Tilson On Financials, And The Importance Of Discipline

Whitney Tilson says he doesn’t think the U.S. is headed for financial Armageddon, which means numerous bargains — including several in the financial sector — are available right now. “Yes and no,” Tilson says when asked by Forbes’ Steve Forbes if there are more bargains in the market than there were in 2008. “In terms of just pure, crazy cheap 20 cent dollars out there, it’s nothing like late 2008, early 2009. On the other hand, the world then was on the edge of Armageddon. … Things were cheaper then, but you were taking much greater risk. Today, if you […]

Tilson: Plenty of Values Right Now

Whitney Tilson says the U.S. economy is in better shape than most people think, and he is finding big value in a number of prominent companies’ shares. “The U.S. has already gone through and emerged from the subprime debt crisis,” Tilson tells MarketWatch. “There’s still an overhang and it has to work its way through,” he adds, but he says the U.S. is further along in resolving its problems than many other parts of the world. Tilson is finding opportunities in several areas of the market, including bank stocks like Goldman Sachs, Citigroup, and JP Morgan Chase and tech stocks […]

Tilson: Economy Hanging In; Market Cheap as It’s Been Since ’09 Bottom

Whitney Tilson, who has an exceptional long-term track record but has struggled of late, says several economic indicators — including Warren Buffett — are leading him to believe that the U.S. economy will avoid major crises in the next few years. And, he says stocks are as attractive as they’ve been since the 2009 bottom. “We are closely monitoring developments and have been increasing our short exposure selectively,” Tilson and Glenn Tongue write in a recent letter to investors, “but we remain substantially net long because, unlike 2008, when we were convinced that the bursting of the housing bubble was […]

Tilson & Heins on Staying Disciplined

Warren Buffett has said that investing is simple, but it’s not easy, and in their latest Kiplinger’s column, value investors Whitney Tilson and John Heins explore that subject. “In The Little Book That Beats the Market, published in 2005, star money manager Joel Greenblatt describes a ‘magic formula’ for success that ranks stocks based on only two factors: share price relative to a firm’s earnings and return on capital,” Tilson and Heins write. “After reading his book, we asked Greenblatt if widespread adoption of his simple plan might undermine its effectiveness. He was unconcerned: ‘Value investing strategies have worked for […]

Tilson & Heins on “Lottery” Picks

While they are value investors, Whitney Tilson and John Heins say that it’s okay to swing for the fences on riskier stocks. “Overpaying for stocks is always a bad idea,” the duo writes in their latest Forbes column. “But there are times when the market offers what we consider mispriced options on success. We will happily make an investment even when we know there’s a decent chance we’ll lose most or all of our money, as long as the upside is great enough to offset the risk. If we’re investing $100 in something that has a 70% chance of being […]