I have long believed the corporate world is plagued by poor capital allocation decisions.
Most chief executives rise to that position by being good operating managers. Few have extensive experience or training with capital allocation. What CEO wants to return excess cash to shareholders when it could be used to expand his or her empire?
I think that most people who complain about our government have no idea what they're talking about because they've never been to a country with a bad government.
One can't be a successful investor without a healthy dose of confidence. To commit your own and others' hard-earned capital requires conviction, and conviction requires confidence. But as with fine brandy or coffee ice cream, too much of a good thing can be problematic.
When it comes to owning stocks of the best-known businesses in the world, value investors usually feel like children looking through the window of the candy store, unable to afford the treats inside because they refuse to pay the prices such high-quality franchises typically bear.
The deal machinations many companies put themselves through, while certainly a bonanza for investment bankers, can confound the typical investor.
If you look at the history of technology gadget makers, hardware makers, it's littered with the corpses of Palm and RIM and companies like that.
Nirvana, to a value investor, is paying a cheap price for a company that is growing in value every year at a nice rate - this largely explains why today we own stocks like Berkshire Hathaway, McDonald's, Wal-Mart, Microsoft, Costco and Anheuser-Busch.
Pence is far too conservative for me, but by all accounts, he's an intelligent, experienced, decent man with no skeletons in his closet.
As in most subjects relating to money management, there's a wide diversity of opinion on portfolio concentration versus diversification.
The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for dollar bills that you can buy for 50 cents or at some big discount - that is universal to value investing.
I love and celebrate good teachers, and it's critical that we do more to identify them and keep them happy and motivated.
When high-growth companies slow down, growth and momentum junkies often sell indiscriminately, which can create great opportunities for value investors. Just be careful not to anchor on the stock's previous price or earnings multiple, which are no longer relevant.
The key thing when you short is to make sure you're not wrong on the fundamental intrinsic value.
I believe our schools will actually get better if layoffs are done carefully, such that only the very worst teachers are let go.
There is a natural tendency for investors to devote a significant majority of their time to finding new ideas. After all, uncovering great companies selling at great prices is the lifeblood of successful investing. But in the never-ending quest for the next great idea, investors often give short shrift to their existing investments.
While there's always plenty of room for improvement, our government is actually quite effective and efficient. Our military and judicial systems and national parks are the best in the world. Unlike in countries where government corruption is rampant, I've never once been solicited for a bribe.
While I take no pleasure in others' misfortunes, we've historically made most of our profits from other investors behaving in a panicked and irrational fashion and selling us certain stocks at prices far below their intrinsic value. More volatility equals cheaper stocks, which equals higher returns.
Mueller is the leading North American provider of water infrastructure and flow control products - things such as fire hydrants, valves, pipes, fittings, and couplings. While this is no doubt a mundane business, it is also an excellent one.
There's a real company in Facebook and then a lot of pretenders riding their coat tails.
