Concentrated Investing : Strategies of the World's Greatest Concentrated Value Investors

**Discover the secrets of the world's top concentrated value investors**__Concentrated Investing: Strategies of the World's Greatest Concentrated Value Investors__ chronicles the virtually unknown—but wildly successful—value investors who have regularly and spectacularly blown away the results of even the world's top fund managers. Sharing the insights of these top value investors, expert authors Allen Benello, Michael van Biema, and Tobias Carlisle unveil the strategies that make concentrated value investing incredibly profitable, while at the same time showing how to mitigate risk over time. Highlighting the history and approaches of four top value investors, the authors tell the fascinating story of the investors who dare to tread where few others have, and the wildly-successful track records that have resulted. Turning the notion of diversification on its head, concentrated value investors pick a small group of undervalued stocks and hold onto them through even the lean years. The approach has been championed by Warren Buffett, the best known value investor of our time, but a small group of lesser-known investors has also used this approach to achieve outstanding returns. * Discover the success of Lou Simpson, a former GEICO investment manager and eventual successor to Warren Buffett at Berkshire Hathaway * Read about Kristian Siem, described as "Norway's Warren Buffett," and the success he has had at Siem Industries __Concentrated Investing__ will quickly have you re-thinking the conventional wisdom related to diversification and learning from the top concentrated value investors the world has never heard of. "Discover the secrets of the world's top concentrated value investors Concentrated Investing: Strategies of the World's Greatest Concentrated Value Investors chronicles the virtually unknown--but wildly successful--value investors who have regularly and spectacularly blown away the results of even the world's top fund managers. Sharing the insights of these top value investors, expert authors Allen Benello, Michael van Biema, and Toby Carlisle unveil the strategies that make concentrated value investing incredibly profitable, while at the same time showing how to mitigate risk over time. Highlighting the history and approaches of four top value investors, the authors tell the fascinating story of the investors who dare to tread where few others have, and the wildly-successful track records that have resulted. Turning the notion of diversification on its head, concentrated value investors pick a small group of undervalued stocks and hold onto them through even the lean years. The approach has been championed by Warren Buffett, the best known value investor of our time, but a small group of lesser-known investors has also used this approach to achieve outstanding returns. Discover the success of Lou Simpson, a former GEICO investment manager and eventual successor to Warren Buffett at Berkshire Hathaway Read about Kristian Siem, described as "Norway's Warren Buffett," and the success he has had at Siem Industries Concentrated Investing will quickly have you re-thinking the conventional wisdom related to diversification and learning from the top concentrated value investors the world has never heard of"-- "Lou Simpson, who managed GEICO's investment portfolio from 1970 to 2011, was chosen by Warren Buffett to succeed him at the helm of Berkshire Hathaway's investment operations until he retired a couple of years ago at the age of 76. Mr. Simpson's track record at GEICO easily qualifies him for the Investing Hall of Fame, yet he has appeared in only a handful of brief newspaper articles over the years. Kristian Siem was once described in Barron's as Norway Warren Buffett. Virtually unknown in the U.S. except to a very small handful of investors, Siem has growth the book value of his closely held holding company, Siem Industries, at 22% annually over the past 25 years by sticking faithfully to two key principles: Always invest in your field of competence, and concentrate your investments. Siem has conducted his business dealings according to a powerful yet simple motto: Arrogance is always a handicap; humility is a virtue. Leucadia National Corporationhas been called the mini-Berkshire Hathaway. Originally a troubled finance company called Talcott Corp., Leucadia was taken over in XX by Ian Cumming and Joe Steinberg, who together achieved a XX% growth in a book value per share to date, with opportunistic investments ranging from Insurance to Real Estate to Casinos. Leucadia has a cult following among value investors, but there has never been a definitive history of the company and of Cumming/Steinberg's record"-- CONCENTRATED INVESTING 3 Contents 9 Preface 11 Acknowledgments 15 Introduction: Concentrated Investing 19 Notes 22 Chapter 1 Lou Simpson: The Disciplined Investor: A Portrait of Concentration 23 “Unstoppable” GEICO 24 An Emerging Value Investor 27 Big, Concentrated Bets 29 Simpson’s Results at GEICO 33 Simpson, The Value Investor 36 Conservative, Concentrated 43 Notes 47 Chapter 2 John Maynard Keynes: Investor Philosopher: The Economics of Concentration 53 Celebrity Economist 57 Irrational Markets 58 The Investor 62 Keynesian Intrinsic Value 64 An Examination of Keynes’s Returns 70 A Study in Concentration 75 Notes 83 Chapter 3 Kelly, Shannon, and Thorp: Mathematical Investors: Concentration Quantified 89 Claude Shannon and Ed Thorp 90 Edward Thorp and Applied Kelly Theory 101 Notes 105 Chapter 4 Warren Buffett: The Kelly-Betting Value Investor: Portfolio Concentration for Value Investors 107 Closet Indexers 112 Kelly Bettin’ Value Investors 122 Notes 124 Chapter 5 Charlie Munger: Concentration’s Muse: Quality without Compromise 127 Blue Chip Stamps and See’s Candies 131 The Buffalo News 136 On Concentration 138 Notes 146 Chapter 6 Kristian Siem: The Industrialist: The Importance of Permanent Capital to the Long-Term Investor 149 The Jack-Up Rig Project 153 Diamond M Dragon and Common Brothers 156 Back to the Drilling Business 161 Norwegian Cruise Line 164 DSND Subsea 169 Siem on Valuation 171 Notes 175 Chapter 7 Grinnell College: The School of Concentration: Concentration and Long-Term Investing for Endowment 177 Grinnell under Gordon 180 The Modern Endowment 190 Notes 191 Chapter 8 Glenn Greenberg: The Iconoclast: Simple, Common Sense Research, and Tennis Shoes 195 The Family Business 198 Becoming a Money Mis-Manager 199 Arthur Ross’s Tennis Shoes 202 Greenberg’s Theory of Value 204 Concentration and Breakfast with Buffett 212 Notes 217 Chapter 9 Conclusion: The Concentrated Investor’s Temperament 221 Temperament 222 Permanent Capital 229 Finding Targets 232 Notes 236 About the Authors 239 Index 241 EULA 251

