Sept 2011     Issue 5

Invest like you are buying a business–kovitz-investment-group
This is from the quarterly update from the Kovitz Investment Group. It highlights one factor that can lead to assets being mis-priced as businesses are compared with a basket of other similar but not identical companies. This often throws up anomalies which can reward the thoughtful investor with long-term out performance.

Warren Buffett interviewed by Charlie Rose
This interview in August was shortly after Buffett made his call for higher taxes for the American super rich. This is a typically lucid interview, in which Buffett (who just turned 81) discusses his views on the US economy, in particular its relationship with the housing market. He also discusses the Chinese economy, the role of the US Government, Europe, and touches on the succession strategy for Berkshire Hathaway.

Howard Marks comments on the August gyrations in the market’s%20Behind%20the%20Downturn%2009_07_11.pdf
Howard Marks disects the synchronised concerns, which caused the extraordinary volatility in the markets during August. We particularly liked the comment on the impact on US treasury yields from the S&P downgrade: “the downgrade of Treasurys made people so worried about the elevated risk in the world that they ran to Treasurys for safety. So much for the supposed rationality of markets”.

Warren Buffett succession plans
Click here
Often criticised for his lack of visibility on his succession plan for Berkshire, Buffett has moved this process on one step closer, selecting Richard “Ted” Weschler as one of now two investment managers, who will take over the running of part of the BRK investment portfolio. It is expected that this will eventually be a team of around five. There were many articles written after this announcement; this one gave more colour to Weschler’s investment style and experience: his focus on a small number of securities, multi-year hold period, experience of buying whole businesses, the importance of reading deeply into each subject he invests in and his lack of ego.

A Value Conference in India
Rahul Saraogi is hosting VALUEx India over the three days 7th-9th November in Mumbai. This not for profit format has been executed successfuly in Europe and the US and provides an excellent open forum for sharing of ideas. For more details on the event, please visit: