Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Graham and Doddsville - Issue 2 - Summer 2007

Graham and Doddsville - Issue 2 - Summer 2007

|Views: 42|Likes:
Published by g4nz0
Graham and Doddsville
An investment newsletter from the students of Columbia Business School
Volume I, Issue 2 p. 3 Summer 2007 Inside this issue: Sitting Down with Warren Buffett 2007 CIMA Conference Footstar

Global Treasure Hunter: David Winters
For the second issue of Graham and Doddsville we are pleased to share an interview with David Winters, Founder and Chief Investment Officer of The Wintergreen Fund. Prior to founding Wintergreen Advisors in 2005, Mr. Winters was Chief Investment Offic
Graham and Doddsville
An investment newsletter from the students of Columbia Business School
Volume I, Issue 2 p. 3 Summer 2007 Inside this issue: Sitting Down with Warren Buffett 2007 CIMA Conference Footstar

Global Treasure Hunter: David Winters
For the second issue of Graham and Doddsville we are pleased to share an interview with David Winters, Founder and Chief Investment Officer of The Wintergreen Fund. Prior to founding Wintergreen Advisors in 2005, Mr. Winters was Chief Investment Offic

More info:

Published by: g4nz0 on May 10, 2012
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





the same direction as therest of the shareholders.I think you want to haveboth those factors plus anundervalued security price.When you have those 3things, then you have atrifecta. And you want atrifecta.For the second issue of 
Gra-ham and Doddsville
we arepleased to share an interviewwith David Winters, Foun-der and Chief InvestmentOfficer of The WintergreenFund. Prior to foundingWintergreen Advisors in2005, Mr. Winters was Chief Investment Officer of Frank-lin Mutual Advisors and Port-folio manager of the FranklinMutual Discovery Fund. Mr.Winters joined Mutual Seriesin 1987, one year before thedeath of legendary investorMax Heine. He would spendthe next decade workingside-by-side with anotherinvesting legend MichaelPrice.Q: You’ve described yourself as being on a global treasurehunt. What’s the checklistof characteristics that asituation has to have beforeyou invest?DW: I don’t know if there’san exact checklist. There’sno magic formula becauseevery situation is a little dif-ferent. But if you’re talkingabout what my ideal invest-ment is, first of all I want agood underlying business. Abusiness that is, hopefully,getting better over time, sotime is your friend. Then Ireally need to have manage-ment who are committed todoing the right thing, who Isometimes describe as beingin the boat pulling the oars in
Global Treasure Hunter: David WintersWelcome Back to Graham and Doddsville
We are pleased to presentyou with the second editionof 
Graham and Doddsville
,Columbia Business School’sstudent-led investmentnewsletter co-sponsored bythe Heilbrunn Center forGraham & Dodd Investingand the Columbia Invest-ment Management Associa-tion.This edition’s feature inter-view is with David Winters,who graciously sat with usfor an extended, insightfulconversation describing hisapproach to investment man-agement. He and his col-leagues at Wintergreen Ad-visers have truly embarkedupon, as Mr. Winters calls it,a “global treasure hunt.”We hope and trust you willlearn as much from reading itas we have.Along with providing ourreaders with insightful andtimeless contents, we alsoaim to provide specific in-vestment ideas that are rele-vant today. Inside are twostudent investment recom-mendations, including thefirst short to appear in thepages of 
Graham and Doddsville
.In April students of Profes-sor Greenwald’s Value In-vesting class made their an-nual pilgrimage to the officesof Berkshire Hathaway in
(Continued on page 2)
Summer 2007Volume I, Issue 2
Editors:Joseph Esposito
MBA 2007
 Abigail Corcoran
MBA 2008
 David Kessler 
MBA 2008
Inside this issue:
Sitting Down withWarren Buffettp. 3Footstarp. 12Ainsworth LumberCo.p. 14Tracking the Super-Investorsp. 182007 CIMAConferencep. 4
David Winters, Founder andChief investment Officer of The Wintergreen FundContact us at:
Visit us at:
Graham and Doddsville 
An investment newsletter from the students of Columbia Business School
Omaha Nebraska. Close to100 students spent the bet-ter part of a day with War-ren Buffett ‘51. In addition,three students were selectedto sit down with Mr. Buffetto learn his thoughts on lead-ership and ethics. We arelucky to have one of thosestudents share his experiencesitting down with the Oracleof Omaha.Please feel free to contact usif you have comments orideas about the newsletter,as we continue to refine thispublication for future edi-tions. Enjoy!
(Continued from page 1)
Welcome to
Graham And Doddsville 
(continued from page 1)David Winters
(continued from page 1)
the great currencies of theworld.There are other currencieswhere it’s very hard to know.In those situations we might beinclined to hedge out the risk if it made sense. But we like thereally hard currencies.With the legal system you’vegot to figure out if the rule of law is important to the way thesociety is run. In a country likeSwitzerland or the UK, there isrule of law. That doesn’t meanthere aren’t going to be legalsurprises, but there are clearlylong-standing legal systems toprotect owner’s rights.Q: You’ve talked about con-structing a portfolio of pearls,where the barnacles on theshells hide the underlyingbeauty underneath. Wheredoes the search start for you?DW: The new 52 week low listis a great place to look. Andsometimes it isn’t just individualnames, but a sector may be outof favor. Other times it’s com-plexity that really distortssomething that’s wonderful,because most people don’t likecomplexity. This business isabout people basically beingspoon-fed, and if you have aconglomerate that requires alot of work and more than onesector, that really turns peopleoff.