Discover the secrets of the world's top concentrated value investors

Concentrated Investing: Strategies of the World's Greatest Concentrated Value Investors chronicles the virtually unknown—but wildly successful—value investors who have regularly and spectacularly blown away the results of even the world's top fund managers. Sharing the insights of these top value investors, expert authors Allen Benello, Michael van Biema, and Tobias Carlisle unveil the strategies that make concentrated value investing incredibly profitable, while at the same time showing how to mitigate risk over time. Highlighting the history and approaches of four top value investors, the authors tell the fascinating story of the investors who dare to tread where few others have, and the wildly-successful track records that have resulted.

Turning the notion of diversification on its head, concentrated value investors pick a small group of undervalued stocks and hold onto them through even the lean years. The approach has been championed by Warren Buffett, the best known value investor of our time, but a small group of lesser-known investors has also used this approach to achieve outstanding returns.

• Discover the success of Lou Simpson, a former GEICO investment manager and eventual successor to Warren Buffett at Berkshire Hathaway
• Read about Kristian Siem, described as "Norway's Warren Buffett," and the success he has had at Siem Industries

Concentrated Investing will quickly have you re-thinking the conventional wisdom related to diversification and learning from the top concentrated value investors the world has never heard of.

Discover the secrets of the world's top concentrated value investors Concentrated Investing: Strategies of the World's Greatest Concentrated Value Investors chronicles the virtually unknown—but wildly successful—value investors who have regularly and spectacularly blown away the results of even the world's top fund managers. Sharing the insights of these top value investors, expert authors Allen Benello, Michael van Biema, and Tobias Carlisle unveil the strategies that make concentrated value investing incredibly profitable, while at the same time showing how to mitigate risk over time. Highlighting the history and approaches of four top value investors, the authors tell the fascinating story of the investors who dare to tread where few others have, and the wildly-successful track records that have resulted. Turning the notion of diversification on its head, concentrated value investors pick a small group of undervalued stocks and hold onto them through even the lean years. The approach has been championed by Warren Buffett, the best known value investor of our time, but a small group of lesser-known investors has also used this approach to achieve outstanding returns. Discover the success of Lou Simpson, a former GEICO investment manager and eventual successor to Warren Buffett at Berkshire Hathaway Read about Kristian Siem, described as "Norway's Warren Buffett," and the success he has had at Siem Industries Concentrated Investing will quickly have you re-thinking the conventional wisdom related to diversification and learning from the top concentrated value investors the world has never heard of. "Lou Simpson, who managed GEICO's investment portfolio from 1970 to 2011, was chosen by Warren Buffett to succeed him at the helm of Berkshire Hathaway's investment operations until he retired a couple of years ago at the age of 76. Mr. Simpson's track record at GEICO easily qualifies him for the Investing Hall of Fame, yet he has appeared in only a handful of brief newspaper articles over the years. Kristian Siem was once described in Barron's as Norway Warren Buffett. Virtually unknown in the U.S. except to a very small handful of investors, Siem has growth the book value of his closely held holding company, Siem Industries, at 22% annually over the past 25 years by sticking faithfully to two key principles: Always invest in your field of competence, and concentrate your investments. Siem has conducted his business dealings according to a powerful yet simple motto: Arrogance is always a handicap; humility is a virtue. Leucadia National Corporationhas been called the mini-Berkshire Hathaway. Originally a troubled finance company called Talcott Corp., Leucadia was taken over in XX by Ian Cumming and Joe Steinberg, who together achieved a XX% growth in a book value per share to date, with opportunistic investments ranging from Insurance to Real Estate to Casinos. Leucadia has a cult following among value investors, but there has never been a definitive history of the company and of Cumming/Steinberg's record"-- Provided by publisher Machine generated contents note: Preface Acknowledgments Chapter 1 Lou Simpson: The Disciplined Investor A Portrait of Concentration Chapter 2 John Maynard Keynes: Investor Philosopher The Economics of Concentration Chapter 3 Kelly, Shannon and Thorp: Mathematical Investors Concentration Quantified Chapter 4 Warren Buffett: The Kelly-Betting Value Investor Portfolio Concentration for Value Investors Chapter 5 Charlie Munger: Concentration's Muse Quality without Compromise Chapter 6 Kristian Siem: The Industrialist The Importance of Permanent Capital to the Long-Term Investor Chapter 7 Grinnell College: The School of Concentration Concentration, and Long-Term Investing for Endowment Chapter 8 Glenn Greenberg: The Iconoclast Simple, Common Sense Research, And Tennis Shoes About the Authors Index.