February, 2009

The most dangerous downfall of a value investors is falling in love with a real bargain. The so called deep value investing can be the biggest value trap of all.

Many people don't know how to see and analyze their own mistakes. The method is simple. Take a look at your biggest stock market losses, and post here the causes of those big mistakes.

I will start:

民主党未经共和党同意，将7870亿美元议案提交白宫

议会和参议院最终通过了全面的经济恢复法案，这树立了联邦政府干预国家经济的一个新里程碑。

一个月的争议后，国会投票通过了一套折中的经济复苏法案，包括消费规定，减税以及帮助下岗工人及其家庭。这项有1073页的法案含有上百条规定。

周五没有一个共和党议员投票赞成这一经济复苏方案，7名民主党人与176名共和党人反对，264票赞成。

晚些时候，参议院以60比38的票数通过将法案上交白宫的提议，总统Barack Obama将签署使其成为法律。3名共和党与57名民主党议员赞成，38名共和党议员反对。

这次投票包括了国家对经济复苏的一整年的资金救援，而从2007年12月以来，已有360多万的工作岗位被取消。家庭抵押品赎回权的丧失、紧张的贷款和下滑的消费者需求预示着更多失业的来临。

Many contributors to our over-the-top boom, which led to the gross bust, are known. They include insufficient controls over morality and prudence in banks and investment banks; undesirable conduct among investment banks; greatly expanded financial leverage, aided by direct or implied use of government credit; and extreme excess, sometimes amounting to fraud, in the promotion of consumer credit.

Guys, here is a great interview. Looks like Steve Forbes is jumping into the value investors interview business.

From what I read in the tea leaves, John Osterweis' approach has a few points quite similar to Zenway Value-growth Investing. Cheers!