One of the remains of the Graham-Newman era (except Warren Buffet himself ) is Tweedy, Browne Company LLC.
Founded in 1920, Buffets favorites’ stockbroker, was located at 52 Wall Street, in the same building as Ben Graham had once worked. Even Walter Schloss was sub-renting some space in their tiny office and running his partnership from behind a battered desk in a small room.
They diversified to arbitrage, workouts, etc...[more]
First : What is short selling ?
Short selling is a way profit from falling prices. You can sells shares you don't actually own on the assumption that the price will fall, with the aim of buying them back later for less. But how can you sell something you don't own?
Simple: You can borrow them for a fee from long term investors such as pension funds, banks and insurers who lend the stocks that they have in portfolio. This helps to boost their own returns. The borrower then sells the borrowed stock, hoping to buy them back on the cheap to return it to the owner...[more]
We just completed backtests on our ERP5 Best Selection screener using our proprietary backtesting tool. The results are impressive. Between June 1999 and June 2011, the backtest generated a return in excess of 700%! The novelty we have this time is that we also modelled this in our profitmapper tool. We created a portfolio of 100.000 euro in cash and simulated investing this money according to the ERP5 best selection strategy...[more]
Benjamin Franklin first stated that the only two certainties in life are death and taxes. Investors have become so gloomy that their expectation are low.
"We are going to hell ! ", "Stockmarket crashes", "Experts are expecting a double dip recession": this is the kind of stuff that we have read and hear , the last few days ,on television and in the newspapers.“ Growth is too slow for easy deleveraging, politcians are at loggerheads, and global imbalances have hardly diminished. If central banks respond with more newly-minted money, they could make markets more volatile, and the next crisis all the more exciting...[more]