Warren Boroson - J.K. Lasser's Pick Stocks Like Warren Buffett-Wiley (2001)

["290 INDEX Mergers, 194, 215 information resources, 47\u201348 Messy portfolios, 103 no-load, 218 Microcaps, 223 recommendations for, 50\u201351 Microsoft, 76, 144, 200, 234 taxation, 190 Mid-cap(s), generally: Mutual Series Fund, 209, 211, 214, 227, companies, 43, 182 229 growth index funds, 49 Mutual Shares, 174, 217 stocks, 230 value funds, 4, 49 Nasdaq, 99, 193 Miller, Bill, 153, 205 National Indemnity, 94\u201395, 252 Millionaires, investment strategies of, 101 Nebraska Furniture Mart, 94 Mistakes: Neff, John, 9 common, see Common mistakes Nestl\u00e9, 226 learning from, 54, 121\u2013125 Net current asset value, 27 psychological, 77, 127, 278 Neuberger Berman, 80 Modern Portfolio Theory, 252 New Economy, 154 Momentum investing, 99\u2013100, 112, 151, New Generation, 109 Newman, Jerome, 25 163, 199\u2013200, 231, 233\u2013234 New product development, 36 Money, separating into categories, News, market reaction to, 38, 105 Newsletters, see speci\ufb01c newsletters 129\u2013130 Money Masters of Our Time (Train), 11, as information resource, 2, 64 for value investors, 106\u2013107 239 Newspapers, investor reaction to, 105 Montgomery Ward, 23 New York Stock Exchange, 41 Morningstar: Niche companies, 110, 148 Nifty \ufb01fty stocks, 41 as information resource, 136, 156, No-load funds, 211, 218 158, 161, 168, 172, 189, 195, 197, Nutty Investor Theory, 128 206\u2013207, 226, 230 Oakmark Select, 137, 174 Mutual Funds, 2, 47\u201348, 50 Odean, Terrance, 99 Mr. Market metaphor, 26\u201327 Oelschlager, James D., 50 MSN MoneyCentral Investor, 64 Oil sector, 154 Multinationals, 226 Old Economy, 194\u2013195 Munger, Charles: Olstein, Robert A., 233\u2013234 Omaha Club, 20 Buffett, Warren, in\ufb02uence on, 154, 262 One-Click Scorecard, 143 buy-and-hold strategy, 110 Online trading, 99\u2013100 description of, 269 Operating earnings, 62 ethical investing, 119 Optimism, impact of, 49, 77 investment style, 34, 78, 158, 202, Option pricing, 252 Options, 216 246\u2013247, 262 Ordinary investors, guidelines for, 218, 232 salary, 93 Out-of-favor stocks, 47, 221\u2013222, 231. on technology stocks, 71, 272 value investing, 111\u2013112 See also Value stocks Murphy, Thomas S., 95, 164 Overcon\ufb01dence, impact of, 103, 131\u2013132 Murray, Roger, 232 Overdiversi\ufb01cation, 54, 135\u2013139 Mutual Beacon, 211\u2013212 Overpriced stock, 40, 102, 193, 226 Mutual Discovery, 210, 215 Overreaction, impact of, 129 Mutual funds, see speci\ufb01c funds Overvalued businesses, 111 in balanced portfolio, 3\u20136 Overvalued market, 22 blend, 45 closed-end, 23 fees, 190\u2013191, 218, 226 growth compared with value, 47\u201351 historical perspective, 25","INDEX 291 Overvalued stocks\/funds, 77, 144, 225, Procter & Gamble, 191\u2013192 233\u2013234 Professional advice: Owens, Ed, 131 Baughman, Bruce, 227\u2013229 Owens-Corning, 231 Browne, Christopher, 161\u2013168 Owner earnings, 143 Eveillard, Jean-Marie, 224\u2013226 Ferenbach, Colin C., 230\u2013232 Painful memories, avoidance of, 130 Gabelli, Mario, 232\u2013233 Panic of 1907, 24 Gipson, James, 205\u2013207 Park Place Entertainment, 106 Gunn, John, 234\u2013235 Parsow, Sol, 