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Is Japan a Value Trap?
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Is Japan a Value Trap?

Good article on Japanese equities, with a focus on Shimachu (8184:JP) from  Value Institute Many value investors are debating the merits and drawbacks of investing in Japan. On the positive side, Japanese stock valuations are a fraction of their Asian / Western […]

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Seth Klarman Shareholder Letter 2010

I found some great excerpt from Seth Klarman’s 2010 Annual Letter (H/T to http://myinvestingnotebook.blogspot.com for the find) . Whenever, you can find ANYTHING by Seth Klarman it is worth reading. This is not always easy, because despite having one of the […]

How Much Cash is Too Much?
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How Much Cash is Too Much?

Professor Aswath Damodaran from NYU’s Stern School of Business tackled the popular notion that companies are holding too much cash. These arguments have been increasing in the media in the wake of the massive cost cutting done throughout the Great Recession which, now that revenues are growing again, is resulting in ever-increasing cash balances (in the aggregate) on corporate balance sheets.

Damodaran argues that it is improper to say that companies like Apple, by having massive cash balances earning less than the company’s cost of capital, are “leaving money on the table”. The proper discount rate is not the company’s cost of capital, but instead the discount rate associated with that “project”, namely the interest rate on the cash, which makes cash a neutral investment, by . . .

→ Read More: How Much Cash is Too Much?

On The Critical Task of Risk Management
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On The Critical Task of Risk Management

By Greg of http://gregspeicher.com/ We live in a very uncertain world. The unfolding of events in the Arab world was unforeseen. Moreover, their future course of events is difficult, if not impossible, to predict. Add to this the uncertainty that surrounds […]