tag:blogger.com,1999:blog-9051216654435357952024-03-14T07:50:23.920-07:00Returning CapitalMr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-905121665443535795.post-534251535794876852011-02-15T12:47:00.000-08:002011-02-15T12:47:56.561-08:00USD crosses RSI median, enters cloudland<div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9Q_rXDrxvYCx2Xhoob-42aK_MIE1d-TelWYT85Q5f32ItI-OLy8HqLaPmbUMLJFcQWp9AzMnyd2YqEzGTm4EwlnX6nb9f_d-ksi_WOiECCRYKXu0iZAPwP47FM5raWX6di0B4EpTZKgCg/s1600/wsx.png" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" h5="true" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9Q_rXDrxvYCx2Xhoob-42aK_MIE1d-TelWYT85Q5f32ItI-OLy8HqLaPmbUMLJFcQWp9AzMnyd2YqEzGTm4EwlnX6nb9f_d-ksi_WOiECCRYKXu0iZAPwP47FM5raWX6di0B4EpTZKgCg/s320/wsx.png" width="320" /></a></div>RSI now over 51, clearly in upper half of RSI. Having entered cloud from below, tendency to explore toward upper limit of cloud, this would be circa 80 now. MACD giving lots of leeway for this to take place. Only question, does it go past that doubly achieved 81.25 if it breaks past the cloud? No guarantee of that happening, though. The cloud membrane could prove impermeable!Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-79412853908545691482011-02-11T06:12:00.000-08:002011-02-11T06:12:43.090-08:00Dollar approaches median on RSI<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwZy15KcbHPfQe0GTNxkK2vWP0Bm1lcQmgCH_cuy3dvz1eJxtoSR1j-Io-4LsK36xwapcbiJR9MEOsOHN_g_aDBFnLtQa1D25psbBTHFd7STGmQlV-pVNJaceD9lAT2y8dLG_d62JevVMd/s1600/vvv.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwZy15KcbHPfQe0GTNxkK2vWP0Bm1lcQmgCH_cuy3dvz1eJxtoSR1j-Io-4LsK36xwapcbiJR9MEOsOHN_g_aDBFnLtQa1D25psbBTHFd7STGmQlV-pVNJaceD9lAT2y8dLG_d62JevVMd/s320/vvv.png" width="320" /></a></div>Intersect w 50-day @ 79.00 more likely, supported by rising MACD. Angle of approach to RSI median suggests breakthrough into upper half of RSI range. Then look to 80.50.....Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-45472945149296669412011-02-09T05:14:00.000-08:002011-02-09T05:15:05.078-08:00Dollar Rise Coming Into Focus<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7Bs_h6Y6YJZ6F1qmJShq0IvQ4ftt0CgOGYvkf5HCDSo8v6ISyud-DSwe8XuixYtfxuCSwo7aqqZCA_b5Q3uGizMlsDAg0KaZWQ9YdM37C6HaWq4z14dTlu4V04JFn4uQN32jMR1twhb32/s1600/bbb.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7Bs_h6Y6YJZ6F1qmJShq0IvQ4ftt0CgOGYvkf5HCDSo8v6ISyud-DSwe8XuixYtfxuCSwo7aqqZCA_b5Q3uGizMlsDAg0KaZWQ9YdM37C6HaWq4z14dTlu4V04JFn4uQN32jMR1twhb32/s320/bbb.png" width="320" /></a></div>Dollar hit an interesting micro-low yesterday at 11:30 AM, getting close enough to a point it could bounce off of in order to resume its rise, <a href="http://returningcapital.blogspot.com/2011/02/dollar-headwind-update.html">as I suggested</a> might be necessary (77.60 was my thought). Probably got close enough for jazz-rock. So, a number of pieces are in place for the dollar to continue higher. The beginnings of a little handle formation are evident in the <a href="http://en.wikipedia.org/wiki/Relative_Strength_Index">RSI</a> and USD itself, which, at this juncture, points us higher. Then, the MACD is showing that classic "uptick off the bottom" which provides impetus, and at this point, room to run to the upside. What causes the next (temporary, of course) USD pop? Subsidence of China issues/fears, re-emergence of Euro instability, heightening of (inadequately anticipated) <a href="http://en.wikipedia.org/wiki/MENA">MENA</a> fissures/implosions---all three? Look to 79.16, the "armpits" hit on the second and last weeks of December, as a convenient next achievable <a href="http://en.wikipedia.org/wiki/Mountaineering">"hut"</a>, where it can pick up some Snickers bars and decide what to do after.Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-33599691833240195552011-02-07T10:39:00.000-08:002011-02-07T10:39:29.335-08:00Dollar Headwind update<div class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaw-fLGO9p2QClLA1uUpj_SS85tjVMeWQOzL0UMovuOavU-eByuTDARmsdZmAeY-19AubMbMsuPmkAsc9_fMz9IjaFGRSbWQumZvIolvUb8YpIgGEaJKXGg3T0TFXGjWyMKUVZbUPl-olY/s1600/aaaaa.png" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" h5="true" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaw-fLGO9p2QClLA1uUpj_SS85tjVMeWQOzL0UMovuOavU-eByuTDARmsdZmAeY-19AubMbMsuPmkAsc9_fMz9IjaFGRSbWQumZvIolvUb8YpIgGEaJKXGg3T0TFXGjWyMKUVZbUPl-olY/s320/aaaaa.png" width="320" /></a></div>The dollar is performing a little more quickly than I anticipated in my most recent <a href="http://returningcapital.blogspot.com/2011/02/usd-mena-happy-returns.html">post</a>. Because of the quick run-up there's a significant chance of a pullback to circa 77.60 before resuming upward move to intersect the 50-day around 79. Passing 79 before Feb. 22 leads to the next move to 79.50 by March 1 or so.<br />
