Sunday, February 26, 2006
Random musings
- Institional Shareholder Services is at it again. Patrick McGurn, whose firm, argued that Mr. Buffett had lost his independence as a director at Coke now argues that Berkshire Hathaway ought to increase its analyst coverage. Read for yourselves, here. In the same article, someone (who happens to run an investor relations firm) also argues that Berkshire Hathaway ought to ramp up its own IR department. Independent advice? I’m not so sure.
- Interesting article from this weekend’s NY Times on the declining equity risk premium. U of C professor John Heaton is quoted.
- Whitney Tilson has updated his Web site. Here are a number of links (here, here, and here) to quotes that ought to be placed on your whiteboard, and referred to before ever making a trade.
I came across a great quote from Phil Fisher which reminds me to read "Common Stocks and Uncommon Profits" again:
Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others about which they know nothing at all. It never seems to occur to them that buying a company without having sufficient knowledge of it may be even more dangerous than having inadequate diversification.
