February | 2011 | wealthymatters

Who Is Whitney Tilson ?

February 22, 2011 2 Comments

Whitney Tilson is a Harvard MBA ,a disciple of the Graham-Dodd -Buffett-Munger school of value investing , an author and a respected value investor.He has also spoken widely on behavioural finance.

He is one of the authors of Poor Charlie’s Almanack.(Click here for more about Poor Charlie’s Almanack https://wealthymatters.com/2011/02/12/poor-charlies-almanack/). He has also authored The Value Investing Course: Essential Strategies for Market-Beating Returns , where he takes the lifelong process of learning how to identify profitable investment opportunities and streamlines these lessons into strategies that will help the reader build a successful investment portfolio’.He also writes a regular column on value investing for the Financial Times and Kiplinger’s and has written for the Motley Fool and TheStreet.com.You can read some of his articles here: http://www.tilsonfunds.com/

Whitney Tilson co-manages T2 Partners LLC with Glenn H. Tongue; this comprises three value-oriented private investment partnerships viz. T2 Accredited Fund, LP ; Tilson Offshore Fund, Ltd ; T2 Qualified Fund, LP and the Tilson Mutual Funds, composed of two value-based mutual funds, Tilson Focus Fund and Tilson Dividend Fund.Whitney Tilson also led the effort to create ICV Partners, a for-profit private equity fund focused on minority-owned and inner-city businesses that has raised nearly $500 million. Read more of this post

Filed under Tidbits Tagged with Financial Times, Glenn H Tongue, Harvard MBA, IVC Partners, Kiplinger, Motley Fool, Poor Charlie's Almanack, postaday2011, Private Equity, Private Investment Partnerships, T2 Accredited Fund LP, T2 Partners LLC, T2 Qualified Fund LP, The Value Investing Course Essential Strategies For Market Beating Returns, TheStreet.com, Tilson Dividend Fund, Tilson Focus Fund, tilson funds, Tilson Mutual Funds, Tilson Offshore Fund Ltd, value investor, Whitney Tilson

Here Onwards I’m Posting Every Day in 2011!

February 22, 2011 Leave a comment

I want to stick to my target of posting at least one article a day.I would like to give myself as little wriggle-room as possible to make excuses.

I’ve been thinking of joining the PostADay2011 Challenge for a while.Tonight , finally, I’ve signed up.I will be posting on this blog once a day for all of 2011. The only excuses I will allow myself are extreme ill-health , family emergencies or the deal of a life-time sort of business deal.

I’m promising to make use of The DailyPost, and the community of other bloggers with similar goals, to help me along the way, including asking for help when I need it and encouraging others when I can.

If you already read my blog, I hope you’ll encourage me with comments and likes, and good will along the way.

Signed,

Keerthika Singaravel

Filed under Tidbits Tagged with PostADay2011 Challenge

Dealing With The Shortcomings Of The Human Brain

February 21, 2011 2 Comments

Since we can’t overcome the tendency of the human brain to make mistakes while working through heuristics , here is a list of things we can do to reduce the effects of the shortcomings of the human brain.The more we can incorporate these points into our investing procedures and systems , the better the quality of our returns.The checklist is form Whitney Tilson’s ‘How to Avoid – and Profit From – Manias , Bubbles and Investor Irrationality’.

•Be humble–Avoid leverage, diversify, minimize trading

•Be patient

–Don’t try to get rich quick

–A watched stock never rises

–Tune out the noise

–Make sure time is on your side (stocks instead of options; no leverage)

•Get a partner

–someone you really trust –even if not at your firm Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with bearish, behavioural finance, circle of competence, contrary opinions, diversify, get rich quick, good business, heuristics, How To Avoid and Profit From Manias Bubbles and Investor Irrationality, leverage, randomness, regression to mean, Stock Share Investing, stocks, Whitney Tilson

Psychology And Bad Market Timing.

February 21, 2011 2 Comments

Every stock investor whether a technical or fundamental or value investor ultimately needs to take a call on whether he/she wishes to buy or sell at the price Mr. Market sets at any given time.How much an investment ultimately nets a person depends on the timing of the buy and sell decision and the actual price at which the transaction takes place,despite all the theories of averaging out and time in the market and reversion to the mean.

The following is a checklist of mental mistakes that may affect a person’s decision to buy or sell and cost a him/her dearly. The checklist is from Whitney Tilson’s presentation ‘How to Avoid – and Profit From – Manias,Bubbles and Investor Irrationality”

•Failing to Buy

–Status quo bias

–Regret aversion

–Choice paralysis

–Information overload

–Hope that stock will go down further (extrapolating recent past into the future; greed) or return to previous cheaper price (anchoring)

–Regret at not buying earlier (if stock has risen)

•Office Depot at $8 (vs. $6) Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with anchoring, behavioural finance, Choice Paralysis, endowment effect, Failing to Buy, Failing to Sell, fundamental investor, greed, How To Avoid and Profit From Manias Bubbles and Investor Irrationality, Information Overload, Paper Asset, psychology, Regret Aversion, share, Status quo bias, stock, stock investor, technical investor, value investor, Whitney Tilson

A Critique of the Giving Pledge

February 21, 2011 5 Comments

Wealthymatters.com

Following is a very nice critique of the Giving Pledge and the Buffett-Gates style of philanthropy.I found it a couple of days ago at http://heybrowncow.wordpress.com/2010/10/07/are-gates-and-buffet-teaching-the-world-how-to-live-the-american-way/ . It points out the good and the bad in the effort.The red text are points I find particularly interesting.How do you feel about the Giving Pledge? On what points do you agree/disagree with the author below?

Are Gates and Buffet teaching the world how to live (or give), the American way?

By Dingzi

AMERICAN billionaires and founders of The Giving Pledge Bill Gates and Warren Buffet may be heading next for the Nobel Peace Prize. Imagine what a heap of good the billions that have been pledged can do to make a better world.

Having persuaded 40 fellow American super-rich to pledge at least 50 per cent of their wealth to charity by the time they die – the collective pledge has reached US$1.25 billion – the two philanthropists are taking the campaign international. Read more of this post