Tilson On The Three Most Dangerous Words In Investing

Even the most astute investors can fall prey to emotions and behavioral biases, and in a recent interview value guru Whitney Tilson talks about how to keep those emotions and biases in check. “There is no sure-fire way to get rich quickly,” Tilson tells Steve Forbes. “In fact the pursuit of that usually leads to ruin. The best way I know to get rich long term is to invest prudently and conservatively and not try and get rich quick, but try and get rich slowly, basically. Especially in an environment like this where the stock market is hitting new highs […]

Tilson Talks Valuations, Profit Margins

Top manager Whitney Tilson says the environment has become tough for value investors, but adds that he’s still finding some bargains out there. “This is not an ideal environment for a value investor like me because to find wonderful bargains it helps to have some distress in the market — or at least some area of the market — but there’s very little of this today,” Tilson wrote in his latest quarterly letter (hat tip to ValueWalk.com). “The major indices are at or near all-time highs and, for example, the VIX, a volatility measure of the S&P 500, dropped 30% […]

Tilson On His New Strategy

In his annual letter to clients, top value investor Whitney Tilson says he is getting back to basics now that he is managing money on his own. “I truly believe that less is more,” writes Tilson in his first annual letter since he and former business partner Glenn Tongue parted ways. “Going forward, the funds I manage will be concentrated in my very best, carefully researched investment ideas, with approximately 15 meaningful positions on the long side and a similar number of (much smaller) positions on the short side. My target portfolio exposure is 80-100% long and 15-30% short. In […]

Where Tilson Is Finding Value

Top value investor Whitney Tilson recently gave an extensive presentation at the Value Investing Congress, saying he is “cautiously optimistic” that the U.S. economic recovery will continue and offering some of his top investing ideas. “I am cautiously optimistic that a tepid economic recovery will continue in the U.S.,” Tilson said, “but with the S&P 500 up more than 16% YTD, the markets have already had a good year so I don’t see much upside unless the economy really takes off, which I think is unlikely.” (A tip of the hat to Business Insider for posting the presentation.) He also says several factors […]

Tilson: China Is “Completely Uninvestable”

While Chinese stocks have fallen in recent months, top value investor Whitney Tilson isn’t seeing value in the Asian giant. In fact, he says China is “uninvestable”. In an email to ValueWalk.com, Tilson explains how his father appears to have been scammed after recently buying a product from a Chinese website, “yet another case study that reinforces my belief that if you do business or invest in China or with Chinese companies, there’s an alarmingly high likelihood that you will get scammed”. Tilson says that rather than trying to address fraud, the Chinese government “instead … attacks those who seek […]