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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (2403)	11/8/1997 9:23:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 78627

Words of wisdom from a value investor with a great track record. I saw this gentleman speak last year and was reviewing my notes on his lecture for a discussion I was having with Mike privately. I thought this might interest the group, though I will not use the investor's name because I do not have his permission. You have never heard of him, but that's only because he does not seek the spotlight. Advice on finding good value investments. 1. Go where the grass is not trodden down. i.e. don't look at the stocks everybody else is looking at. Don't compete with smart people, compete with dumb people. 2. Stay within your "circle of competence" 3. Think honestly about how many other people have probably done this same analysis. i.e. if you got it from the Wall Street Journal or a Wall Street research report, you're probably not the first one to figure this out and there may be something you're missing. 4. If the stock is recently up a lot, it means a lot of other people got there first. Look for a flat line, left for dead chart pattern. 5. When you tell other investors you're buying something and they make a face, you know you're on the right track. Learn to recognize that face and to understand what it means. 6. Primary research. Talk to the company and get to know the product. Everybody already knows what's written in the paper. 7. Always go through the proxy with a fine toothed comb. Consider carefully who's in charge, who owns the stock and what their motivations might be. I make my biggest mistakes when I forget this simple, but very difficult to follow, advice. Jim