"Value investing is easy it is sick. Everyday, I read to expand my circle of competence. That's all."
"When I read , I know. When I study, I remember. When I do, I understand. When I went to Buffett's meetings, I self-actualized."
"My risk management control is to reject investment ideas."
-- Mike Onghai
Thinking about an investing decision is like trying to solve a difficult physics problem. You constantly think and might sleep on it. And then all of a sudden, you know the answer. That's what it is when you decide to get in bed with a stock.
posted by Mike Onghai, CFA @ 8:22 AM
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My investing philosophy is an amalgamation of my five great inspirations and direct teachers: Graham&Dodd, Buffett and Munger's Latticework of Mental Models, Phil Fisher, and of course, my two direct teachers, Marty Whitman, and Joel Greenblatt. Numerous studies (See Fama-French, Lakonishok, Piotroski) have been made confirming that a value strategy beats a growth strategy in U.S. and international markets. I look for investment ideas that fall into 4 baskets: excellent businesses( high returns on capital, that can deploy retained earnings and yield higher than the cost of capital) at fair prices, stocks selling for below liquidation values (the cigar butts), stocks selling for below net ascertainable values (Marty Whitman), and special situations (Joel Greenblatt -- spinoffs, post-bankruptcies, and liquidations). I have a degree in Computer Science and Engineering and I am a member of the ValueInvestorsClub.com . I help run a fund using these principles here in the U.S. Beginning in 2006, I will also run a fund with a satellite office in Asia. The focus will be investing in companies that will enjoy benefits of the growth opportunities in Asia.
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