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July 22, 2011


How do you make money in a boring range-bound market? Well, you certainly need to be resourceful. Finance guys have given us lots of toys to play with; the trick is to know which ones to use and how to use them correctly. I haven’t spoken much about options, but they are a key weapon in my arsenal. Longtime readers of this site will ... Read More
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January 27, 2011

Three Types Of Positions

In my world, there are three types of positions—investments, speculations and trades. Before you buy a share, you need to mentally assign each position a category; otherwise you will regret it later on. Once you have your categories, it is bad form to change them. Risk control is critical and you have to make sure you adjust your positions correctly over time. Let’s start ... Read More
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December 23, 2010

You Can’t Argue With Stupid

Over the years, I’ve developed a lot of rules for investing. These rules are meant to stop me from doing foolish things and over time, these rules have saved me a fortune. I am now adding another rule—You Can’t Argue With Stupid. Let’s face it; some people just are not cut out to be public company CEOs. Everyone has their skills. Some guys are ... Read More
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October 9, 2010


There are lots of ways to look for interesting stock ideas. I have found that insider buying is one of the best indicators of future stock performance. It operates under a very simple principle. Insiders know more about their business than you do. When they think it’s a good time to buy, it usually is. In fact, it is so simple; I’m surprised that ... Read More
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September 23, 2010

Hidden Value (Advertising Expense)

The equity markets are surprisingly efficient. This is because most people are quite capable of looking at price earnings multiples and finding the ‘cheap’ stocks. Of course, some businesses are better than others. The better businesses normally trade at higher multiples and the worse ones trade at lower multiples. Amazingly, the market is quite capable of sorting this process out. With the addition of ... Read More
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July 9, 2010

Just A Little Patience….

Let’s face it. Running a business is difficult. Nothing ever goes as planned. There are surprises. Things rarely happen on time or on budget. You need to be a realist about this. If you invest in a company and it doesn’t work out right away—you aren’t always wrong. Sometimes things just take time. I cannot emphasize this enough. Many of my best winners took ... Read More
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May 20, 2010

My Currency Epiphany

I’m in Gundagai New South Wales at a charming café having buttered toast with canned spaghetti on top. I’m told it’s an Aussie delicacy. I’ve driven nearly 500 km from Sydney and have already had my first epiphany. It is said that generals always prepare to fight the last war. This cannot be truer when it comes to investing. For decades, currencies have fluctuated ... Read More
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April 19, 2010


Let’s talk operating leverage—or as I like to call it, gearing. Think of your car, you start in neutral, shift up to first, then second. The real speed is when you hit fifth. It takes time and momentum to get there. Gearing is where the real money is made. When you are investing in little companies, you want to look at rapidly growing businesses. ... Read More
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March 21, 2010

Why Invest In Smaller Companies?

To me, investing is about making the most money possible while taking the least possible risk. To do that, you need to figure out where the big gains exist. Study after study has shown that over the past 100 years, smaller companies share prices’ have outperformed larger companies—often by a massive margin. Let’s face it, Wal-Mart is a well run company. It could double ... Read More
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