"To me, it's obvious that the winner has to bet very selectively.
It's been obvious to me since very early in life. I don't know
why it's not obvious to very many other people."  - Charlie Munger


Stingy Links
http://www.stingyinvestor.com/SI/articles/articlearchive.shtml

Buffett's Berkshire buys big Burlington stake
http://money.cnn.com/2007/04/07/news/companies/berkshire_bni/index.htm?postversion=2007040712
"Warren Buffett's Berkshire Hathaway Inc. has bought a stake of more than
10 percent in railroad operator Burlington Northern Santa Fe Corp. that's
worth about $3.2 billion, according to a filing with regulators."

Big profits = danger ahead
http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402379/index.htm?postversion=2007031307
"To gauge how much you're really paying for a dollar of profits, it's more
revealing to compare today's prices with average earnings over the past
ten years. That formula takes out the big swings in earnings that can make
stocks look artificially undervalued or overvalued. By smoothing earnings,
Asness gets an adjusted P/E of around 25 for the S&P 500. That's well
above the historical average of 14 or 15. That's expensive, and buying in at
high prices has always been the ticket to low future returns."

Imperfect union
http://www.forbes.com/home/wallstreet/2007/04/04/ing-teachers-union-biz-wallst-cz_nw_0404union.html
"Lies, kickbacks, union corruption and tens of millions of dollars in
ill-gotten gains are among the accusations laid out in a lawsuit that's likely
to strike fear in the hearts of labor leaders and financial executives
across the country."

Lessons from living down and out
http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/LessonsFromLivingDownAndOut.aspx
"We were poor and unhappy, so I thought having money meant being happy . .
. (but) my husband also grew up very poor, and his family was close and he
had a loving childhood. (Meanwhile,) many rich people are miserable.
Don't confuse money and happiness. They're separate issues and you need to
work on your family and relationships just as hard as you work on finances.
Don't give up family and relationships in pursuit of money and don't assume
money will fix your personal life."

Buffett wisdom
http://finance.yahoo.com/expert/article/futureinvest/27711
"LTCM had taken a huge leveraged position in these bonds when the spreads
were much smaller, but didn't have the collateral to hold on to it when the
spread widened. Buffett quoted John Maynard Keynes, who wrote in 1931
that 'The market can stay irrational longer than you can stay solvent'. As
the spread widened, Keynes' dictum became devastatingly relevant for LTCM.
But Berkshire, with its huge cash hoard, could withstand the pressure of
even more market irrationality before the spread eventually returned to
normal. Unfortunately, Warren was never able to consummate the deal. He had
been invited by Bill Gates to vacation in Alaska when the crisis broke and
it was hard to negotiate such a deal on a cell phone. Eventually the banks
holding the collateral made a deal with LTCM and Berkshire didn.t have a
chance to top their offer. Warren is philosophical about the loss of this
opportunity, noting it was the most expensive vacation he ever took. 'Bill
Gates cost me about $3 billion,' he shrugged."


S&P/TSX60 Value Screens
http://www.stingyinvestor.com/SI/strategy.shtml 

High Dividend Yield Stocks                     P/E P/B P/S P/C P/D Yield*
============================================== === === === === === ======
Biovail (BVF)                                   1   2   1   5   5    5
BCE (BCE)                                       3   4   4   5   5    5
Transalta (TA)                                  1   5   4   4   5    5
Bank of Montreal (BMO)                          4   4   3   3   5    5
TransCanada (TRP)                               3   4   3   4   5    5
National Bank of Canada (NA)                    5   4   4   3   5    5
Enbridge (ENB)                                  2   3   4   3   5    5
Bank of Nova Scotia (BNS)                       4   3   3   2   5    5
Royal Bank (RY)                                 3   2   3   2   5    5
Toronto Dominion Bank (TD)                      3   4   3   3   4    4
More Info: http://www.stingyinvestor.com/SI/strategy/dogs.shtml 

Value Ratio Stocks                             P/E P/B P/S P/C P/D  VR
============================================== === === === === === =====
Teck Cominco Limited (TCK.B)                    5   3   2   3   4   2.9
BCE (BCE)                                       3   4   4   5   5   3.3
Bank of Montreal (BMO)                          4   4   3   3   5   3.4
National Bank of Canada (NA)                    5   4   4   3   5   3.5
CIBC (CM)                                       5   3   4   2   4   4.1
Bank of Nova Scotia (BNS)                       4   3   3   2   5   4.5
Royal Bank (RY)                                 3   2   3   2   5   4.8
TransCanada (TRP)                               3   4   3   4   5   4.9
Encana (ECA)                                    5   3   2   5   3   4.9
Toronto Dominion Bank (TD)                      3   4   3   3   4   5.1
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                                  P/E P/B P/D   G$   dG$(%)
============================================== === === === ====== ======
Bombardier Cl.B (BBD.B)                         5   2   0    5.85  26.05
Teck Cominco Limited (TCK.B)                    5   3   4   88.78   6.99
Weston George (WN)                              5   5   4   74.55   5.55
Encana (ECA)                                    5   3   3   62.73   4.82
ACE Aviation Holdings Inc. (ACE.B)              5   4   0   31.85   3.57
Magna Cl.A (MG.A)                               3   5   2   90.34   1.09
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

*Notes: http://www.stingyinvestor.com/SI/strategy/notes.shtml 


Books for Stingy Investors

Common Stocks and Uncommon Profits
by Philip A. Fisher

Fisher takes a qualitative view of stocks and stresses the
importance of intangible aspects of a firm with heavy emphasis on
research and human capital. He also falls into the focused camp of
investors who buy only a few carefully selected stocks and hold
them for long periods. As Warren Buffett's second favourite book
on investing, Common Stocks and Uncommon Profits is a must read
for students of the market.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0471445509/


Stock Research From Dan Hallett & Associates

The Rothery Report
http://www.stingyinvestor.com/SI/store.shtml 

The Rothery Report provides research on select deep-value stocks in
North America. Discover overlooked and undervalued stocks in quarterly
investment reports which provide detailed analysis of Canadian and
U.S. stocks.  Weekly email news and additional updates keep
subscribers informed about new opportunities and developments.

Rothery Report Performance (03/31/2001 to 12/31/2006)
  Average Capital Gain    Average Holding Period
    Sold Stocks: 76.6%      Sold Stocks: 2.0 Years
    All Stocks: 50.8%       All Stocks: 2.3 Years

Special Bonus Reports: Top Smaller Stocks 2007
http://www.stingyinvestor.com/SI/store/TopSmallStocks.shtml

Learn More
http://www.stingyinvestor.com/SI/store.shtml

Subscribe Today
http://www.stingyinvestor.com/SI/store/order.shtml 



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ISSN 1499-2795 Copyright Dan Hallett and Associates Inc., 2007.
All rights reserved. The securities mentioned in this report are not
appropriate for all investors. Consult your professional investment
advisor before making any investment decision.  While all reasonable
effort is made to ensure the accuracy of information and data
contained herein, accuracy can not be guaranteed. Past performance is
not a good predictor of future performance.  Results are not
guaranteed and we assume no liability whatsoever for any material
losses that may occur.  No compensation for suggesting particular
securities or financial advisors is solicited or accepted.  The
information in this newsletter, and in its related website, is not
intended to be, nor does it constitute, financial advice or
recommendations.  Investing in stocks can be risky and may result in
substantial losses.  A Dan Hallett and Associates Inc.(DH&A)
publication.  DH&A is registered as Investment Counsel in the province
of Ontario. DH&A, or related-parties may have an interest in the
securities mentioned.