Dividend Tree Potpourri – August 22, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

My Article in Blogosphere

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

What is Buffett’s Ideology?

In this post, I am trying to take a contrarian viewpoint, and hopefully initiate a debate. I am asking few questions:

  • Is Buffett ideology more than mere value investing?
  • Are we individual investors falling into the value trap?
  • Do we individual investors fail to realize or fail to put Buffett’s ideology in proper context?

First: Value investing is all about attempting to estimate value of a given business, and hence the stock price. Most of you will agree that estimating value is a very subjective process. With the same set of upfront information, seasoned professionals and many of us will come up with different value for the same business. If value investing was that simple and easy to determine, won’t all value investor have excellent portfolios? So does value investing also comes with gut feeling about future business prospects? What about asset allocation and diversification? When I looked into BRK’s portfolio in 3Q2008, it did not seem to follow any boiler plate formula or general guidelines of asset allocation or diversification. Does it mean Buffett’s ideology is more than mere value investing? continue reading rest of the article….

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