Guest Post: Barel Karsan ~ market folly

Friday, June 5, 2009

Guest Post: Barel Karsan

The following is a guest post by Saj Karsan, who regularly writes for Barel Karsan, a site dedicated to understanding the principles of value investing, and applying these principles to finding and discussing current value investments.

Over time, value investors far outperform the market. In a terrific article by Warren Buffett, he outlines why this outperformance is not likely to be due to chance or luck. Many of the fund managers that we read about here on Market Folly are value investors, and this site does a great service in letting us know what these managers are buying and selling. At Barel Karsan, we focus on why a manager is buying or selling, so that we can apply these principles to other stocks in the market.

For example, consider Seth Klarman, whose stellar returns over the last few decades have made him a fortune. By understanding how he makes his purchase decisions, we put ourselves in a position to improve on our own abilities as investors. We do this by summarizing the key points from his book, (as well as the key points from the books of other successful value investors) and by applying these principles to current investment opportunities.

Can these principles be learned and applied? Absolutely. We have a list of several recent examples (even over the last few years, during a period in which the market was sizzling!) demonstrating how certain stocks were undervalued, and how value was eventually recognized, with excess returns accruing to the astute investor who spotted the original mispricing.

If the subject matter of this article interests you, consider subscribing to the RSS feed at Barel Karsan.

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