tag:blogger.com,1999:blog-7294165939647321702.post7138359539857957630..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Buffett vs Value InvestingSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7294165939647321702.post-70134592874154105832009-11-14T11:58:29.797-05:002009-11-14T11:58:29.797-05:00I have been wondering about this acquisition mysel...I have been wondering about this acquisition myself for a couple of days, trying to understand it. It's easy to forget that the man is the greatest investor of our time (and possibly of all time) when news outlet label this latest acquisition as a GAMBLE!<br /><br />This reminds me of this video I saw a couple months ago, title Gates & Buffett Go Back To School. It explains a lot of things about how Warren Buffett operates as a businessman.Investing 101http://investing-101.netnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-48463735349883080412009-11-08T21:38:02.926-05:002009-11-08T21:38:02.926-05:00I disagree with your assertion Korey that large ca...I disagree with your assertion Korey that large cap stocks provide a buffer against downside risk. The only true buffer against downside risk is proper stock analysis and purchasing an equity at a discount to it's intrinsic value. Size has nothing to do with risk mitigation.<br /><br />Also if you read biography's written about Buffett or some of the early partnership letters you will see that in many cases when he had a smaller pool of money he was very much focused on small cap stocks that were very illiquid. In some extreme cases he was even searching out individual stock owners so that he could personally purchase their certificates from them a few lots at a time.Mikenoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-22799796024954633832009-11-07T14:53:23.871-05:002009-11-07T14:53:23.871-05:00"Individuals are thus better off finding valu..."Individuals are thus better off finding value in the analyst-ignored small cap universe where stock prices are the most inefficient and where companies trading at large discounts can be found."<br /><br />You overstate the case for small-cap stocks for individuals. Mid-cap and large-cap stocks provide significant buffers against downside risk, whether by events within or outside the control of management.<br /><br />And, as Buffet has shown, there is lots of value to be had in the mid-cap and large-cap realm. So the appropriate investment universe for an individual is not as clear cut as this fine blog would lead one to believe.<br /><br />Put another way: Buffet is currently restricted to large cap stocks, but that does *not* necessarily mean that if he had a small pool of money to invest and no such restrictions he would focus exclusively on small caps, which, almost by definition, lack some of the most important qualities that he seeks.Koreynoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-75758676331145828942009-11-06T01:21:29.741-05:002009-11-06T01:21:29.741-05:00Dear webmaster,
I am the webmaster of some finance...Dear webmaster,<br />I am the webmaster of some finance sites having good web presence.<br />I want to make 1 guest post in your blog on any finance related topic which yopu can chose for me., if you give me permission. The post will contain 300 words above and will be totally unique in nature.<br />Please contact me at diana.perkins1983(at)gmail(dot)com .Diana Perkinshttps://www.blogger.com/profile/08199197431376781087noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-20422049186561291412009-11-05T14:43:07.261-05:002009-11-05T14:43:07.261-05:00"The advantage Buffett has over everybody els..."The advantage Buffett has over everybody else, however, is his superior ability to understand competitive advantages (or "moats"): he believes/knows that the ROE depicted above will continue for the foreseeable future."<br /><br />Without trying to sound crass of course ROE will continue at it's current level he is buying a railroad (high fixed cost business and a monopoly) it's not like someone is going build a competeing railroad in the same area there will only ever be one and it will always be cheaper than trucking or shipping by air. It seems kind of like a no brainer in my opinion. The icing on the cake is really the price of oil. If it goes up then it just makes his investment more worthwhile.mikenoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-78515313970981545352009-11-05T13:11:26.158-05:002009-11-05T13:11:26.158-05:00Very nice post Saj. Many so called Buffett followe...Very nice post Saj. Many so called Buffett followers, don't realize this fact.segemranhttps://www.blogger.com/profile/13800201527718413497noreply@blogger.com