Value Investing Congress
In Case You Missed It
Today we're featuring a special discount exclusive to Cabot Wealth Advisory readers from our friends at the Value Investing Congress. We're also including Cabot Benjamin Graham Value Letter Editor J. Royden Ward's notes from last fall's fourth annual New York Value Investing Congress to give you a sense of the caliber of the program.
First, here's what Roy had to say about his experience at the October Value Investing Congress:
"Last October, I attended the Value Investing Congress in New York City, and was fortunate to listen to quite a few very successful value investors. I also was able to meet speakers and other investors to learn more about their approach to investing in the current turbulent stock market. The experience was very enlightening, and I came away with some valuable insights that I want to pass along to you.
"The Congress started with a detailed presentation about the recent history of mortgage lending and the events leading up to the financial crisis currently gripping the U.S. and many other countries. I could write several pages about the details presented, but I think I can simplify the events for you with the following summary: Consumers bought cars, homes and luxury items that they could not afford. Lenders provided loans with ridiculous terms. Wall Street invented highly leveraged securitized investments backed by these same mortgages and labeled them "high quality," even though they were very low quality. Regulators eased the rules and restrictions at a time when rules should have been tightened. The end result was a perfect storm.
"According to investors at the Congress, mortgage problems and home price declines will continue for quite some time (which we have seen since I attended). Only half of the adjustable rate mortgages have re-set to higher interest rates, which might indicate that the decline in home prices is only half over. The average home's value in America might decline a total of 30%. Home prices will likely move from overvalued to undervalued.
"The amount of time needed for the decline in home prices to run its course is anybody's guess. The consensus of opinion at the Congress was that another two to three years will be needed for the housing market and the economy to wash toxic mortgages through the system. Americans will need to adjust their spending habits to start saving more of their income, rather than spending more than their income. Banks will need to lend to consumers who can clearly afford to repay their debts. More regulation will be needed to meet the problems that new investment products can create.
"What does all this mean for the stock market? As the economic and financial problems get worked out during the next few years, the stock market will continue to be volatile. For value investors, it's the time to buy as prices this low come along only once in a lifetime. Warren Buffett said it best: "Bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price."
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And now for a word from the folks at the Value Investing Congress:
"Warren Buffett also once said, "Be fearful when others are greedy, and greedy when others are fearful." It is in this spirit that we have arranged a special discount for Cabot Wealth Advisory readers to attend the next Value Investing Congress, taking place May 5 and 6, 2009, at the Langham, Huntington Hotel & Spa in Pasadena, California.
"Register by March 15 at http://www.ValueInvestingCongress.com/cabot using discount code P09CWA to save an additional $100 on top of the early bird discount of $1,200. That's a total savings of $1,300, but you must register by midnight on March 15. As of March 16, the price will go up by $1,200.
"The Value Investing Congress is not your typical investment conference. It was created by value investors, for value investors and is an opportunity to meet, share ideas and learn from some of the world's most successful money managers.
"At the upcoming event, all-star investors will share invaluable insights on how to navigate through this precarious time, find dramatically undervalued stocks and ultimately benefit from today's market fluctuations.
"Confirmed speakers include:
* Scott Klein, Beach Point Capital Management
* Brian Gaines, Springhouse Capital
* Igor Lotsvin & David Chu, Soma Asset Management
* William C. Waller & Jason Stock, M3 Funds
* Zeke Ashton, Centaur Capital Partners
* Timothy S. Mullen, VNBTrust, N.A.
* Dave Rabinowitz, Kirkwood Capital
* J. Carlo Cannell, Cannell Capital
* Jed Nussdorf, Soapstone Capital
* John Burbank, Passport Capital
* David Nierenberg, D3 Family of Funds
* Guy Spier, Aquamarine Capital Management
* Charles de Vaulx, International Value Advisers
* Whitney Tilson & Glenn Tongue, T2 Partners.
"Immediately after the Congress concludes, you'll have the opportunity to go to the nearby Pasadena Center and learn from the brilliant Charlie Munger--Warren Buffett's investing partner for over 40 years--at the Wesco annual meeting. It is a wonderful opportunity to directly question one of the most successful investors of modern times and you needn't be a Wesco shareholder to attend.
"Now more than ever, you cannot afford to miss this event. The knowledge you gain at the Value Investing Congress could guide your investing decisions profitably for years to come. To take advantage of this special offer and save $1300 off the regular price of admission, visit http://www.ValueInvestingCongress.com/cabot by March 15 and use discount code P09CWA. Your next great investment idea could be waiting in Pasadena."
In case you didn't get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, I have links below to each issue.
Cabot Wealth Advisory 3/2/09 - How to Sell Your Business
On Monday, Timothy Lutts wrote about a recent seminar he attended run by Generational Equity, a business broker who helps small businesses sell themselves. Tim reviewed the mistakes small businesses make when trying to find a buyer and how they can correct them. Tim also wrote about a small, growing Chinese education stock. Featured Stock: ChinaEdu Corporation (CEDU).
Cabot Wealth Advisory 3/5/09 - An Easy Way to Time the Market
On Thursday, Michael Cintolo wrote about two income securities offering respectable yields and pay dividends monthly, thereby providing safety, especially during market downturns. Mike also discussed an easy way to time the market using free stock charting tools online. He finished by discussing the benefits of using a professional money manager versus doing it yourself. Featured ETFs: PowerShares VRDO Tax-Free Weekly Portfolio (PVI) and Vanguard Total Intermediate-Term Bond ETF (BIV).
Until next time,
Editor of Cabot Wealth Advisory
Editor's Note: Don't have time to read multiple investment advisories every month? We can help. Cabot Stock of the Month ferrets out the best stock across all sectors each and every month, so you don't have to slog through mountains of information to find the top investment idea. It may be a value stock, Green stock, growth stock, emerging markets stock or momentum stock, but it will always be the best for current market conditions. Cabot Stock of the Month gives you exposure to a broad array of sectors and investment styles. Click the link below to get started today.