A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how … Continue reading Mental Model: Evolutionary psychology
Author: Gísli Eyland
There are just too many interesting things going on
Mental Model: Behavioral Economics
A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how … Continue reading Mental Model: Behavioral Economics
Mental Model: Economics
A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how … Continue reading Mental Model: Economics
Profile: Charles Munger
http://youtu.be/pqzcCfUglws I probably don’t enjoy anything as much as reading Charles Munger, but this is my absolute favorite piece of Munger-material (link to the whole speech): "The model I like—to sort of simplify the notion of what goes on in a market for common stocks—is the pari-mutuel system at the racetrack. If you stop to … Continue reading Profile: Charles Munger
Nugget: Third Avenue takes on a position in Madison Square Garden common
To my surprise, Curtis R. Jensen, Chief Investment Officer of the Third Avenue Small-Cap Value Fund, revealed in his letter to shareholders from April 30th. 2011, that the fund had added Madison Square Garden common shares to its portfolio. Third Avenue operates value oriented mutual funds, based on the principles of Ben Graham. Its founder, … Continue reading Nugget: Third Avenue takes on a position in Madison Square Garden common
Nugget: Adams Golf
Adams Golf (ADGF) has been showing up on value sceens for some time now, athough the stock has appreciated a great deal in the last year or so (when it was popping up on net-net screens). Barney Adams is the founder of Adams Golf and credited with the innovation of the hybrid golf club. Although … Continue reading Nugget: Adams Golf
Nugget: Why Shareowner Value?
Prem Watsa is one of those who has praised the quality of Roberto C. Goizueta´s article of the importance of shareholder value creation as a central mission for corporations. "We have one job: to generate a fair return for our owners, who have entrusted their assets to us. Without focusing on that job, we fail. … Continue reading Nugget: Why Shareowner Value?
Nugget: Biglari on taxes
An exerpt from the 2010 Annual Report of Biglari Holdings (link): "In the long run, all gains — realized and unrealized — are essential to the value of the company. But the timing of realizing gains or losses does not impact business value. Therefore, we do not realize gains or avoid realizing losses in order … Continue reading Nugget: Biglari on taxes
Profile: Henry Singleton
"By the way, you may not know, but the Michael Jordan of stock buybacks was Henry Singleton at Teledyne. Henry began Teledyne in 1961 with approximately seven million shares outstanding and grew the company through acquisitions while shares outstanding peaked in 1972 at 88 million. From 1972 to 1987, long before stock buybacks became popular, … Continue reading Profile: Henry Singleton
Valuation in Fundamental Finance
Valuation is the discipline of estimating the value of financial securities, such as stocks an bonds, by fundamental analysis of financial statements. The Valuation Process "Graham & Dodd and Modern Financial Analysis" by Joseph Calandro, Jr. PwC & the University of Connecticut. December 13, 2011. The Equity Premium According to Wikipedia: "In the … Continue reading Valuation in Fundamental Finance