berkshire101

Wouldn't lower commodity prices be a good thing? I'm not complaining about paying less for my gas at the pump.

The best thing about investing is that there are many ways to skin a cat, figuratively of course.

+1

Next topic will be how to write better and faster! Go! :D

the first 80 percent of the available information is gathered in the first 20 percent of the time spent. The value of in-depth fundamental analysis is subject to diminishing marginal returns." I think it was Buffett who said you don't need to know a man's exact weight to know if he's fat or not. I suppose if you're buying companies in distressed situations then having constant information will ease your concerns. I'm not smart enough or have the balls (I'm Asian XD) for those types of investments. Maybe one day, but not today. @tlee19802 I think if you're passionate about the investment process (research, analysis, etc.) then you'll find time. It's like exercising. If you want to get in shape then it'll be a habit and daily routine. Same goes for investing.

Yeah, I bet. With any skill, it'll take time and effort. I'm just trying to be a slightly above-average investor. Otherwise, it would be indexing for me haha.

@west Thanks for the book recommendation, will definitely give it a read! :)

I probably spend around 1-2 hours a day reading. And another hour after that to write down my notes. I'm reading mostly books related to investing, business, leadership/management, personal development, health, etc. If it's a biography, I usually read slower. But I'm skimming and looking for the main points.

Thanks for the advice guys. I do enjoy the investing process and want to possibly venture into the industry. I suppose the best approach would be to slowly build relationships with people in the industry by showing interest in their work, asking meaningful questions and such like mhdousa pointed.

It was either Todd or Ted who said they read 500 pages per day. Or week. I'm not sure. But the question I have is, how do you go about increasing your reading speed? I'm sure they're not reading 500 pages word for word. There has to be some sort of method to their madness. I implemented these two techniques into my reading and it really helped. I can maybe finish a whole book (usually 200-300 pages) in a day or two. But it's no where near 500 pages. https://www.youtube.com/watch?v=g_hh0i6PML8 Any thoughts or advice?

Bought some more CLB.

I'm not on the level anywhere near the likes of Packer, Eric, Gio, Sanjeev, etc. But here's my 2 cents. I'm in the Buffett camp of buying high ROIC companies at reasonable prices. I differ in that I prefer to look in the small to mid size range. As for how much time, it depends. Some businesses are just easier to understand than others. For example, medical equipment and services companies. I work with hospitals and deal with pharma companies, insurance, software, etc. So I can see why changes are slow, there's a lot of regulations, and systems are outdated. Examples of such companies that have a competitive advantage are MLAB, QSII, CPSI, MD, USPH, and ISRG. As for research process. I usually compute at least 10 years worth of financial data. That can take anywhere from 30-60 mins depending on how difficult it is to get the data. Then I read about 5 years worth of shareholder letters and 10-k files. That can take maybe a day or two. If there are investor presentations then I'll look at those too. Then I'll take a look at their recent quarterly report to get a feel of how the company is performing. With all that information, I sit down and write a quick one or two paragraph description of how the company makes money, where it might be in 10 years, possible risks, etc. And then I determine a price I'm willing to pay. It's usually 20-30% below the historical 10 year average ratios of like P/E, P/B, P/S, etc. If it's not, then it goes on my watch list. As for YTD, I'm doing slightly better than the S&P 500. At around 15-16%. I've been investing for about 5 years and my returns since inception are around 22%. And I mainly do my own research. Most of the research is done prior to making an investment. Afterwards, I usually check up on the company once a year when the annual report is release. So the process goes like this: - Screen companies - Gather and compile data - Develop a thesis and value - Is the price right? If yes, buy. If no, it goes on watch list. - And check up on investment once per year. Best of luck to you! I too work a 40 hour job, but it's with the state so there's some downtime here and there to perform research at work. :)

Why is that? I use IB and I could buy the PSH shares with no problem at very low cost. Fidelity can do it too but would charge you a pretty big commission. I'm with Schwab and PSH doesn't even show up in their database. Lame, I should switch brokers.

Hello y'all, I'm interested in learning about the wealth management industry. It seems like the best thing to do so is to find a mentor. The question is, how would you go about finding a mentor? There are some wealth management firms located in my area. I was thinking about contacting someone there to see if they'll provide mentoring. In return, I would be willing to work for free. I don't have any education or experience in securities analysis aside from investing as a hobby. I'm 25 and work for the state as an analyst auditing hospitals. I have a bachelors in civil engineering and minor in communications. I do have fairly good programming, web design, graphics, and excel skills. The main things I want to learn are how to raise capital, market to clients, and address the concerns of clients during market volatility. Would it be best to be direct and offer to work for free so I can gain exposure to the industry? I never had a mentor before so I'm not sure how this whole thing works. Any suggestions and feedback is greatly appreciated. Thanks. :)

Can you explain the concept behind fundamental weighted index? I was thinking about trying an equal or price weighted approach.

Yeah, I asked that question.

Thanks oddball. Is this the book you were referring to? http://www.amazon.com/Quantitative-Value-Web-Site-Practitioners/dp/1118328078/ref=sr_1_1?s=books&ie=UTF8&qid=1417930711&sr=1-1&keywords=wes+gray And no, I don't have $250k to front. Maybe one day, but not yet. =(

Ackman is having quite a year in 2015. I can see why people are suddenly interested in the IPO. I would happily let Ackman invest my money. Too bad there's a wall to climb to do so for US investors.

Hello, I've been a long-term lurker and decided to finally join the club. It's nice to meet everyone. =) I've been thinking about this for a while, but has anyone thought about creating your own index or ETF? I was inspired by the magic formula and came up with my own version. The back testing showed satisfactory results so I was wondering if you could create an index/ETF and have your broker make a massive purchase of all those stocks at once, but with limited commission fees. Some folks have kindly suggest taking a look at https://www.motifinvesting.com/ and http://www.exchangetradedconcepts.com/.