Walter Schloss was a legendary value investor who started on Wall Street as a runner, when he was 18 years old. Lots of reading there and useful stuff for those interested in value investing. Thanks to Elevation Capital.
h/t Value Investing
« I am a biography nut [myself]. And I think when you’re trying to teach the great concepts that work, it helps to tie them into the lives and personalities of the people who developed them. I think you learn economies better if you make Adam Smith your friend. That sounds funny, making friends among ‘the eminent dead,’ but if you go through life making friends with the eminent dead who had the right ideas, I think it will work better for you in life and work better in education. It’s way better than just giving the basic concepts. »
Sauce: Poor Charlie’s Almanack, Expanded Third Edition, 2005
This is a classic read although rather unusual. I had the chance to attend a presentation by James Montier (now at GMO) at a Morningstar conference in Amsterdam a couple of years ago. In his intro, Daniel Needham unearthed his note on happiness. Although it probably has little to do with value investing, it is interesting to see that as an equity strategist at DkW, Montier had the liberty to write on such an important topic in life…
Recent market sell-off has given a bit more breathing room to European equity markets. On average, the 12 month forward P/E for the Stoxx Europe 600 index currently stands at 14.4x, which looks reasonable when you consider that the market expects 10.1% EPS growth this year + 3.6% Dividend Yield.
But but but…
« The S&P 500 has entered the longest period since 1929 without a correction of more than 5%. » While this might entail a sigh of admiration to many investors, this kind of observation (per Goldman Sach’s report published today by their equity strategy team, entitled « Correction Detection; the risks of a drawdown within a bull market ») is a source of worry to us.