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The Process

Searching for Yield? Better to Look for Humility and Patience

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The following is an excerpt from Investment Management Associates’ second-quarter letter to investors. The Great Recession may be over, but seven years later we can still see the deep scars and unhealed wounds it left on the global economy. . These bailouts and subsequent stimuli swelled global government debt, which jumped 75 percent, from $33…

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For Investors, Discovering Truth Takes Time

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The Roman philosopher, playwright, statesman and occasional satirist Lucius Annaeus Seneca wasn’t talking about the stock market when he wrote that “time discovers truth,” but he could have been. In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random. Here are two…

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How Investors Should Deal With The Overwhelming Problem Of Understanding The World Economy

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The article is very long. It is long for two reasons: first, it is was originally a two-part article that I folded into one; and second, I am dealing with the very complex topic of investing in today’s global economy. I wrote this article a year ago, and some themes like “be careful of MLPs” are…

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What The F… Should I Do Now? – Part 1

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“What the f… do I do now?” This was the actual subject line of an e-mail I received that really summed up most of the correspondence I got in response to an article I published last summer. To be fair, I painted a fairly negative macro picture of the world, throwing around a lot of fancy words, like “fragile” and “constrained system.”

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The True Value of Macro Forecasting for Value Investors

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While in Omaha for the Berkshire Hathaway annual meeting a couple of weeks ago, I participated in an investment panel hosted by a local chapter of the Young Presidents’ Organization. I had the privilege of sharing the stage with such industry giants as Tom Russo, a partner of Gardner Russo & Gardner (famous for knowing…

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Warren Buffett, Coca-Cola and the Not-So-American Dream

in The Process by
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Next Thursday, for the seventh time, I am going to Omaha, Nebraska, for the Berkshire Hathaway annual meeting. But this is the first time that I find myself respecting Mr. Buffett a little bit less than the year before. One of Berkshire Hathaway’s largest and oldest stock holdings, Coca-Cola Co., held a proxy vote yesterday,…

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Practitioners, Prognosticators and Portfolio Pain

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“Asphyxiation is a condition in which the body doesn’t receive enough oxygen.” That’s how I started my last column, in which I explained how the recent U.S. equity market highs have been creating “altitude sickness,” or value asphyxiation, for investors. If you look down from 30,000 feet, the market is trading at a significant premium…

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