Glenn Busch

The 16 Golden Rules of Investing

by Glenn Busch February 17, 2012
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Walter Schloss, Warren Buffett’s former officemate at the Graham-Newman partnership, is one of the lesser known heros of value investing. After leaving Benjamin Graham’s firm Mr. Schloss started his own hedge fund where he generated compounded annual returns of over 15% for more than five decades. Late in his investing career Walter typed out his 16 rules for investment success. Frank Voisin of Frankly Speaking has reposted Walter’s 16 rules.

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Covered Call Trades on ConocoPhillips and Eli Lilly in our Enhanced Dividend Income Portfolio

by Glenn Busch February 6, 2012
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The end of 2011 provided a lot of opportunities to sell covered calls against our oil and energy positions. We already sold one covered call against our ConocoPhillips (COP) position that expired worthless in November of 2011 and in January of this year we had another one.

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RealD a Real Downer for Regal Entertainment Group

by Glenn Busch January 12, 2012
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Regal Entertainment Group (RGC) owns 1,222,780 shares of RealD (RLD), maker of digital 3D cinema systems. At one point, Regal’s holdings were worth $42.8 million. Now? Not so much. Shares in RealD are trading around $8.78, a 74% decline from its highs set back in May of 2011. Regal Entertainment Group’s stake in RealD is now worth around $10.7 million.

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Value Investing and the Terrible, Horrible, No Good, Very Bad Year

by Glenn Busch January 11, 2012
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Last year, 2011, was not the best year for a variety of value investing strategies. Jae Jun at the Old School Value Blog released his 2011 performance numbers for a handful of value investing styles and screens and it wasn’t pretty.

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The DNA Sequencing Revolution

by Glenn Busch January 10, 2012
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The industrial revolution was sparked by the declining cost of engines and their increasing efficiency. Soon other businesses other than mining operations, like textile manufacturing, were transformed by the application of cheap and efficient power. The same thing is happening today with our data revolution.
Cheaper and faster data is and will have profound effects on businesses other than computing, like healthcare.

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Asking the Right Questions

by Glenn Busch January 10, 2012
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One common error of investors is to make things too complicated. One embodiment of this is the complex financial models found in analysts’ spreadsheets. Without a grasp of the right questions and a good dollop of wisdom, these can often obfuscate as much as enlighten. There is a reason Buffett does not even use a calculator when valuing a company.

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Amazon vs. the Retailers

by Glenn Busch January 6, 2012
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I hate shopping. I just want to get what I want and get out of there. I don’t want to waste my time driving, parking, wandering the store, and then having to go to another store if I can’t find what I want. I love shopping on the internet. I’m always near a computer and if I need something with just a few clicks of the mouse it is on its way. The best part is usually the things I want are cheaper online. The shipping costs may change the cost structure but I’m glad to pay the shipping costs because it keeps me away from stores and frees up my time to do something else. I’m not the only one.

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Sequoia Parting Ways with Warren Buffett

by Glenn Busch January 2, 2012
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Warren Buffett turned the world onto the Sequoia Fund. Then Warren Buffett’s Berskhire Hathaway (BRK.a, BRK.b) became a top holding in the fund and helped Sequoia provide marketing beating returns. Now Sequoia is turning away from both Warren Buffett and his company.

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Is the Housing Sector Making a Comeback?

by Glenn Busch December 30, 2011
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Some big hedge funds and asset managers are putting their money to work in real estate: Caxton Associates, SAC Capital Advisors, and Blackstone (BX). Bob Johnson and Jason Stipp of Morningstar (MORN) discuss in the video below some of the key housing market indicators that are pointing towards a better tomorrow for real estate.

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An Opportunity to Short Circuit City Again

by Glenn Busch December 29, 2011
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In the US the debate is whether the country can support one or zero highly profitable big box chains. Best Buy – the bears argue – is the showroom for Amazon. In Australia as I said we still have two chains – its as if Circuit City were still around. Moreover because Harvey Norman has a balance sheet it can survive quite a long time and Gerry Harvey is prone to say it is the competitor that will go out of business. But Harvey Norman really is losing share to JB Hi Fi and ultimately both will lose share to the internet.

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