74 Hagstrom, Robert, 153\u2013158 Passive investors, 174 Lippman, William, 227\u2013229 Passive management, 15 Olstein, Robert A., 233\u2013234 Pathetic fallacy, 129 Price, Michael, 209\u2013219 Patience, importance of, 173\u2013174, Royce, Charles, 221\u2013224 Ruane, William J., 145\u2013151 192\u2013193, 222, 232, 239 Schloss, Walter, 177\u2013183 PBGH Large Cap 20, 137 Simpson, Louis A., 157\u2013160 Pennsylvania Mutual, 222 Torray, Robert, 185\u2013196 Pension funds, 199 Walczak, Edwin D., 197\u2013203 Performance, signi\ufb01cance of, 136\u2013138. Whitman, Martin J., 171\u2013175 Professional money management, 99, See also speci\ufb01c funds Personalization, 129 149\u2013150, 194, 199 Peters, Elizabeth, 118\u2013119 Pro\ufb01t margin, 64, 143 P\ufb01zer, 130\u2013131 Prospectus, 218 Pharmaceutical industry, 163\u2013164, Psychological mistakes, 77, 127, 129\u2013133 166\u2013167, 201, 227, 272 Qualitative research: Philip Morris, 166, 206 Fisher\u2019s 15-point test, 36\u201339 Piermont, Barbara F., 108\u2013110 importance of, 54, 89, 141, 147, PIKs, 216 218\u2013219, 223, 237\u2013238, 253 Pilgrim funds, 228 Pioneer Fund, 275 Quasi-concentrated funds, 137\u2013138 Pittson Company, 106 Quicken.com, 3, 142, 153 Pope, Alan, 109 Quick-liquidation value, 27 Portfolio diversi\ufb01cation, 28, 42, 225. See Quinn, Peter, 207 also Asset allocation; Diversi\ufb01cation Recency, 127\u2013128 Posner, Brian, 130 Recession, 39 Preferred stock, 12, 122, 147 Redemptions, 222 Price, Michael: Reichardt, Carl, 95 Reinvested earnings, 143\u2013144 background, 214 Research, in-house, 217. See also on Ben Graham, 211 investment philosophy, 216\u2013217 Qualitative research investment strategy, 105, 214\u2013215 Return on equity (ROE), 62\u201364, 143, on successful investors, 217 when to sell, 218 150, 179, 202, 215, 227 Price-book ratio: Ringwalt, Jack, 94\u201395 low, 45, 154\u2013155, 164 Rising Dividend, 227 signi\ufb01cance of, 162\u2013163 Risk arbitrage, 210 in value stocks, generally, 46\u201347 Risk aversion, 26, 55\u201359, 253\u2013254 Price-earnings ratio: Rock-Tenn Company, 106\u2013107 low, 45, 154\u2013155, 164, 180, 230 Rosner, Benjamin, 94 signi\ufb01cance of, 27, 41, 112, 162\u2013163, Royal Dutch Petroleum, 219 Royce, Charles, 174, 221\u2013224, 228 174, 191, 223, 227 Private market value, 230\u2013231, 234","292 INDEX Royce Low Priced Stock Fund, 223 Sentiment, 54, 118 Royce Total Return, 223 Sequoia: R-squared, 5\u20136 Ruane, William J.: closed fund, 149 golden years, 150 career development, 148 performance, 2\u20134, 6, 20, 137, 146, 153, on index funds, 150 in\ufb02uences on, 147\u2013148 200, 217 investing strategies, 20, 145\u2013147 Shareholder: mistakes, 150 on Sequoia, 149\u2013150 psychology, 15\u201316 stock selection strategies, relations, 76, 141 value, 211 150\u2013151 Shareholders Management, 159 Rubbermaid, 201 Shaw Communications, 158 Ruhlin, Peggy, 12\u201313 Shaw Industries, 234 Runyon, Damon, 102 Short selling, 213, 264, 271 Siegel, Jeremy, 41 Sachs, Walter E., 23 Simpson, Louis A., 22, 157\u2013160 Sage of Omaha, 178, 202. See also Small-cap, generally: growth funds, 49 Buffett, Warren Edward portfolios, 113 Saliency, 128 stocks, 225\u2013226 