Rip Van Winkle’s Thursday Morning Linkfest

Good morning readers! Its been  a long time since my last post. I’ve pulled a bit of a Rip Van Winkle and slept through March and most of April.  Well, have no fear, I am back and I do have a few posts in the pipeline.

I’ve noticed that other value bloggers have been slowing down a bit as well, which I attribute to the lack of good buys out there. With a few exceptions, the market has been going up seemingly everyday. Meanwhile we must exhibit patience and wait for the “fat pitches” that will inevitably come our way.

One of the best ways to be ready for the fat pitches is to build a “wishlist” of great companies and wait for something to happen to bring down the price. John Dorfman writes about some of these great companies and even found a few that are slipping near attractive valuations.

Geoff Gannon, in my opinion the best investment blogger around, has also returned from a long break to answer some reader mail. In this post, he writes about spinoffs, one of my favorite hunting grounds.  Speaking of spinoffs, Oddball Stocks covers Huntington Ingalls, the recent shipbuilding spinoff from Northrop Grumman.  While I believe that Huntington’s value can only be realized with higher growth and/or significant cost reductions, the post is very detailed and a good example of how to evaluate a spinoff.

Richard Beddard, an excellent blogger from the other side of the pond introduces us to the Residual Income model for valuation. I remember this model from my CFA studies as very easy to use but also risky because it relies on accounting numbers. Either way, its always nice to have another model in your toolbox and the comments and follow-up posts are enlightening.

Even the most dyed in the wool value investors invest in mutual funds from time to time. Barry Ritholz at The Big Picture explains his reasons for firing a fund manager when managing client accounts. The reasons are great for individuals and professionals alike. Barry also points us to an excellent article on the latest bubble– the cost of higher education. I for one hope college costs go down by the time my child turns 18!

Finally, in disappointing news, the Rational Walk will cease regular operations. Ravi has managed one of the best blogs for the last couple of years and we wish him the best of luck. Fortunately for us, he will keep his old posts available, so for those looking for excellent insight into Berkshire Hathaway or the value investing process, make sure you browse through the archives.

Its good to back. I’ll be back soon with some fresh posts. If you have any questions or would like to see something on this blog, contact me.

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