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Book Review: The value investors: Lessons from the world’s top fund manager (Part 1)
By Investmentabc  •  February 13, 2014

The value investors: Lessons from the world’s top fund manager (Part 1)

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Author: Ronald W. Chan

Walter Schloss (Walter & Edwin Schloss Associates)

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“I learned that if I can simply survive in the market, just like surviving in the war, and not lose money, eventually I will make something”

“The best way to invest is to lay out rules which, if followed, would reduce the chance of loss”

“Nothing terrible happening to you is a profit”

“Understand ones strengths and weakness… When you have made a sound decision, make sure you have the courage to stick to it”

Strategy:

-         Finding net-nets

(CA – Liabilities) / total share outstanding

-         Stocks selling below their book value

-         Buy assets instead of earning since assets don’t change quickly unlike earnings

-         Diversify (50 – 100 stocks)

-         Doesn’t worry about macro factors, or the underlying business, but whether the stock is undervalued

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By Investmentabc
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