Salomon, 21, 117 value funds, 49 Sanborn, Robert, 199 Smith, Adam, 116 Sandler, Michael, 206 SoGen funds, 224\u2013226 S&P 500, 5, 10, 14\u201315, 49, 77, 154, 158, Sondike, Larry, 210 Soros, George, 9, 11, 57 162, 166, 188\u2013189, 193, 197, 199, Spears, John D., 162, 165 206, 225, 229, 231 Speculation: Sauter, George, 98\u201399 bucketshops, 108 Savings and loans, 69\u201370 buy-and-hold strategy vs., 98\u201399 Schafer, David, 198 fast-growing companies, 112\u2013113 Schloss, Walter: frequent trades, 105\u2013107 Graham, Ben, relationship with, index funds compared with, 174 178\u2013179, 255\u2013264 professional advice, 108\u2013110 holdings, 263 reasons for, 28, 99\u2013104 on index funds, 180 technology stocks, 178 investment style, 26, 181\u2013183 Speculative companies, 43 mistakes, 180 Spinoffs, 215 stock selection factors, 178\u2013179 Standard & Poor\u2019s: Screaming bargains: 500 Stock Index, see S&P 500 characteristics of, 61\u201362 \u201cThe Outlook,\u201d 2, 76, 106 de\ufb01ned, 61 Stock Reports, 64 Scuttlebutt, as information resource, Standard & Poor\u2019s Industrial Average, 35\u201336, 38, 75, 248 Sector funds, 137\u2013138 177 Securities and Exchange Commission Status quo bias, 132 (SEC), 119, 179, 190 Steadman, Charles, 123 Security Analysis (Graham\/Dodd), 13, Steadman Oceanographic, 123 25, 27, 30, 147\u2013148 SteinRoe Young Investors, 50\u201351 Self-con\ufb01dence, importance of, 79\u201380, Stephens, Andrew C., 112 99, 123, 167, 239 Stock market crashes: Sell strategies, professional advice, 39\u201342, 193, 218, 231, 277 1987, 57, 224, 233, 276 Semiconductor stocks, 172\u2013173 1973\u20131974, 21, 78 1929, 24, 178, 276","INDEX 293 Stock options, 93 Torray, Robert: Stock tips, 81 background, 186 Stop-loss orders, 218 Buffett, compared with, 188 Striking event, 128 description of, 188 Strips, 196 on expenses, 190\u2013191 Strong Growth 20, 137 as growth investor, 189\u2013190, 194\u2013195 Successful investors, characteristics of, in\ufb02uence of, 185 investment philosophy, 194 217 investment strategy, 2, 4, 6, 190\u2013191 Successful organizations, components mistakes, 186\u2013188 opinions of, 195\u2013196 of, 37 on patience, 192\u2013193 Suez, 210\u2013211 success factors, 191\u2013192 Sunk cost fallacy, 132 when to sell, 193 Sun Microsystems, 234 Superior investors, traits of, 237\u2013238 Torray Fund: Swedroe, Larry E., 14 Morningstar on, 189 performance of, 50, 187 Taxation: Berkshire Hathaway and, 93 Total debt, 27 buy-and-hold strategy, 98, 104 Total Fina Elf, 230 index funds, 104, 166 Toyoda Automatic Loom Works, 175 mutual funds, generally, 190 Trading, generally: Tax shelters, 174 day, 57\u201358 Taylor, Don, 227 frequency of trades, 105, 108 TCA Cable, 158 hyperactivity and, 195 Technical analysis, 216 online, 99\u2013100 Technology stocks, see Dot.coms stop-loss orders, 218 Trading Madness, 149 avoidance of, 2, 14, 70\u201371, 154, Train, John, 11, 26 162\u2013163, 166\u2013167, 188, 269, 272 Truman, Harry, 17\u201318 TV programs, investor reaction to, contrarian investing and, 70\u201371, 80 cyclical, 103, 191 105 mutual fund investments, Tweedy, Browne: 137, 144 American Value, 2, 4, 6, 161, 166, popularity of, 103, 195 168\u2013169 