Constellation Software – Takeaways From Mark Leonard’s Shareholder Letters

This article contains a very brief description of Constellation Software, a look at its competitive advantages and excerpts from Mark Leonard’s excellent shareholder letters. The excerpts are quite long, about 5 000 words, and I really recommend going to the source and read them all. Mark Leonard: Mark Leonard, a former venture investor and Englishman, founded Constellation Software in 1995

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The Perils of Selling Short

I signed my first client and proceeded to short my first stock. It almost proved to be my last. Over the next few weeks, I watched the stock trade up to 20, then 30, then 40, finally breaking through 50…..But when the stock climbed past 50, I started to cover, unable to stand the pain. It was too late, however,

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Taxes And Compounding

To shelter your savings from taxation while you are building your nest egg is extremely important. I believe this is pretty obvious for most investors, but I suspect it’s still neglected because the headwind takes about ten years to really make a difference. Unless you have a tax sheltered account you will take a beating whenever you receive a dividend

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The Management Myth – Debunking Modern Business Philosophy

I guess most readers of my website have read books by management gurus like Jim Collins and Tom Peters, and many more have probably studied Micheal Porter’s Competitive Strategy. But “the problem” with business theory is that it’s solely built on case studies and have not been tested in a scientific way. Matthew Stewart’s The Management Myth – Debunking Modern

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Famous Quotes By Warren Buffett

I believe the annual letters of Buffett is an invaluable source of investment knowledge. I recently reread all of them, in addition to rereading Lawrence Cunningham’s The Essays Of Warren Buffett – Lessons For Investors And Managers. The book is excerpts from all the annual letters and is basically all you need.  I have read the annual letters a few

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Stocks, Investing, Real Estate, Charlie Munger And Inverse Thinking

Charlie Munger likes to think inversely. Inverse thinking simply means focusing on the things you don’t want to happen. Munger didn’t invent this concept, but he has made it immensely popular. While Munger turns the question on its head, he touches upon a very important aspect: how to avoid mistakes. Why does inverse thinking help? Munger says this avoids stumbling

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Should You Trade Or Invest?

I often receive e-mails from potential traders that want to get “rich” trading. I tell them to instead consider investing their capital for long-term appreciation, preferably via passive or active mutual funds. This is why: The chart shows 10 000 initially invested and an equal amount invested annually for 30 years with 9% return: after 30 years you have almost

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What Investors And Traders Can Learn From Atul Gawande’s The Checklist Manifesto

This weekend I reread The Checklist Manifesto, a book published in 2010. This is an outstanding book and highly recommended. Below you find some random arguments why I believe a checklist should be a part of the toolkit of any aspiring speculator or investor. Both Charlie Munger and Warren Buffett use checklists. Buffett has a mental one, while I believe

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Minimum Wage And Its Implications

More or less all countries have established minimum wage by law. It serves as a floor for the price of labor. Put simply, minimum wage is the lowest hourly, daily or monthly payments that employers can legally pay to its workers. Even a worker cannot sell his labor at a lower price  if he wants to! In this article I

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About This Site

My name is Oddmund Groette (1971) and I reside in the former USSR (but I’m a citizen of Norway). This website contains my thinking and thoughts on the subjects that interest me the most: investing, business and philosophy in everyday life. I have been a full time investor for almost 20 years, and I spend my time reading, thinking, writing,

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