Warren lays out a list of withdrawal procedures for the partnerships...He talks about how important it is to think long term when it comes to investing and he should be measured over a five year period and should be compared to the DOW...Warren will not predict what the market is going to do...He will base his stock picks on valuation and not how popular they are...
He now has his net worth invested in the partnerships...He will use the Ben Graham margin of safety rule when investing...The DOW opened at 731 and closed at 652...A loss of 10.8%...The total partnerships were up over 12% and for five years they have averaged about 23%...The top four investment companies all had negative returns averaging about a minus ten percent..Of the top four, Massachusetts Investors Trust returned the best, and it was -9.8%...
Warren talks about the impacts compounding has over the very long term and how money can grow especially over thirty years, especially when the compounding rates are high...Warren reiterates the classifications of 1. Generals, 2. Work-outs, 3. Controls...Generals are tied to the DOW's return and will drop the most of the three groups, when the DOW drops...Work-outs will have a more specific time period when the value will be realized...Different corporate events such as a company selling itself, a merger or a spin off can lead to work-outs...Warren is looking for a stock price difference after a company announcement where the price is not valued properly...In controls, a large shareholder will try to influence the company's policies...Control situations take place over time as positions are increased and a board seat or seats take place... As we assume a larger shareholder position, we will discuss with the board and executive management to improving management or a shift in corporate policy, if necessary...The partnership's present control position is Dempster Mill which was discussed in 1961...The partner's own 73% of the company...Warren shows us for the first time a valuation of a simplified balance sheet of Dempster...He values accounts receivable at 85% of its value, inventory at 60% of its value, and prepaid assets at 25% of their value...Finally a look at intrinsic valuing a company...Harry Bottle a friend of Warren's, looks at valuing Dempster...And Warren plans to continue to use Harry's expertise...Warren talks about being an independent thinker and you are not right just because the herd is following you or you are popular...You are right when you have the facts right...When he buys a company, he wants to buy it at the right price and not depend on having to get out of the purchase with an increase in the stock price...Annual increase in sales makes the margin of safety even better...
Bill Scott, an employee is invested in the partnership...And the partnership is now over $9 million...
What have we learned:
Warren continues to outperform the DOW...
Warren continues to follow Ben Graham's margin of safety concept...
Compounding is very effective over the long term...
Warren continues to own Dempster...
Warren shows the valuation of Dempster, using a percent on each asset...
Purchasing stocks at the right price with increasing sales is the way to purchase stocks and give you a margin of safety...
You are right in an investment because you have the facts right...
Being conservative is tied with how many facts you have and if your facts are correct about a purchase...
The partnership continues to grow...
He now has his net worth invested in the partnerships...He will use the Ben Graham margin of safety rule when investing...The DOW opened at 731 and closed at 652...A loss of 10.8%...The total partnerships were up over 12% and for five years they have averaged about 23%...The top four investment companies all had negative returns averaging about a minus ten percent..Of the top four, Massachusetts Investors Trust returned the best, and it was -9.8%...
Warren talks about the impacts compounding has over the very long term and how money can grow especially over thirty years, especially when the compounding rates are high...Warren reiterates the classifications of 1. Generals, 2. Work-outs, 3. Controls...Generals are tied to the DOW's return and will drop the most of the three groups, when the DOW drops...Work-outs will have a more specific time period when the value will be realized...Different corporate events such as a company selling itself, a merger or a spin off can lead to work-outs...Warren is looking for a stock price difference after a company announcement where the price is not valued properly...In controls, a large shareholder will try to influence the company's policies...Control situations take place over time as positions are increased and a board seat or seats take place... As we assume a larger shareholder position, we will discuss with the board and executive management to improving management or a shift in corporate policy, if necessary...The partnership's present control position is Dempster Mill which was discussed in 1961...The partner's own 73% of the company...Warren shows us for the first time a valuation of a simplified balance sheet of Dempster...He values accounts receivable at 85% of its value, inventory at 60% of its value, and prepaid assets at 25% of their value...Finally a look at intrinsic valuing a company...Harry Bottle a friend of Warren's, looks at valuing Dempster...And Warren plans to continue to use Harry's expertise...Warren talks about being an independent thinker and you are not right just because the herd is following you or you are popular...You are right when you have the facts right...When he buys a company, he wants to buy it at the right price and not depend on having to get out of the purchase with an increase in the stock price...Annual increase in sales makes the margin of safety even better...
Bill Scott, an employee is invested in the partnership...And the partnership is now over $9 million...
What have we learned:
Warren continues to outperform the DOW...
Warren continues to follow Ben Graham's margin of safety concept...
Compounding is very effective over the long term...
Warren continues to own Dempster...
Warren shows the valuation of Dempster, using a percent on each asset...
Purchasing stocks at the right price with increasing sales is the way to purchase stocks and give you a margin of safety...
You are right in an investment because you have the facts right...
Being conservative is tied with how many facts you have and if your facts are correct about a purchase...
The partnership continues to grow...
No comments:
Post a Comment