speculation and, 178, 182 uncertainty factor, 201 Global Value, 2\u20133, 161, 166, 168 Telecoms, 166 investment strategies, 65, 67\u201368, Templeton, John, 56, 217 Ten-bagger, de\ufb01ned, 47 86\u201389, 174, 177, 200, 237 Tender offers, 215, 234 Tweedy, Forrest Berwind, 162 10-K reports, as information resource, 12b-1 fees, 218 76, 142 UAM Clipper Focus, 207 Terrana, Beth, 75 Underperforming stocks, 223 Textile industry, 181 Underpriced stocks, 78 Thaler, Richard, 129 Undervalued common stocks, 210 Thinking inside the box, 131 Undervalued companies, 172 Third Avenue Value, 2\u20133, 6, 173\u2013175, Undervalued stocks, 159 United Founders, 23 266\u2013267 Upgrades, 106, 130 Thomas, Bill, 174 U.S. Bancorp, 158 Tiffany & Company, 106 U.S. Steel, 23, 65 TJ Maxx, 277 U.S. Tobacco (UST), 61, 154 Top-down investing, 154 Utilities sector, 154 Top-of-the-head thinking, 130\u2013131","294 INDEX Valuation, 68 Wanger, Ralph, 221 Value companies, growth companies Warren Buffett Way, The (Hagstrom), compared with, 222 153 Value funds, generally: Washington, Dennis, 55 Washington Post Company, 21, 84\u201385 comparison of, 6\u20137 Waumbec Mills, 122 growth funds compared with, 47\u201351 Web sites, as information resource, 2, Value investing: growth vs., 6, 164\u2013165, 173 64, 76, 142 historical perspective, 35 Wells Fargo, 4, 51, 69\u201370, 95, 130, 164, index funding vs., 15 philosophy, 13 181 professional advice on, 111\u2013112, Wesco Financial, 118\u2013119 Western Paci\ufb01c, 180 163\u2013169, 174, 265\u2013267 Westinghouse, 15 Value investors, growth investors What Wall Street Doesn\u2019t Want You to compared with, 194\u2013195 Know (Swedroe), 14 Value Line Investment Survey, 2, 64, 76, White Oak Growth, 50\u201351 Whitman, Martin J.: 98, 106 Value stocks: on index funds, 174 investment strategy, 3, 48, 159, characteristics of, 45\u201346 historical performance, 14\u201315 171\u2013172, 202, 223 Vanguard: on mutual funds, generally, Emerging Markets Stock Index, 5 500 Stock Index, 5, 15, 154 174\u2013175 Group, 9 value investing vs. growth investing, Growth Index, 49 Health Care Portfolio, 78 174, 265\u2013267 Total Stock Market, 229 Why Smart People Make Big Value Index, 49 Van Wagoner, Garrett, 57 Mistakes\u2013And How to Correct Veace, Bruce, 206 Them (Belsky\/Gilovich), 132 Vincenti, Louis R., 118\u2013119 Wiggin, Al, 213 Volatility, signi\ufb01cance of, 47, 137, 222 Winning stocks, 112, 223 Vontobel U.S. Value: Winning the Investment Game basics of, 203 (Gipson), 79\u201380 bene\ufb01ts of, 202 Winters, David, 211 performance, 2, 4, 6, 12, 142, 192, Witter, Dean, 277 Women, investment strategies, 167 200 Wonderful businesses, de\ufb01ned, 239\u2013240, stock selection factors, 197, 199 253 Woolworth, 15 Walczak, Edwin: Working capital, 148 on growth investing, 201 Wrigley, William, Jr., 154 investment strategies, generally, 4, 12, 142, 192, 197\u2013198, 222 Xerox Corporation, 26, 179, 187\u2013188 stock selection factors, 201\u2013202 on technology stocks, 201 Yacktman, Donald, 136 as value investor, 199\u2013201 Yacktman Focused, 136 Yellow Hatters, 13 Wall Street analysts, role of, 105 Wall Street Journal, 216\u2013217 Zazove, Earle, 57 Zero coupon bonds, 216"]