Let’s explore some potential investing strategies in 4 different stock sectors: technology, healthcare, energy, and real estate. We’ll start with tech, which had a huge drop today worth serious examination. Continue reading “Sector Study Session”
Author: Douglass Gaking
Doug is a certified business educator and music educator. He currently teaches businesses and computer science at Avon High School in Avon, Indiana and is the director of IGNITE Winter Percussion in Shelby County, Indiana. He was a band and choir director for 13 years and continues to judge and clinic with ensembles. He performs drums and percussion, composes and arranges music for concert band, marching band, and percussion ensemble, and teaches and writes about business, finance, and economics. He has a B.M. in Music Education from Butler University and an M.B.A. in Economics from Southern New Hampshire University. He is also an avid reader and a lover of art, history, science, and nature, especially birds and other wildlife.
New Articles Posted This Week
Have you been to the Gaking Finance resources page yet? It has sections for articles, books, links, and videos. I have been adding new content almost every day. For example, I have added some fantastic investing resources to the articles page this week:
- 3 Country ETFs to Consider
- Beware of Concentration Risk in Country ETFs
- Busting the Frontier-Market Myths
- Chart: Where Is Global Growth Happening?
- Creating Alpha With Smart Beta in the US: Focus on Quality
- Emerging Markets Are Not All Created Equal
- Owner Earnings: Warren Buffett’s Favorite Formula
This library will keep growing, so keep checking back for more.
Book Review: Buffettology & The New Buffettology
Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World’s Most Famous Investor
There are plenty of books about Warren Buffett available at any bookstore or library. What makes this one unique is that it is not written from the perspective of Warren Buffett’s cult following. After her divorce with Warren Buffett’s son, Mary Buffett capitalized on a rare opportunity to publish insider information about one of the richest people in the world and his investment strategies.
Rather than quote Warren Buffett’s shareholder letters to death like most authors, Mary sticks to the details of Warren’s investments, how he made each choice and how it worked out. She provides a lot of quantitative data that is useful for reverse-engineering Warren Buffett’s portfolio.
Information from this book definitely helped me refine a few aspects of my investing philosophy and my screening process. Mary is concise and unemotional, making this a quick and productive read.
The New Buffettology
This sequel to Buffettology updates Mary Buffett’s analysis of Warren Buffett’s investing strategies from the first book. It is a fine addition to the library of materials available about Warren Buffett, adding new investment decisions from his history that I had not previously read about. It also brings readers of the 1997 Buffettology up to speed on developments getting into the 21st century, when the bubble of the 1990s burst, hurting many portfolios, but creating new opportunities for patient value investors.
How I Estimate Intrinsic Value
Value investing is based on the premise that the market is irrational, and that stock prices therefore do not always match the actual value, or intrinsic value, of the security they represent. Value investors like Warren Buffett try to calculate a company’s intrinsic value to see if its stock is currently selling at a discount or a premium, and by how much. Continue reading “How I Estimate Intrinsic Value”
Econ4All 