"My definition of value is figure out what the business is worth and pay a lot less. It is not low price-to-book, low price-to-sales investing.... As Warren Buffett would say, value and growth are tied at the hip. Growth is part of value.... The reason I’m a value investor, according to our definition, is stocks are actually ownership shares of businesses that you value and try to buy at a discount, they’re not pieces of paper the bounce around that you put Sharpe ratios and Sortina ratios and use computer simulations to balance your portfolios or whatever it is. Basically, they are ownership shares of business that you value and try to buy at a discount. So it’s certainly possible that the market does not reward my valuations even if I’m right over the next two years, but that doesn’t mean we’re going to stop doing what we’re doing. That’s what stocks are: ownership shares of businesses, and that’s very fundamental to the way we look at everything." --Joel Greenblatt
Joel Greenblatt on the Masters in Business podcast (audio and transcript) (LINK)
Buffett's Edge [H/T Abnormal Returns] (LINK)
The Most Valuable Investment Skill - by Sean Iddings (LINK)
How Hedge Funds Hide [H/T Will] (LINK)
Seth Klarman’s Baupost Group buys distressed debt and goes to great lengths to hide it. Here’s why — and how — hedge funds such as his fight to keep secrets. Part 1 of a two-part series.Mark Leonard's annual letter to Constellation Software shareholders (LINK)
Negative Equity, Veiled Value, and the Erosion of Price-to-Book - by Travis Fairchild (LINK)
Baseball & Waiting for the Fat Pitch - by Frank K. Martin (LINK)
Hugh Hendry’s Life After Hedge Funds [H/T value and opportunity] (LINK)
The Investors Podcast: The Culture Code w/ Daniel Coyle (LINK)
a16z Podcast: Principles and Algorithms for Work and Life (Ray Dalio) (LINK)
Investing and Business Lessons from Aileen Lee (Cowboy Ventures) - by Tren Griffin (LINK)
When the Twitter Mob Came for Me ($) (LINK)
Recently hired by the Atlantic and then promptly fired, the conservative writer Kevin D. Williamson discusses the social-media outrage that made the celebrated magazine retreatBeyond Black Box Management - by Cal Newport (LINK)