Comments on: The Follies of Value Investors http://streetcapitalist.com/2007/11/27/follies-of-value-investors/ Wisdom on such diverse topics as: spin-offs, merger arbitrage, post-bankruptcy equities, global macro commentary and short ideas. Thu, 11 Mar 2010 12:12:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Eddie Lampert http://streetcapitalist.com/2007/11/27/follies-of-value-investors/comment-page-1/#comment-28 Eddie Lampert Thu, 29 Nov 2007 21:55:49 +0000 http://streetcapitalist.com/2007/11/27/follies-of-value-investors/#comment-28 Your point about complex situations is especially important. As a value investor it is your job to study the hard-to-understand stuff. Chances are something is undervalued in the first place because it is misunderstood. If you don't put in the effort to find out what folks are missing, I don't see how you can expect to be successful. Your point about complex situations is especially important. As a value investor it is your job to study the hard-to-understand stuff. Chances are something is undervalued in the first place because it is misunderstood. If you don’t put in the effort to find out what folks are missing, I don’t see how you can expect to be successful.

]]> By: Quants, charts and trends, oh my! | FutureBlind http://streetcapitalist.com/2007/11/27/follies-of-value-investors/comment-page-1/#comment-27 Quants, charts and trends, oh my! | FutureBlind Thu, 29 Nov 2007 07:00:33 +0000 http://streetcapitalist.com/2007/11/27/follies-of-value-investors/#comment-27 [...] Ali writes a great post about the follies of our fellow investing clan. I disagree with a few of the specific points he [...] [...] Ali writes a great post about the follies of our fellow investing clan. I disagree with a few of the specific points he [...]

]]> By: Tariq http://streetcapitalist.com/2007/11/27/follies-of-value-investors/comment-page-1/#comment-26 Tariq Wed, 28 Nov 2007 16:35:12 +0000 http://streetcapitalist.com/2007/11/27/follies-of-value-investors/#comment-26 You're make a good point, there are poor attitudes on the otherside as well. I'm just more exposed to the "value elitism". I've seen Victor Niederhoffer criticize value investing for not using enough scientific rigor in one of his later books. He might be better off devoting his attention to his own performance instead of commenting on others. Re: FFH & ORH I felt that as a business, ORH was undervalued- esp with the lack of hurricanes and they also held a good CDS position. So I felt that by owning both of them I'd be able to gain leverage. You’re make a good point, there are poor attitudes on the otherside as well. I’m just more exposed to the “value elitism”. I’ve seen Victor Niederhoffer criticize value investing for not using enough scientific rigor in one of his later books. He might be better off devoting his attention to his own performance instead of commenting on others.

Re: FFH & ORH
I felt that as a business, ORH was undervalued- esp with the lack of hurricanes and they also held a good CDS position. So I felt that by owning both of them I’d be able to gain leverage.

]]> By: Bill aka NO DooDahs! http://streetcapitalist.com/2007/11/27/follies-of-value-investors/comment-page-1/#comment-25 Bill aka NO DooDahs! Wed, 28 Nov 2007 15:40:59 +0000 http://streetcapitalist.com/2007/11/27/follies-of-value-investors/#comment-25 Good post. While value guys are generally the most egregious examples of style elitism, including comments like Merkel's "TA doesn't work" (in comments to Portfolio) and going all the way back to Ben Graham making flawed "straw man" arguments against other styles in The Intelligent Investor, there are examples from other sytles. Just a few: The quant who says "if you think you can learn something useful from talking to management, then I have nothing to say to you," or James Altucher making "straw man" arguments about the value style in Trade Like A Hedge Fund, or Vic BlowUpOnceADecadeHoffer with comments on value investing and trendfollowing in interviews and on his blog. We (all of us, not just value guys) need to realize that, even if we find "A" method that we're happy with and makes us money, we have not found "THE" method. Off topic, doesn't FFH hold a bunch of ORH stock? I thought they did, but memory may be failing me. Isn't there some double-counting in having both? Good post. While value guys are generally the most egregious examples of style elitism, including comments like Merkel’s “TA doesn’t work” (in comments to Portfolio) and going all the way back to Ben Graham making flawed “straw man” arguments against other styles in The Intelligent Investor, there are examples from other sytles.

Just a few: The quant who says “if you think you can learn something useful from talking to management, then I have nothing to say to you,” or James Altucher making “straw man” arguments about the value style in Trade Like A Hedge Fund, or Vic BlowUpOnceADecadeHoffer with comments on value investing and trendfollowing in interviews and on his blog.

We (all of us, not just value guys) need to realize that, even if we find “A” method that we’re happy with and makes us money, we have not found “THE” method.

Off topic, doesn’t FFH hold a bunch of ORH stock? I thought they did, but memory may be failing me. Isn’t there some double-counting in having both?

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