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Monday, 8 May 2017

Market Fluctuations as a Guide to Investment Decisions (2) - Timing or Pricing

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Stock Brokers and the Investment Services As a matter of business practice (or perhaps of thorough-going conviction), the stock brokers a...

Market Fluctuations as a Guide to Investment Decisions (1) - Timing or Pricing

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Common stocks, even of investment grade, are subject to recurrent and wide fluctuations in their prices. Should the intelligent investo...

A sound mental approach towards stock fluctuations (5): Market Declines and Unsuccessful Stock Investments

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Market declines and unsuccessful stock investments In the case of market declines and unsuccessful stock investments, there is a vital...

A sound mental approach towards stock fluctuations (4): Advancing, Bull or Rising Market

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Advancing or Rising Market The investor is  neither a smart investor nor a richer one  when he  buys in an advancing market  and the  m...

A sound mental approach towards stock fluctuations (3): Market Price Fluctuations

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Market Price Fluctuations When the general market  declines or advances substantially , nearly  all investors  will have somewhat  s...

A sound mental approach towards stock fluctuations (2) Measuring Investment Results

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Price Changes as Measuring Investment Results The success of your investment program in common stocks must  depend in great part   o...

A sound mental approach towards stock fluctuations (1)

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Intelligent investment is more a matter of  mental approach  than it is of technique. A  sound mental approach towards stock fluctuati...

Berkshire Hathaway: A Safe, High-Quality, Growing Company

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The Basics Stock price (5/4/17): $249,540 $166.34 for B shares Shares outstanding: 1.64 million Market cap: $409 billion Total ass...

Buffett: The stock market's casino-like characteristic can be agonizing for investors

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Iconic investor Warren Buffett says Berkshire Hathaway ( BRK.A ) ( BRK.B ) thinks that investors will do reasonably well when specu...
Sunday, 7 May 2017

Overview of the Different Classes of Arbitrage

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Classic Arbitrage Category 1.  Friendly Mergers This is where two companies have agreed to merge with each other. An example would be...

Tendering Your Shares

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The company doing the buying will make an announcement that it is asking shareholders to tender their shares between, say, June 1, 2010 and...

Arbitrage - where to look for these companies?

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Where to discover what companies are - planning on merging, attempting a hostile takeover  spinning off a business,  doing a liquidat...

Leverage and Arbitrage

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When is it safe to use leverage in your arbitrage? The certainty of the deal presents an opportunity to safely use leverage - borrowed...

The Arbitrage Risk Equation Warren Learned from Benjamin Graham

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An example of arbitrage. Announcement of the $55 a share tender offer Stock was trading at $44 a share before the announcement. After t...

Using Annual Rate of Return to Determine the Investment's Attractiveness

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The time it takes to achieve the projected profit ultimately determines a great deal of the investment's attractiveness. Therefore, ...

Two reasons why investors lose money in the stock market

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1.  They buy poor quality stocks. 2.  They pay too high  prices.  

Buying Cheaply Works

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When we talk about value investing there is a lot of evidence that value investors have been on the right side of the trade. The statistic...
Friday, 5 May 2017

The 7 classes of arbitrage and special situations that Warren Buffett has invested into.

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Warren Buffett has focused on seven classes of arbitrage and special situations. Classic Arbitrage  Friendly Mergers Hostile Takeovers...

Time Arbitrage

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Example to illustrate "time arbitrage": Company ABC's stock is trading at $8 a share. Company XYZ offers to buy company A...

The work of the arbitrageurs (Market arbitrage)

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A particular commodity, e.g., gold,  trades virtually at virtually the same price in different markets in the world. This is the work o...