Author: Saj Karsan

H Paulin (PAP.A) trades at a discount to its net current asset value, meaning its current assets minus all its liabilities equal more than its market cap. This was a favourite screening tool for Ben Graham, long...

In this the final chapter, a discussion takes place about whether management should give earnings guidance. Buffett’s position on this matter is made clear. He believes that when managers give quarterly guidance (i.e. tell...

The author goes on a full scale attack of Buffett’s position on taxes.To set the background, Buffett believes the rich should pay a higher percentage of their income in taxes. He argues this because they can afford it,...

The number one rule of value investing is: Don’t Lose Money.While nobody can predict the future with any level of certainty, a primary concern for every value investment is the downside risk of the business under...

In a previous post, we discussed the potential pitfalls of investing in companies with poor corporate governance structures. But how can an investor protect himself? There are two basic ways. First of all, the investor can...

As a manufacturer and distributor of lumber and hardwood flooring, Goodfellow (GDL) is currently in a tough industry. The collapse of the US housing market has drastically reduced demand for products in this industry, and...

Today’s investor is encouraged to diversify his portfolio not only by industry but also by geography. But when comparing companies across international boundaries, investors must be cognizant of the existence of varied...

Rackable Systems (RACK) provides computer servers and storage devices for use in data centres. The company has $170 million worth of cash on hand versus no debt, yet it trades on the Nasdaq for just $120 million. The company has...

This chapter is devoted to a discussion of stock options. The author critiques some of Buffett’s takes on options, while applauding some of his suggestions. While Janjigian doesn’t come right out and say it, it...

The public often views Buffett as pro-shareholder and a fan of good corporate governance. But Janjigian points out that Berkshire falls short on several fronts when it comes to corporate governance.For example, governance...