´´ Walter J. Schloss's Simple Message on Value Investing

Friday, December 20, 2013

Walter J. Schloss's Simple Message on Value Investing

I don't like to lose money. I don't like Debt.


  • Started fund when Graham closed his one; people came from Newman
  • When you make a good purchase you often don´t know how good it really is
  • Likes to buy stock hitting new lows; finds valueline very helpful; doesn' t talk to the management
  • Doesn't like to lose money; buys stocks protected to the downside, the upside will look after itself; buys stocks with little debt, he doesn't like debt; could work out well with debt but he doesn't like it; does buy stocks at new lows, usually they are in trouble
  • Likes stocks with simple capital, e.g little to no debt, management will own stocks, has history about them too (how long in business, what business)
  • Was never very good in judging character, might be charming people, found it better to look at numbers than people itself, 
  • Usually stock goes down after buying, trying to protect capital.  doesn't like to lose money, buys more when stock goes down, doesn't like debt
  • Likes to get 50% profit if he can, you have to be willing to make mistakes
  • Debt gets a lot of people in trouble; likes to buy below book; good history last 20 yrs, with little debt
  • Margin of safety doesn't gurantee that you get it right
  • Don't get emotional about stocks; put the price in where you want to buy the stock, dont watch the ticker (good til cancelled)
  • If buying a good company wants to buy at discount

Source:

 http://www.bengrahaminvesting.ca/Resources/Video_Presentations/Guest_Speakers/2008/Schloss_2008.htm


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