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Newsletter - May 18th, 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:

 


 

Berkshire 2024: Part Two


Some notes on the second and third hours of the Berkshire AGM below:




1:02:45 Look in the mirror


Investing, as Buffett defines it, is a solitary business. No matter the input, the investment thesis only needs to make sense to you - to pull the trigger.



1:11:00 Climate change and Inflation


Climate change and inflation, done right, benefits the risk bearer i.e. the insurer. (Worth thinking about when you're the insured.)



1:16:30 Value for money


In investing, focus on what you're getting for your money.


We look for as much value in hand (in earnings and assets) as we can get - and we tend to get the most value among stocks that are hated by the market.



1:31:30 Capping losses


Berkshire always caps its losses on insurance contracts it writes (here referring to cyber insurance). You never want to expose yourself otherwise.


Berkshire's approach in insurance is on how much they will lose - and work from there. A similar approach in investing is invaluable.



1:48:15 "Best world that's ever existed"


This is the best world that has ever existed in human history.


Despite this, most people aren't much more satisfied with their lives than previous generations. In one chapter of the 'Psychology of Money' (by Morgan Housel), the author posits that control over your time is a good predictor of your sense of well-being.



2:22:30 "Only swing at pitches you like"


The best ideas tend to be few and far between - swing only when a stock is right in your sweet spot. (But do swing when it is.)


[Also note that Buffett is referring here to managing large sums of money, not small sums i.e. >"$10bn" not <"$10mn".]


 

For reports on the best investment values in stocks worldwide:



 

Wish you an excellent week ahead.

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