Saturday, 25 July 2015

Weekend reading

One from the archives: James Montier's 2006 paper titled the "Little Note that Beats the Market"
"In general we find that the EBIT/EV value strategy is very powerful. For instance in the UK, it 
outperforms the equally weighted market by nearly 13% p.a. over our sample! Performing even better than the Little Book strategy! A pure value strategy based on this modified earnings yield seems to perform particularly strongly in the US and UK.

However, pure value strategies may have added career risk for professional investors. We show that a pure value strategy suffered far worse during the bubble years, than the Little Book strategy. So a fund manager following the Little Book strategy was unlikely to have been fired whilst a pure value fund manager would have found their life very uncomfortable."

Peter Lynch's investment principles (originally on Value Walk)
Peter's Principle #7: The extravagance of any corporate office is directly proportional to management's reluctance to reward shareholders

Peter's Principle #17: All else being equal, invest in the company with the fewest colour photographs in the annual report

Buffett’s Error of Omission in Disney — Magic Innovators in Asia? (BeyondProxy)

Great collection of Japan related articles and analysis from Undervaluedjapan

BreakingviewsNikkei and Dealbook on the recent purchase of the Financial Times

A very well written primer on John Malone and his empire (Jnvestor)

Morgan Downey, the author of Oil 101, interviewed on the Investors Podcast
The interview is pretty good but the book is highly recommended for its straightforward description of the oil industry.

Warren Buffett, and Bill and Melinda Gates on Charlie Rose

Dr. Henry Kissinger fireside chat with Eric Schmidt (Google Talks)
They talk a bit about his most recent book World Order, as well as other recent political developments. My favourite book from him is Diplomacy, which does a wonderful job of describing the history of international relations (and the good news is that it is also somewhat shorter than the Lord of the Rings trilogy). Would also recommend his book on China titled very fittingly On China. The Economist TV ads at the beginning of the video are priceless (as is the whole interview)

Howard Marks interviewed by Barry Ritholtz (Ritholtz)

Billion-Dollar Bloodlines: America’s Richest Families 2015 (Early to Rise)

History of the NBA in Africa (NBA)

Europe's Demographic Tides (Cook and Bynum)
A new map created by Germany’s BBSR shows in greater detail than has been previously available the population shifts impacting Europe. The BBSR collected data between 2001 and 2011. While that might sound slightly outdated, these are actually the most up-to-date figures Europe has to offer, as 2011 is the most recent year for which comprehensive population data is available for the whole of Europe. According to its makers, the map provides a level of detail previously unavailable, as it is the first ever to collect data published by all of Europe’s municipalities. The results are impressively comprehensive and reveal a few surprises