Newsletter - May 11th, 2024

Dear Reader,

Attached is our latest list of stocks passing value screens (below net current asset value, tangible equity, etc.), which don’t meet our investment criteria - and our reasoning.

This may help you avoid some ‘value traps’, and stocks that aren’t sufficiently attractive compared to opportunities available today.

For reports of stocks that pass our quantitative and qualitative standards:

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Berkshire 2024: Part One

Some notes on the Berkshire AGM below:

9:45 Objective

"Increase the operating earnings, decrease the shares outstanding" - simple objective, hard to do - an ideal company if you find these attributes.

21:00 Be businesslike

In investing, independently value the business, and then exploit Mr. Market when his quotes are out of line.

24:00 Tax differential

Don't be reluctant to pay taxes when it makes sense to sell.

Buffett explains his sales of Apple shares when taxes are relatively low (at 21% for Berkshire now), and likely to rise - usually best to cash in some chips when conditions are favorable.

53:45 AI and Scams

Buffett predicts AI will be a boon for scammers.

Common sense should still win out. Caveat Emptor.

58:15 Insurance

Insurance is "equating rate with risk" - similar to investing.

However, it's not a given in investing that higher risk = higher reward (as taught in mainstream finance) - the objective is to find low-risk opportunities that yield outsized rewards.

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Wish you an excellent week ahead.