15% chance of a retrace all the way back to 76. 15% chance this up move goes straight on up to 78.50. All this seems to add up to something of a headwind for equities and commodities---and possibly a tailwind for volatility (though I wouldn't count on much there, given the massive QE forces at work to hold vol down as much as anything).Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-85050442341379429952011-02-02T21:56:00.000-08:002011-02-02T21:56:33.069-08:00USD: MENA happy returns<div class="separator" style="clear: both; text-align: center;"></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKG9cFPL1H-tKFPlJOf09afC3O_kJS7Qg6ajdWxdcAvMEo25S6nMUtaoHXBtVDezrGJ8kFYMOlmM69DOzUyz0YXsoNthYHCkBEGnruW-fCI1GFASuhdSiN0eIgP3pAdGv1AN-eKj3gPejD/s1600/usd.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKG9cFPL1H-tKFPlJOf09afC3O_kJS7Qg6ajdWxdcAvMEo25S6nMUtaoHXBtVDezrGJ8kFYMOlmM69DOzUyz0YXsoNthYHCkBEGnruW-fCI1GFASuhdSiN0eIgP3pAdGv1AN-eKj3gPejD/s320/usd.png" width="320" /></a></div>This is something to watch out for here. USD could fall to 76, but is equally likely to bounce off oversold RSI @ the 30 level. Look at that compelling head-and-shoulders in the middle there. That is so perfect that the dollar almost "has" to complete the move to 76. This is slightly confirmed by the right-hand dip in the Ichimoku cloud, but the cloud itself hasn't broken down, so that's a minor point. So, a day or two or three of grace is possible, but then the USD reascends to 78.50 by Feb. 22. Real resistance possible @ 79.50 circa March 1, and then it could go either way. One scenario, MENA situation gets out of hand with mega-protests on Friday; and that could signal the start of the real dollar rally. If it hasn't already begun by then.Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-35402250836508220002011-01-31T20:34:00.000-08:002011-01-31T20:39:10.166-08:00Best to Work For (but investors should like them too)I was going post a piece on the out-performance history of the annual Fortune magazine<br />
<a href="http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/1.html" rel="external">"Best Companies to Work For</a>". Over a year ago, I randomly came across an independent quantitative study showing just such out-performance, and rather impressively. Well, now I don't have to fish around for that study, cuz Fortune has saved me the trouble to some extent, as you can see <a href="http://features.blogs.fortune.cnn.com/2011/01/27/investing-in-the-100-best-beats-the-market-hands-down/">here</a>. Should be good for a 5-minute trade by high-frequency traders!<br />
So, the upside is you get to contribute to some, perhaps small, marginal increment in the world's happiness level (i.e., among these lucky workers).....and at the same time make some money. Not a bad deal. On this list I especially like Intel<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbHsPLFKxvKB7I0173wR4b_-vGV_-zQS11UR2vbkLZky3PVfFOUJSl-UqRSflj29SwALpOezjI6Z8ofl3tYnzxJ1pyG5CJF8OrXYiU8jI8UBgo93k0HaAAzLZRMAyPInTTeN2lVnVLjZtC/s1600/intc.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbHsPLFKxvKB7I0173wR4b_-vGV_-zQS11UR2vbkLZky3PVfFOUJSl-UqRSflj29SwALpOezjI6Z8ofl3tYnzxJ1pyG5CJF8OrXYiU8jI8UBgo93k0HaAAzLZRMAyPInTTeN2lVnVLjZtC/s320/intc.png" width="320" /></a></div><br />
