Rational Walk is the only newsletter that I read among the many I receive about investing. I found almost a waste of time all the rest. Too much noise. Many talk about money, finance and other interesting topics but they are not about investing.
Rational is exhaustive, accurate, drops some knowledge, and even if you are a full time Buffett student like me, you always find something new, interesting and well written. Topics and books mentioned that are not about investing are usually a good source of inspiration, for investors and not.
On the other hand, sometimes I find so called “experts” or Value investors misquoting and also misunderstanding some basic traits of investing.
Example: There’s no such thing as Value Versus Growth. But it seems that so many professionals liked the distinction that the illness affected also some “intelligent investors”. And so they talk about Value stocks VS Growth stocks and Value Investing VS Growth Investing.
Buffett made it so clear during the 2001 Shareholders meeting. “They are part of the same equation”. And if you read Graham very well it is clear that there can’t be such contrast or opposition.
Growth is part of the Value you want to asses. When you look for Value you are taking into consideration how much growth can be inside your investment that is so a Value decision.
A business can grow and have more revenues in a way that causes less profitability or losing money in the future. And that’s not investing. Sometimes there’s good value even without the business growing or expanding so much. Because it will constantly deliver in the future more capital than the one you are laying out today to buy it. And that is investing.
But at the end it is all part of a Value decision, if you are an investor. If you are a stock speculator you can talk about “growth opportunities”, “buying momentum” and you can trade “growth stocks” or whatever. Simply you are not investing. Like if you buy on margin: you are not an investor.
marco@blikebuffett.com