trying to understand what we are missing about this stock. As we suspected most people cannot overcome the confluence of two business models inside one company: Gilead’s growing, annuity-like HIV business and Read more about Gilead, Buy HIV, Get Hepatitis C for Free[…]

The Persistent Problems of Presidential Elections

The election is over. I am left with two very contradictory feelings. First is one of appreciation — every four years we peacefully replace our government. I remember my parents in the late 1970s discussing Soviet politics at our house with their close friend. Their friend said something anti-Soviet. I vividly recall the fear in Read more about The Persistent Problems of Presidential Elections[…]