Buffett’s Partnership Letters
A reader alerted me that this blog has no link to Buffett’s original partnership letters. For shame, here they are:
Links to each original letter: http://www.rbcpa.com/WEB_letters/WEB_Letters_pre_berkshireTURNEDOFF.html
Newly typed Consolidated Letters for easier reading (suggested for ease of study)Complete_Buffett_partnership_letters-1957-70_in Sections
Li Lu’s Four Basic Principles of Value Investing
Li Lu is undoubtedly one of the most under-appreciated investors. The founder and Chairman of Himalaya Capital Management established his firm in 1997 based on the principles laid out by Benjamin Graham. Lu is a close friend of Charlie Munger and was once thought to be in-line to succeed Warren Buffett as the chief investment Read More
Readings and Videos in Economics
Video on Boone Pickens discussing Natural Gas: http://martinkronicle.com/2012/05/02/boone-pickens-pickens-plan-natural/
Developing skills and understanding your own foibles–Trader and Stock Blogs http://www.brettsteenbarger.com/trader_development.htm Search for topics of interest. Often trading blogs focus on the psychological aspects of trading since traders make many more discrete decisions than long-term investors, thus trading blogs can be of use to understanding how we make decisions under pressure and uncertainty.
Recent CNBC Munger Interview http://video.cnbc.com/gallery/?video=3000088395
Podcast on Steve Case’s book, The Indomitable Investor. Why people on main street do not understand how Wall Street works. His main point, “Bad investors think of ways to make money and good investors think of ways not to lose money.” http://martinkronicle.com/2012/04/02/steve-sears-indomitable-investor/
www.greenbackd.com is back posting with great articles on Greenblatt’s Magic Formula and more.
Fascinating 5 minute Video on Stock Market Volatility:
Artemis Capital Management LLC is pleased to present “Volatility at World’s End: Two Decades of Movement in Markets” a unique visualization of implied and realized stock market volatility from 1990 to 2011. The video was originally shown as part of Christopher Cole’s speech at the 2012 Global Derivatives and Risk Management Conference in Barcelona Spain on April 17th.
The movement of stock prices has been an obsession for generations of speculators and traders. On a higher level mathematicians believe that modern markets are an extension of the same fractal beauty found in nature. Visualized these stock markets may take the shape of a turbulent ocean with waves made of human hopes, dreams, greed, and fear. Merging the world of high-finance and high-art Artemis Capital Management LLC is proud to present a creative visualization of stock market volatility over the last two decades.
Volatility at World’s End: Two Decades of Movement in Markets is a depiction of real stock market volatility using trading data from 1990 to 2011. The visuals are designed from S&P 500 (INDEXSP:.INX) index option data replicating the implied volatility wave (or variance swap curve) extending to an expiration of one year. The front of the volatility wave contains the same data used to calculate the CBOE VIX index. The movement of this wave demonstrates changing trader expectations of the future stock market volatility. As the wave moves through time the expected (or implied) volatility surface transforms into a realized volatility surface derived from historical S&P 500 index movement. The transition represents what professional traders call “volatility arbitrage”. The color variation in the volatility waves show the volatility-of-volatility or internal movement of the wave. The track underneath the volatility wave represents underlying S&P 500 index prices.
Volatility at World’s End: Two Decades of Movement in Markets VIDEO (5 minutes) http://www.artemiscm.com/research/volitility-at-worlds-end-two-decades-of-movement-in-markets/