I was reading through my latest copy of Outstanding Investor Digest yesterday. If you aren't familiar with OID, it's an excellent if quirky periodical that presents a hodge-podge of speeches, letters, articles, presentation, interviews, etc by/of great value investors.
It's quirky because it comes when it comes. I swear there was nearly a year between my last two issues - at least it seemed like it. That said, it is always chock full of interesting stuff. I guess they know they can get away with this "relaxed" delivery schedule because they know value investors are willing to wait patiently for good things to happen...
The recent issue contains a transcript of this year's Clipper Fund annual meeting. The fund is co-managed by Chris Davis, who also runs the very successful Davis NY Venture Fund (they were named Domestic Equity Manager of the Year by Morningstar in 2005). Chris is the son of legendary investor Shelby Davis, and ably took over the reins of the fund from his dad in 1997. However, he has had a tough time since he took over the Clipper fund at the end of 2005, underperforming the market to date.
All that aside, Chris had this to say at Clipper's meeting (in mid-March):
"You know, my grandfather used to say that the four most expensive words in investing are : "This time it's different". And usually you hear those words at market tops. You hear them as a justification for why we're on a plateau of permanent prosperity, and why things won't collapse."
Yup - this is pretty well known stuff, "TTID" was trotted out in 1999 and again for the real estate fiasco. But here is the important part:
"But you also hear them near bottoms. You hear." No, this time is different. This time it's going to collapse. This one is much worse.""
This is key - you rarely hear talk of "This time it's different" associated with pessimism. But I am hearing it every day now. Lots of projections of global depression, doom, doom, and yet even more doom. This time, WE ARE ALL DOOMED!
A revered value investor, Sir John Templeton. unfortunately passed away yesterday at age 95. He was a legend for providing superior returns in his Templeton funds since the mid-1950s. He was fond of saying that one should invest at "times of maximum pessimism". Sir John famously borrowed money in 1939 after the start of WWII to buy 104 stocks, all selling for
It's quirky because it comes when it comes. I swear there was nearly a year between my last two issues - at least it seemed like it. That said, it is always chock full of interesting stuff. I guess they know they can get away with this "relaxed" delivery schedule because they know value investors are willing to wait patiently for good things to happen...
The recent issue contains a transcript of this year's Clipper Fund annual meeting. The fund is co-managed by Chris Davis, who also runs the very successful Davis NY Venture Fund (they were named Domestic Equity Manager of the Year by Morningstar in 2005). Chris is the son of legendary investor Shelby Davis, and ably took over the reins of the fund from his dad in 1997. However, he has had a tough time since he took over the Clipper fund at the end of 2005, underperforming the market to date.
All that aside, Chris had this to say at Clipper's meeting (in mid-March):
"You know, my grandfather used to say that the four most expensive words in investing are : "This time it's different". And usually you hear those words at market tops. You hear them as a justification for why we're on a plateau of permanent prosperity, and why things won't collapse."
Yup - this is pretty well known stuff, "TTID" was trotted out in 1999 and again for the real estate fiasco. But here is the important part:
"But you also hear them near bottoms. You hear." No, this time is different. This time it's going to collapse. This one is much worse.""
This is key - you rarely hear talk of "This time it's different" associated with pessimism. But I am hearing it every day now. Lots of projections of global depression, doom, doom, and yet even more doom. This time, WE ARE ALL DOOMED!
A revered value investor, Sir John Templeton. unfortunately passed away yesterday at age 95. He was a legend for providing superior returns in his Templeton funds since the mid-1950s. He was fond of saying that one should invest at "times of maximum pessimism". Sir John famously borrowed money in 1939 after the start of WWII to buy 104 stocks, all selling for
