Portfolio Concentration – Sleep With One Eye Open

portfolio concentrationhttp://www.valueinstitute.org

Value investing can appear to be quite easy: thoroughly analyse a business and its risks and then ensure the price paid offers an adequate margin of safety. Many advocates postulate that because the analysis has been thorough and a margin of safety has been incorporated, intelligent investors can then concentrate their capital in their best ideas (“Why invest in your sixteenth best idea?”). However we highlight reasons why even seemingly-diligent analysts can make poor investment decisions that could prove catastrophic in a concentrated portfolio.

Click below to see the full dcoument in PDF:

Dan Loeb’s Third Point Re To Merge After Years Of Losses

Nestle Dan Loeb Daniel Loeb third point capital hedge fund manager activist investor poison pen activism Yahoo corporate governance famous investorsLast week, Third Point Re insurance, which is backed by US hedge-fund manager Daniel Loeb, said it would merge with Sirius International Insurance Group in a cash-and-stock deal worth around $788 million. The deal comes at a pivotal time for both companies. Third Point Re To Merge After Years Of Losses Early last year, reports Read More


Portfolio Concentration – Sleep With One Eye Open