(Continued on page 4)
Q: Are there additional itemsthat you look at when you’reinvesting in non-US companies?How do you assess things likehow solid the currency is, orhow reliable the legal systemsor the accounting standardsare?DW: They’re all good ques-tions, and there are no exactanswers. Some countries havewonderful underlying curren-cies. For example, Norway,where you have all this oil andgas. You have 4.5 million peo-ple, and you have approxi-mately 300 billion dollars(derived from oil taxes) sittingin a government fund for thebetterment of society. Soyou’ve got millions of dollars incash and securities behindevery Norwegian citizen. Youcan see why I think the Norwe-gian Krona is probably one of 
We’ve found over the years that inthe best investmentsituations, the moreyou dig at them themore good stuff youfind.
Page 2
Students at Columbia Business School have the un-paralleled advantage of learning from value investingluminaries including Joel Greenblatt of Gotham Capi-tal and Bruce Greenwald
“(Buffett) alsostated that weat Columbiaare very lucky to have accessto suchresources and a greatinvesting  program.” 
Page 3Volume I, Issue 2
One on One with a Legend - A Personal Meetingwith Warren Buffett
argue whether Berkshire issimply a statistical outlier. Co-lumbia’s value investing infusedstudents religiously (try to)follow Warren’s and his part-ner Charlie Munger’s philoso-phy. Warren mentioned thatwhat he learned from DaveDodd and Ben Grahamchanged his life – and he stilltruly appreciates the chance hehad to be their student andfriend. He also stated that weat Columbia are very lucky tohave access to such resourcesand a great investing program.To the statement that “we betour careers that markets arenot efficient”, his response was:“Let the other guys bet theircareer on the other side.There’s nothing like being on abridge table when the otherguy believes he shouldn’t belooking at his cards.”Our conversation was focusedon leadership and ethics. Asevery one of his sentences isworth a life lesson, I think quoting them untouched is thebest way to pass on the wis-dom in its purest form. Thequotes under different topicsare listed below.In essence, Warren asked us toacknowledge how lucky we arein this world and to givethought on how to give back our winnings to society. Giventhe tremendous resources andopportunities we’ve enjoyed,it’s our responsibility to helpothers that have not had thischance. We often witness thatsuccess in the world of invest-ing often comes with an egoattached to it and many WallStreet champions would proba-bly have a problem acknowl-edging that their wealth wasdue to other factors ratherthan their own “rock star” typeabilities. While this is easiersaid than done, I hope the suc-cessful ones among us will havethe conscience to givewhen the time comes.After our conversation,we were lucky enoughto enjoy an office tourby Warren himself.Interestingly, the bestpart of the office wasthe hallway. The wallsare full of highly inter-esting memorabilia in-cluding the first shareregistry of his early part-nership, the letter sent totake over LTCM, an origi-nal American Express stock certificate signed by foundersWells and Fargo, a tradingticket at Tweedy Browne & Coof Berkshire shares (includingWarren’s first purchase at $73/8), an exact half-scale modelof the robot sent to Mars, andmany more.Warren is referred to by manyas the ‘Oracle of Omaha’. Onthe contrary, he has made hissuccess not by predicting fu-ture events, but by benefitingfrom his rational thought proc-ess. Hence, the referral ‘theSage of Omaha’ is probablymore appropriate. As laid outin the quotes below, it’s trulyamazing how Warren uses hisframework – not only in invest-ing – but also in every othercomplex issue in life. Not every
(Continued on page 16)
Burak Alici, MBA 2007Marc Schaeffer, Mike Assenzaand I were quite tense as wewalked into 1440 Kiewit Plazafor a school interview withWarren Buffett on Leadershipand Ethics. Although we hadseen him at the class visit theday before, the realization hitus that we were about to sitand have a heavy conversationwith the wisest man alive.Stepping out of the elevator,we were surprised at how plainthe hallway was. We actuallyhad difficulty finding the maindoor, and by mistake walkedin through the back door -the office almost felt vacated.Contrary to many Wall Streetfirms, Berkshire does not relyon a large army of profession-als to operate – the ‘rational’investment approach savesthe hassle. We recalled War-ren telling that they probablynever built a spreadsheet inthe history of Berkshire. Themiraculous four-decades-longinvestment record is obviousevidence that a few ‘clear’thinking individuals can be su-perior to hundreds that followan ‘unclear’ thought process.Margaret, Warren’s personalassistant, greeted us, andthankfully chatted with us toalleviate the stress (she alsoshowed the courtesy to driveus to the airport later on). Aswe sat in the office and enjoyedour ice cold Cokes, Warrensoon showed up with somenewspapers and a McDonaldsbag in his hand. The hamburgeralong with a glass of CherryCoke is part of the daily diet.When his doctor asked him tomake a choice between cuttingdown on the burgers or havingto exercise every day, Warrenchose to exercise.Let market efficiency cohorts
Warren Buffett (’51) posedwith students outside of Gorat’s Steak HouseBurak Alici, Mike Assenza, WarrenBuffett, Marc Schaffer 

Activity (3)

You've already reviewed this. Edit your review.
1 hundred reads
Ed Slapansky liked this
ncffai liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->