• DECEMBER 6, 2013

Investors who come closest to Warren Buffett's style

Here is today's recommended reading list from Equitymaster...

Investors who come closest to Warren Buffett's style
Chances are you may not have heard of a US based fund house, Yacktman Asset Management. The fund house though has generated market beating returns by adopting a strategy that we believe resembles Warren Buffett's style quite closely. Interested in knowing how they came about to adopting the methods they do? Well, read on to find out. (Gurufocus)

The RISK- less world
Are we living into a riskless world? Are risky assets today disguised as riskless? Are we failing in pricing risks and factoring the same into our business models? Yes, we are... Let's face it. We have learnt little from the fallout of 2008 financial crisis. The regulator, fund managers and the analysts have been deceiving markets. Making everybody believe that there is nothing to fear. But is the ground reality the same? Read on the short article below from Zerohedge that quite skillfully and satirically draws our attention to the RISK element that continues to bother the world's largest economy.(Zerohedge)

Value investors often appear stupid
One of the biggest challenges for value investors is to not give in to the herd instinct. On paper, this may not sound so difficult. But in reality, it is a rigorous test of your conviction and patience. Sometimes you may look foolish for extended periods. For instance, the way cheap liquidity has inflated asset prices across the globe, investors who may have been prudent appear to have been proved wrong. Are you regretting your cautious stance? Are you about to change your mind? We recommend you read this before you start doubting the wisdom of your prudence... (Peakprosperity)

Is the least loved bull market coming to an end?
The bull market in US equities is now 57 months old. It has been accompanied by almost no improvement in the real economy. The US fed continues with its QE program hoping to bring about a recovery in the economy. However all it has achieved, is an increase in asset prices. The median household income in the US has fallen over the last few years. This brilliant and detailed article, thoroughly examines the issue and comes to the conclusion that the party may soon be over. When the fed begins to taper its QE program, US stock markets could be in for one of the worst corrections in its history.( Safehaven)

Will the stock markets crash in 2014?
There have been various indications, which warn about the market crash in 2014. Various money managers and economists likes of; including Ben Inker, head of the asset allocation group at GMO, and John Hussman of the Hussman Funds, Yale Professor Robert Shiller, a Nobel-prize winning economist have expressed concern over lasting of bull rally. Many of them say the markets are about 40% overvalued. An article in moneymorning has shown 7 such charts which give worrisome clues. Read on to know more about them...( Moneymorning)

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407