and Aeropostale<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqD4jLZqryETzQxKF9BKU-GUn0DN-7XMMIM6CD4CFXddBiZG0z0Ynhqu_n-Yfnhdxwdv1ZrVVVVWsCZxq0R2Rv9HgWXAP418TW6-bnV2dSx4MvkSCe7YmE_A3p_7ms5GRfeXqIZiptnOHF/s1600/aro.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqD4jLZqryETzQxKF9BKU-GUn0DN-7XMMIM6CD4CFXddBiZG0z0Ynhqu_n-Yfnhdxwdv1ZrVVVVWsCZxq0R2Rv9HgWXAP418TW6-bnV2dSx4MvkSCe7YmE_A3p_7ms5GRfeXqIZiptnOHF/s320/aro.png" width="320" /></a></div>Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-15638500858246969562010-11-29T09:37:00.000-08:002010-11-29T09:37:30.270-08:00The Spanish Prisoner<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfTUBoQcLtJs5UcG_0-arFS5uc8gD-mMvntAJzGQyGzbRF3FG2iLlXQvG2YfO4OzzATqhBKAuowkObjCcJUQDGOgT0nM1a0aY2mlM43egPyapmfvXLmgXPSCmU9wVDXQO1-nqnHM7DuYxJ/s1600/spanish-prisoner.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="212" ox="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfTUBoQcLtJs5UcG_0-arFS5uc8gD-mMvntAJzGQyGzbRF3FG2iLlXQvG2YfO4OzzATqhBKAuowkObjCcJUQDGOgT0nM1a0aY2mlM43egPyapmfvXLmgXPSCmU9wVDXQO1-nqnHM7DuYxJ/s320/spanish-prisoner.jpg" width="320" /></a></div>Succint Krugman <a href="http://www.nytimes.com/2010/11/29/opinion/29krugman.html?src=me&ref=general">piece</a>:<br />
<br />
<em><strong>The bad news about America is that a powerful political faction is trying to shackle the Federal Reserve, in effect removing the one big advantage we have over the suffering Spaniards. Republican attacks on the Fed — demands that it stop trying to promote economic recovery and focus instead on keeping the dollar strong and fighting the imaginary risks of inflation — amount to a demand that we voluntarily put ourselves in the Spanish prison.</strong></em>Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-88174245151603903512010-11-22T11:02:00.000-08:002010-11-22T11:02:44.724-08:00Long Interview w. Alice Shroeder [Buffett biographer]Here's a bit---the whole thing's <a href="http://seekingalpha.com/article/235292-behind-the-scenes-with-buffetts-biographer-alice-schroeder">here</a>:<br />
<br />
<em>I’ve heard some people say, “He’s in his heyday.” The market has certainly worked in his favor. But the gigantic anchor of capital that Berkshire has to invest means that no environment can be as good for him as the past. If people are following his investments, they should consider how limited his universe of possible ideas is compared to their own.</em><br />
<br />
<em>He is being forced to accept lower returns than smaller investors simply by virtue of his market cap limitation. He’s given fair warning of this often enough, so it shouldn’t surprise us now. He’s often spoken nostalgically of how much better he could do running a smaller portfolio.</em><br />
<br />
<em>Therefore, let’s invert the situation. If you are running a smaller portfolio, the stocks he owns are interesting to consider, but not necessarily the first place I would look for investment ideas.</em>Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-52340784452989869732010-11-17T05:04:00.000-08:002010-11-17T05:04:40.480-08:00Li Lu on Charlie Munger<div class="separator" style="clear: both; text-align: center;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1f5twwriWsYc5ekFsLFj2NhRd2vgNaY3vqFonJSd8wa4-GkhD1fhOTT1K8TJKMVXlbdQUodyqBG1QowBh4NYDge7_kMVEPZaa59MFY4BIO72CSBjzYtM7fkCmwSNzP-Q4RivMiDnobOeo/s1600/marketing101.jpg" /></div>A beautiful lady once insisted that Charlie use one word to sum up the source of his success, Charlie said it was being<a href="http://www.blogger.com/goog_281612288"> “rational.”</a><a href="http://www.magicformulapro.com/2010/07/05/li-lu-article-on-charlie-munger/"> </a>However, he has a more stringent definition of rationality. It is this kind of “rationality” that grants him the sensitive and unique vision and insight. Even in a completely unfamiliar territory, with just one look he could see through to the essence of things. Buffett calls this characteristic of Charlie the “two-minute effect” — he said Charlie can, in the shortest time possible, unravel the nature of a complex business and understand it better than anyone else can.Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-89129370064941447762010-11-04T11:42:00.000-07:002010-11-04T11:42:39.740-07:00Sector Bests: Materials<div class="MsoNormal" style="margin: 0in 0in 0pt;">In Sector Bests I will present the top 5 companies in various industries according to their ability to maintain and enhance their <a href="http://www.ecosystemvaluation.org/1-01.htm">economic value</a>. I’m starting here with the materials sector. No attempt has been made to refer to P/E, P/S or the like, because, given a long-enough holding period, such distinctions are likely to become less significant.