Who Is Whitney Tilson ?


wealthymatters.com 

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

An Investing Principles Checklist


wealthymatters.com

This is an investing principles checklist from ‘Poor Charlie’s Almanack’.I think it bears reading at frequent intervals just to ensure we aren’t doing something incredibly stupid or failing to do something basic that could better our investment records.

Risk – All investment evaluations should begin by measuring risk, especially reputational
  • Incorporate an appropriate margin of safety
  • Avoid dealing with people of questionable character
  • Insist upon proper compensation for risk assumed
  • Always beware of inflation and interest rate exposures
  • Avoid big mistakes; shun permanent capital loss

Independence – “Only in fairy tales are emperors told they are naked”

  • Objectivity and rationality require independence of thought
  • Remember that just because other people agree or disagree with you doesn’t make you right or wrong – the only thing that matters is the correctness of your analysis and judgment
  • Mimicking the herd invites regression to the mean (merely average performance)

Preparation – “The only way to win is to work, work, work, work, and hope to have a few insights”

  • Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day
  • More important than the will to win is the will to prepare
  • Develop fluency in mental models from the major academic disciplines
  • If you want to get smart, the question you have to keep asking is “why, why, why?” Read more of this post

Charlie Munger


wealthymatters.comFor all those who are like who the heck is this Charlie?And there are many who would ask the question where I come from. Charles Thomas (Charlie) Munger is an investment manager. He is Vice-Chairman of Berkshire Hathaway Corporation and Warren Buffett’s long term associate. Munger is also the chairman of Wesco Financial Corporation, based in Pasadena, California. Wesco Financial is an 80.1%-owned subsidiary of Berkshire Hathaway. It began as a savings and loan association, but now controls Precision Steel Corp., CORT Furniture Leasing, Kansas Bankers Surety Company, and other ventures. Wesco Financial has an equity portfolio of over $1.5 billion dollars that is concentrated in Coca-Cola, Wells Fargo, Procter & Gamble, Kraft Foods, US Bancorp, and Goldman Sachs.

Buffett has often publicly stated that he regards Charlie Munger as his partner.  In fact Charlie Munger owns enough Berkshire Hathaway stock to be a bona fide billionaire in his own right. There are many similarities between these two long time friends.However the lesser known Charlie Munger is not a carbon copy of Warren Buffett.There are distinct differences in the way in which the two long -time friends think .Ofcourse what is so fascinationg is how both these people’s thoughts mesh to create a better whole.Also Warren Buffett is known to devote his time almost exclusively to his business, while Charlie Munger, who does not involve himself in the day-to-day operations of Berkshire, is a generalist for whom investment is only one of a broad range of interests.

Charlie Munger is a great admirer of Benjamin Franklin.His thoughts are compiled in a 500 odd pages tomb called “Poor Charlie’s Almanack”.

Charlie Munger believes in thinking about things by inverting. So to understand how to be happy in life, Charlie will study how to make life miserable; to examine how businesses become big and strong, Charlie first studies how businesses decline and die; most people care more about how to succeed in the stock market, Charlie is most concerned about why most have failed in the stock market. Read more of this post

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