Morningstar Interview with David Winters - Wintergreen's Global Hunt for Bargains

David WintersMorningstar Justin Fuller interviewed with David Winters, CEO of Wintergreen Advisers, on Aug. 9, 2007. Winters discusses picks from his go-anywhere strategy.

Here is video link or you can watch directly below.

*You can also read David Winter's Wintergreen 2007 Semi-Annual Report (PDF).

Whitney Tilson on WealthTrack

Whitney TilsonWealthTrack talk to two value investors - Hersh Cohen, Fund Manager of Legg Mason Partners Appreciation and Whitney Tilson, Managing Partner of Tilson Mutual Funds - about what stocks they think can do well over the long term.

Here is video link and transcript. (Only available for 2 weeks)
Or you can download the video here (Right Click and Save as..).

Mauboussin on Strategy: Was Harry Potter Inevitable ?

Michael MauboussinMichael Mauboussin talks about Cumulative Advantage, Counterfactuals, and the Halo Effect in his latest report released on Sep. 7, 2007.

Here is the summary :

  • Predictions are difficult in culturally biased realms. Through a novel experiment, researchers showed an average song can become a hit or a clunker based on the principle of cumulative advantage.
  • Investors must show considerable caution in counterfactual thinking, an exploration of what could have been. Such thinking can lead to suboptimal behavior.
  • Management tomes are filled with advice derived from reverse-engineering the success of leading companies without awareness of how specious the claims can be.
Direct Article Link - Was Harry Potter Inevitable ? (PDF)


CNBC Interview with Marty Whitman - $30B Worth of Advice

Martin WhitmanCNBC had an interview with Marty Whitman, founder of Third Avenue Management, on Sept. 7, 2007. Whitman shares his investment strategy with CNBC's Sue Herera.

Here is Marty's points:

  • Bottom-up, fundamental analysis.
  • Buy & hold for the long term.
  • The macro-market environment has never influenced the process by which we select investments.
  • Stock market downswings and difficulties in rolling over paper will not impact safe and cheap investors - especially those who invest in companies that finance themselves.
  • Over-leveraged investors, and those who have not been setting aside cash, will not be able to participate in the value opportunities that the correction is creating.
  • In the midst of this credit crisis, the current situation seems to present an attractive buying opportunity.
  • We focus on investment risk, not market risk.
Direct video link- $30B Worth of Advice.

*You can also read Third Avenue's latest report - Third Avenue 2007 Q3 Letter to Shareholders.

NPR Interview with Michael Mauboussin - The Psychology of Stocks

Michael MauboussinNPR had an interview with Michael Mauboussin, chief investment strategist of Legg Mason Capital Management, on August 17, 2007.

It has been a bumpy ride on Wall Street this week. Could psychological theories help explain what is happening on the trading floor? Investment strategist Michael Mauboussin, author of More Than You Know: Finding Financial Wisdom in Unconventional Places, discusses the science of stocks.

Here is audio link or you can listen directly below. (About 18 minutes)


Biweekly Reading List (8/26-9/08)

I recap some good articles I read in the past two weeks :


John Rogers : Subprime Risks - Overblown

John RogersJohn W. Rogers Jr., chairman and CEO of Ariel Capital Management, writes a piece on Forbes.

  • During tough times like these I stay focused on the areas I know best, which keeps me calm and confident in my decisions.
  • This way I can concentrate on what matters most: underlying business fundamentals. And I don't waste time worrying about things I can't control or predict, like what sectors will be in vogue next or where interest rates are going.
  • When times get tough, fear leads people to overdiversify their investments in hopes of minimizing losses. Bad idea.
  • There are a number of sectors I don't buy because they are outside my circle. Maybe some people can consistently predict commodity prices. I can't, so I don't try. Similarly, you won't see me investing in the latest and greatest technology. The rapid obsolescence scares me.
  • On the other hand, financial stocks are one of the biggest weightings in my portfolios.
Direct Link - Subprime Risks: Overblown.

*Related Links :

Bloomberg Interview with Mark Mobius

Bloomberg had an interview with Mark Mobius, managing director of Templeton Asset Management, on Aug. 28, 2007. Mobius talked about the global economy, U.S. subprime mortgage slump, China, Singapore, Egypt and Dubai market etc.

  • We're pretty bullish. Markets are probably going to surge ahead to new highs barring any other unforeseen circumstances.
  • The Fed has been doing the right thing. The U.S. economy will continue to power along as a result.
  • I can't think of any market where we've been paring down because money continues to flow into the funds.
Here is direct link - Mobius Buys Stocks, Says Global Economy Is 'Healthy'.
Or you can watch directly below. (About 18 minutes)

*Related link - Mobius slams US regulators.

Ron Muhlenkamp's Recent Commentary

Ron Muhlenkamp released his commentary on Aug. 17, 2007.

  • We were in a transition period: The Federal Reserve’s interest rate actions would bring about a “soft landing” in the economy as opposed to a recession.
  • Sometimes you need to buy them, then, ignore what’s taking place in the market on a day-to-day basis.
  • Finding good companies isn’t all that difficult to do. The frustration is when you buy a good company at a cheap price and, in the days and months following, it gets cheaper still.
  • What the media and the markets are calling a “liquidity crisis” is, using my analogy, just a matter of folks who last week were willing to bid on a house and, this week, have decided to wait a week or two to see what happens.
  • Leverage works both ways. When things are good, leverage can make them great. When things are bad, leverage can force strange behaviors.
  • Right now, there are good companies selling cheap because some investors don’t know how to price them. Therefore, this is a great opportunity but it does take its toll on the stomach. Often In the past, a good stomach during such periods has been rewarded.
Direct Link - The Current Market and What We’re Doing about It (PDF).