</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;">CVVT</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="color: black; font-family: Arial; font-size: 10pt;">China Valves Technology, Inc. is engaged in the development, manufacture, and sale of metal valves. </span>CVVT<span style="color: black; font-family: Arial; font-size: 10pt;"> manufactures and sells over 800 models with more than 10,000 specifications of low, medium and high-pressure valves. The Company sells its products to customers in the electricity, petroleum, chemical, water, gas and metal industries throughout </span><country-region><place><span style="color: black; font-family: Arial; font-size: 10pt;">China</span></place></country-region><span style="color: black; font-family: Arial; font-size: 10pt;">. Return on Equity = 31.79.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;">BVN</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="color: black; font-family: Arial; font-size: 10pt;">Compania de Minas Buenaventura S.A.A. is a precious metals company engaged in the exploration, mining and processing of gold, silver and other metals in </span><country-region><place><span style="color: black; font-family: Arial; font-size: 10pt;">Peru</span></place></country-region><span style="color: black; font-family: Arial; font-size: 10pt;">. Return on Equity = 30.09.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;">NEU</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="color: black; font-family: Arial; font-size: 10pt;">NewMarket Corporation is a holding company of Afton Chemical Corporation (</span><place><span style="color: black; font-family: Arial; font-size: 10pt;">Afton</span></place><span style="color: black; font-family: Arial; font-size: 10pt;">), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). The Company has two primary segments: petroleum additives and real estate development. Return on Equity = 39.05.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;">PKX</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="color: black; font-family: Arial; font-size: 10pt;">POSCO is an integrated steel producer in </span><country-region><place><span style="color: black; font-family: Arial; font-size: 10pt;">Korea</span></place></country-region><span style="color: black; font-family: Arial; font-size: 10pt;">. POSCO operates in four segments: steel, engineering and construction, trading, and others. The steel segment includes production of steel products and sale of such products. The engineering and construction segment includes planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings. The trading segment consists of exporting and importing a range of steel products. The others segment includes power generation, liquefied natural gas production, logistics and magnesium coil and sheet production. Return on Equity = 23.07.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt;">SVM</div><div class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="color: black; font-family: Arial; font-size: 10pt;">Silvercorp Metals Inc. is a silver producing company. During the fiscal year ended </span><date day="31" month="3" year="2010"><span style="color: black; font-family: Arial; font-size: 10pt;">March 31, 2010</span></date><span style="color: black; font-family: Arial; font-size: 10pt;">, Silvercorp mined 406,754 tons of ore. In fiscal 2010, the Company produced and sold 4.6 million ounces of silver, 62.4 million pounds of lead and 14.7 million pounds of zinc. The Company’s properties include Ying Mine (77.5%), HPG Property (80%), TLP Mine (77.5%), LM Mine (80%), Nabao Project (82%), GC Project (95%) and Silvertip Project (100%). The GC Project is a pre-development stage silver-lead-zinc project in </span><place><city><span style="color: black; font-family: Arial; font-size: 10pt;">Guangdong Province</span></city><span style="color: black; font-family: Arial; font-size: 10pt;">, </span><country-region><span style="color: black; font-family: Arial; font-size: 10pt;">China</span></country-region></place><span style="color: black; font-family: Arial; font-size: 10pt;">. In February 2010, the Company completed the acquisition of a 100% interest in the Silvertip silver-lead-zinc project covering 216 square kilometers in northern </span><state><place><span style="color: black; font-family: Arial; font-size: 10pt;">British Columbia</span></place></state><span style="color: black; font-family: Arial; font-size: 10pt;">, </span><country-region><place><span style="color: black; font-family: Arial; font-size: 10pt;">Canada</span></place></country-region><span style="color: black; font-family: Arial; font-size: 10pt;">. Return on Equity = 23.26.