STREET DOGS

The lifecycle of investing approach is a framework that states that markets, industries, companies and stocks typically move through five stages over time. These stages are: 1) distressed, discarded and/or undiscovered, 2) value, 3) growth at a reasonable price (GARP), 4) growth, and 5) momentum. The lifecycle analysis and an appreciation for a company‘s evolution through the cycle often lead us to ask whether a company will be perceived as better (up the cycle) or worse (down the cycle) over a reasonable investment horizon. – Michael Karsch

People are always asking me where the outlook is good, but that’s the wrong question. The right question is: where is the outlook most miserable? The obvious application of this concept in practice is to avoid following the crowd. – John Templeton

Eventually, good stocks of good companies with solid earnings and low price-earnings ratios receive the attention they deserve. With patience, luck, and sound judgement, meanwhile, you keep moving forward. That’s the nature of the investment game: now and then a windfall, but mostly a four-yard gain and a cloud of dust ... if you can’t roll with the hits, or you’re in too big a hurry, you might as well keep your money in a mattress. – John Neff

One can broadly divide value investing into two camps. The first camp is the Graham & Dodd style which is buying assets at a discount or cash at a discount. The second camp is the Buffett style, which can be characterised as buying financial productivity at a discount. The trick is being able to buy this stream of cash flows at a discount. Unlike Graham & Dodd investing where you might look at low price-to-book value companies or net-net companies, we try to buy high financial productivity at a discount to its intrinsic value. – William Von Mueffling