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*O. Mason Hawkins


Ben Graham
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I'm so glad to see the below segment included at Southeastern Asset Management's new web site. When first watching O. Mason Hawkins present his chart at the Richard Ivey Business School, shown in this link:

 

http://www.bengrahaminvesting.ca/Resources/Video_Presentations/Guest_Speakers/2005/Hawkins_2005.htm

 

I thought it was so compelling. Now that it is also posted at SEAM's web site, is great!

 

*******************************************************************************

 

Buying with Large Margin of Safety

 

A significant discount between a stock's price and its intrinsic value (P/V) provides the margin of safety that helps protect capital from significant loss while giving us the potential to generate substantial returns.

 

The chart below illustrates the concept. We buy a business at $20/share, which is 50% of its $40 appraised value. Because it is a superior business with skilled management, our appraisal increases at 12% per year through cash earnings growth and free cash flow reinvestment. If the stock price reaches value after five years, we will have earned 29% per year. As the table shows, a higher P/V paid for a stock means a lower return.

 

http://www.longleafpartners.com/about_us/investment_approach

 

EDIT: Chart Image Inculed Below

about_linegraph.gif.71507c3e1b25407e2b7d4d59bf322010.gif

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*****Ben Graham******

 

It looks like you have a new MO.  You now start your forum posts with an asterisks * to bring more attention to your posts.

 

How is it that you have this unique ability to piss me off with almost every post your write.  I assume it is mission accomplished, as far as you are concerned.  I made a long list in the earlier LVLT thread and now you have picked up a new habit, which is adding * to the start of new threads.  Of course, your likely goal is to bring more attention to your posts.  I believe it is very close to the level of a spammer with the mix of a troll. 

 

If Sanjeev is reading this, I kindly ask him to remove topics that use extra characters to bring attention to their posts, not unlike highlighting all your crap in red, cap locks, italics, etc.  You do them all and you stand out as the neighborhood dink here among a few thousand readers/posters.    In my books, you are the #1 annoying person here, not necessarily because of your content (which I can easily ignore), but because of the way you try to enhance your content to the reader via highlighting, cap locks, italics, using references to great investors such as Mason H, WEB, etc., and now we can add the * to your arsenal of annoying posts.

 

 

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that graph is excellent--it's something that you are aware of, but it is nice to see the returns spelled out.

 

The link to Southeastern Management was provided in the post above you. I'll spoon feed you to a link that you can easily find at the home page of SEAM.

 

Here is an example: http://www.longleafpartners.com/investment_offerings/mutual_funds/partners_fund/performance

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that graph is excellent--it's something that you are aware of, but it is nice to see the returns spelled out.

 

The link to Southeastern Management was provided in the post above you. I'll spoon feed you to a link that you can easily find at the home page of SEAM.

 

Here is an example: http://www.longleafpartners.com/investment_offerings/mutual_funds/partners_fund/performance

 

I'm not sure what you are referring to here--I was commenting on the graph that you posted and indicating that it was nice to see the differences in returns for different discounts to intrinsic value given an underlying growth rate.  I wasn't requesting any "spoon feeding".

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*****Ben Graham******

 

It looks like you have a new MO.  You now start your forum posts with an asterisks * to bring more attention to your posts.

 

How is it that you have this unique ability to piss me off with almost every post your write.  I assume it is mission accomplished, as far as you are concerned.  I made a long list in the earlier LVLT thread and now you have picked up a new habit, which is adding * to the start of new threads.  Of course, your likely goal is to bring more attention to your posts.  I believe it is very close to the level of a spammer with the mix of a troll. 

 

If Sanjeev is reading this, I kindly ask him to remove topics that use extra characters to bring attention to their posts, not unlike highlighting all your crap in red, cap locks, italics, etc.  You do them all and you stand out as the neighborhood dink here among a few thousand readers/posters.    In my books, you are the #1 annoying person here, not necessarily because of your content (which I can easily ignore), but because of the way you try to enhance your content to the reader via highlighting, cap locks, italics, using references to great investors such as Mason H, WEB, etc., and now we can add the * to your arsenal of annoying posts.

 

FFHWatcher,

 

If an intelligent analysts was done on your posted message, I think the conclusion would be that you are a stalker who likes to harass my freedom to speak.

 

If Sanjeev is reading this, I kindly ask him to stop FFHWatcher from harassing me endlessly.

 

P.S. Thank you ValueCarl for your back up.

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Lol, Ben Graham's posts about IV and MoS make for such an obvious message that it is starting to irritate me as well to be honest. Especially in combination with all this attention drawing. I'm also quite sure everyone here knows what value investing is by now, there is no need for a parrot on this message board making topics about almost irrelevant subjects or the most obvious lessons. I'll assume it's well-intended... (In that regard I also don't understand why topics such as 'what phone should I buy' are relevant to this forum, not that this was Ben Graham's initiative.)

 

Had to mention that once. I have no personal beef with any of you.  :)

 

And to respond on your personal message, Ben Graham; No, I did not buy LVLT dollars for 20 cents yet, nor do I intent to. I'm not sure what led you to believe I ever would?  ;)

 

[move]The Trend is Level 3"s friend.[/move]

 

 

Hi tombgrt,

 

Have you bought any LVLT dollars for 20 cents yet?  8)

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*****Ben Graham******

 

It looks like you have a new MO.  You now start your forum posts with an asterisks * to bring more attention to your posts.

 

How is it that you have this unique ability to piss me off with almost every post your write.  I assume it is mission accomplished, as far as you are concerned.  I made a long list in the earlier LVLT thread and now you have picked up a new habit, which is adding * to the start of new threads.  Of course, your likely goal is to bring more attention to your posts.  I believe it is very close to the level of a spammer with the mix of a troll. 

 

If Sanjeev is reading this, I kindly ask him to remove topics that use extra characters to bring attention to their posts, not unlike highlighting all your crap in red, cap locks, italics, etc.  You do them all and you stand out as the neighborhood dink here among a few thousand readers/posters.    In my books, you are the #1 annoying person here, not necessarily because of your content (which I can easily ignore), but because of the way you try to enhance your content to the reader via highlighting, cap locks, italics, using references to great investors such as Mason H, WEB, etc., and now we can add the * to your arsenal of annoying posts.

 

+1

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*****Ben Graham******

 

It looks like you have a new MO.  You now start your forum posts with an asterisks * to bring more attention to your posts.

 

How is it that you have this unique ability to piss me off with almost every post your write.  I assume it is mission accomplished, as far as you are concerned.  I made a long list in the earlier LVLT thread and now you have picked up a new habit, which is adding * to the start of new threads.  Of course, your likely goal is to bring more attention to your posts.  I believe it is very close to the level of a spammer with the mix of a troll. 

 

If Sanjeev is reading this, I kindly ask him to remove topics that use extra characters to bring attention to their posts, not unlike highlighting all your crap in red, cap locks, italics, etc.  You do them all and you stand out as the neighborhood dink here among a few thousand readers/posters.    In my books, you are the #1 annoying person here, not necessarily because of your content (which I can easily ignore), but because of the way you try to enhance your content to the reader via highlighting, cap locks, italics, using references to great investors such as Mason H, WEB, etc., and now we can add the * to your arsenal of annoying posts.

 

Frankly, I've been wondering that too, but there were no complaints from anyone, so I left it alone in case people thought I was over-reacting.  Going forward, I'm going to just delete any posts like that altogether.  This thread is now locked and will be deleted once the message is received.  Cheers!

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