</span></div>Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-18170335117994589332010-11-03T07:50:00.000-07:002010-11-03T07:50:14.144-07:00excellent compilation of papers by Benjamin Graham"<a href="http://valuehuntr.com/2010/10/31/common-sense-investing-the-papers-of-benjamin-graham/"><span style="color: #346086;">Valuehuntr</span></a> just posted up an excellent compilation of papers by Benjamin Graham from 1930 to 1974. Graham, the author of pioneer value investing books such as <span style="color: #346086;">Security Analysis</span> and <span style="color: #346086;">The Intelligent Investor</span>, also penned numerous papers that were not included in his books.<br />
<br />
The piece starts with a brilliant comparison of investment versus speculation. Graham writes that, "It is indeed ironical (though not surprising) that common-stock purchases of all kinds were quite generally regarded as highly speculative or risky at a time when they were selling on a most attractive basis, and due soon to begin their greatest advance in history; conversely the very fact they had advanced to what were undoubtedly dangerous levels as judged by past experience later transformed them into 'investments' and the entire stock-buying public into 'investors'."<br />
<br />
It's fascinating how early on Graham was able to pick up on a trend that still entangles investors today. The general investing public seems most prone to buy when they're comfortable with the markets, buying 'high' when instead they should be examining their complacency and doing the exact opposite.<br />
<br />
Equally disappointing, Graham observes, was the inability for many investors to purchase stocks when they were trading at the largest discounts. This comes down to human emotion interfering as greed and fear get in the way of rational decision making. The most intriguing thing about all this is that behavior Graham identified decades ago still holds true today."<br />
<br />
---<a href="http://www.marketfolly.com/2010/11/collection-of-benjamin-grahams-papers.html">MarketFolly</a>Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-88694679716169999122010-10-26T10:44:00.000-07:002010-10-26T10:44:30.763-07:00Random Roger on Risk and VolatilityRoger has an interesting thought piece <a href="http://randomroger.blogspot.com/2010/10/risk-versus-volatility.html">here</a> on risk concepts alluded to in my last post.Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-62979445231562838012010-10-25T12:03:00.000-07:002010-10-25T12:03:48.367-07:007 Low Debt to GDP CountriesCountry, followed by % of debt to annual GDP.<br />
<br />
Chile 9.0<br />
Australia 18.6<br />
Peru 26.1<br />
New Zealand 29.3<br />
Indonesia 29.8<br />
Taiwan 34.6<br />
South Africa 35.7<br />
<br />
There are countries with lower debt/GDP, but in some cases there seems to be some political risk present, in others there just isn't much to invest in (e.g., Luxembourg). Could this be a first screen for international investing? Money flows where it has a better chance of being well treated.Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0tag:blogger.com,1999:blog-905121665443535795.post-67724804506444139892010-10-12T09:40:00.000-07:002010-11-04T12:27:55.070-07:00And they're off..............Hi,<br />
<br />
Welcome to Returning Capital. In this blog I intend to focus on the investment theme of Return on Invested Capital (ROIC) and anything else even tangentially related. I will try to provide relevant links and discuss ROIC along with related topics. I'll try to keep this updated and as fun as possible!Mr. Dhttp://www.blogger.com/profile/17290940766330786473noreply@blogger.com0