Comments on: The Little Book of Value Investing http://www.moneysmartsblog.com/the-little-book-of-value-investing/ Investing and Personal Finance Sat, 11 Feb 2012 04:38:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Giant Book Giveaway! http://www.moneysmartsblog.com/the-little-book-of-value-investing/comment-page-1/#comment-7614 Giant Book Giveaway! Tue, 26 Aug 2008 04:43:39 +0000 http://www.moneysmartsblog.com/the-little-book-of-value-investing/#comment-7614 [...] The Little Book of Value Investing by Christopher Browne. This book is great for value and dividend investors – if you are feeling down about your portfolios then this book might be a good pick-me-up!  We posted a review here. [...]

]]> By: Four Pillars http://www.moneysmartsblog.com/the-little-book-of-value-investing/comment-page-1/#comment-5097 Four Pillars Thu, 10 Apr 2008 20:48:31 +0000 http://www.moneysmartsblog.com/the-little-book-of-value-investing/#comment-5097 I thought the book was ok. I found it was more of a refresher for value investing rather than a textbook for it. I thought the book was ok. I found it was more of a refresher for value investing rather than a textbook for it.

]]> By: Mr. Cheap http://www.moneysmartsblog.com/the-little-book-of-value-investing/comment-page-1/#comment-5094 Mr. Cheap Thu, 10 Apr 2008 17:09:01 +0000 http://www.moneysmartsblog.com/the-little-book-of-value-investing/#comment-5094 CC: Probably a good call. I liked the book, but I don't know all that much about value investing, probably it would have been way too introductory for you (you should get it for your twins in a few years! ;-). Siddharth: I'm with you that "loser" is a inappropriate term, I was just trying to say that I think its inappropriate for asset allocation too. In both situations you're identifying some thing that you think is undervalued, and buying more of it. You're right that this doesn't make it a loser. With value investing, you're using a formula to calculate the "intrinsic value" then buy companies that are selling cheaper than what they're "worth". With asset allocation, you're using the recent performance of you portfolio as a whole to identify the under-performing areas, then to increase your investment in them in the expectation that there will be a reversion to mean (i.e. the index is selling for cheaper than what they're "worth"). I just felt it was a bit of the pot calling the kettle black for a value investor to disparage asset allocation (or vice versa) CC: Probably a good call. I liked the book, but I don’t know all that much about value investing, probably it would have been way too introductory for you (you should get it for your twins in a few years! ;-) .

Siddharth: I’m with you that “loser” is a inappropriate term, I was just trying to say that I think its inappropriate for asset allocation too. In both situations you’re identifying some thing that you think is undervalued, and buying more of it. You’re right that this doesn’t make it a loser.

With value investing, you’re using a formula to calculate the “intrinsic value” then buy companies that are selling cheaper than what they’re “worth”.

With asset allocation, you’re using the recent performance of you portfolio as a whole to identify the under-performing areas, then to increase your investment in them in the expectation that there will be a reversion to mean (i.e. the index is selling for cheaper than what they’re “worth”).

I just felt it was a bit of the pot calling the kettle black for a value investor to disparage asset allocation (or vice versa)

]]> By: Siddharth http://www.moneysmartsblog.com/the-little-book-of-value-investing/comment-page-1/#comment-5092 Siddharth Thu, 10 Apr 2008 15:10:41 +0000 http://www.moneysmartsblog.com/the-little-book-of-value-investing/#comment-5092 Selling winners and buying loosers. I diagree with the comment that value investing also sells winners and buys loosers. This is not correct because the whole primise of buying stocks in value investing to buy mispriced assets (Stocks on Sale) and selling them when they are fully priced. This would mean that the market has fully understood the potential of this stock and will not increase in multiples further. Asset allocation though single handedly does not work in the same manner because in that scenario the inevstor will redistribute his assets across different sectors or countries only because he has become overweight in that area when that area is still under priced and has potential to move further. Selling winners and buying loosers.

I diagree with the comment that value investing also sells winners and buys loosers. This is not correct because the whole primise of buying stocks in value investing to buy mispriced assets (Stocks on Sale) and selling them when they are fully priced. This would mean that the market has fully understood the potential of this stock and will not increase in multiples further.

Asset allocation though single handedly does not work in the same manner because in that scenario the inevstor will redistribute his assets across different sectors or countries only because he has become overweight in that area when that area is still under priced and has potential to move further.

]]> By: Canadian Capitalist http://www.moneysmartsblog.com/the-little-book-of-value-investing/comment-page-1/#comment-5091 Canadian Capitalist Thu, 10 Apr 2008 14:04:27 +0000 http://www.moneysmartsblog.com/the-little-book-of-value-investing/#comment-5091 I borrowed this book out of the library to read a while back and couldn't get past the first chapter or so. I kept thinking that an aspiring value investor would learn as much if not more by simply reading Buffett's letters available on the Berkshire website. I borrowed this book out of the library to read a while back and couldn’t get past the first chapter or so. I kept thinking that an aspiring value investor would learn as much if not more by simply reading Buffett’s letters available on the Berkshire website.

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