Morningstar.com has an article about that other "little book", Christopher Browne's 'Little Book of Value Investing'.
Chrisopher Browne is a managing director of Tweedy Browne Company, LLC, a company associated with Ben Graham and Warren Buffett.
He recommends avoiding companies saddled with debt, and buying companies with a high earnings yield (should sound familiar to anyone following the Magic Formula), low price/book, with insider purchases. And like Greenblatt, he knows that few people will be able to follow his advice, because they lack the temperament (Greenblatt says patience). The article links to an excerpt from the book, and another useful article on moats and investor temperament.
Tomorrow evening, I'll post my results so far. I plan on posting a portfolio update every month.
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2 comments:
Dear Tom,
I was reading the forums at zecco and followed the link in your signature. I liked your site and your investment strategy with zecco. Can you please contact me when you have a chance. Thank you for your time.
Regards,
Alfredo
As an investment analyst myself I would think it is essential to do further screening (an important question: the origin of the high ROC in a competitive advantage?). Greenblatt's lists are in my opinion a great place to start!
Success in investing
Hendrik Oude Nijhuis
www.magicformulastocks.com
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