"The intelligent investor is likely to need considerable will
power to keep from following the crowd."  - Benjamin Graham


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

Munger speaks on Berkshire's success
http://news.morningstar.com/article/article.asp?id=193723
""I didn't set out in life to become the assistant leader of a cult." That
is how Charlie Munger welcomed shareholders to the 2007 Wesco (WSC) annual
meeting. The cult, of course, is the loyal throng of value investors that
invade both Omaha, Neb., and Pasadena, Calif., each spring to learn at
the feet at Warren Buffett and Charlie Munger, and as Munger noted "to leave
a little wiser than they came.""

What Buffett might buy
http://www.businessweek.com/bwdaily/dnflash/content/may2007/db20070507_334857.htm?chan=top+news_top+news+index_top+story
"If Buffett is intent on finding a mega-deal, what kind of target is most
likely? For starters, the sage favors high-quality businesses with
long-term competitive advantages, what he describes as "a moat" that keeps rivals
at a safe distance. He shies away from businesses he doesn't understand,
such as technology. Perhaps most important, Buffett is looking for a
well-run company with a solid management team that he doesn't have to go in and
replace. And he's not chasing after a quick buck. Once he buys a company,
he wants to hold on for the long haul, unlike most private equity firms."

Is the market rational?
http://money.cnn.com/magazines/fortune/fortune_archive/2002/12/09/333473/index.htm
"That brings us back to Thaler, who was working on a Ph.D. in economics at
Rochester in the early 1970s. His dissertation was an attempt to put a
value on human life by looking at how much more people were paid to work in
risky fields like mining and logging. He was working on the assumption, of
course, that people rationally weighed the risk of death in their decision
to accept a job. Along the way Thaler decided to ask a few friends how
much they'd be willing to pay to eliminate a one-in-1,000 chance of
immediate death and how much they would have to be paid to willingly accept an
extra one-in-1,000 chance of immediate death. What he found was that they
wouldn't pay much for the extra margin of safety but demanded huge sums to
accept added risk--which isn't, strictly speaking, rational. "I came to two
conclusions about these answers," Thaler wrote years later. "(1) I had
better get back to running regressions if I want to graduate, and (2) the
disparity between buying and selling prices was very interesting." Thaler did
discuss his subversive thoughts with a few trusted colleagues and people
from other disciplines. One of those people happened to be a newly minted
psychology Ph.D., who sent Thaler a copy of a 1974 article by Israeli
psychology professors Amos Tversky and Daniel Kahneman. (Tversky died in 1996;
if he were still around, he surely would have shared in this year's
Nobel.) The article argued that in making decisions involving probability and
risk, people rely on mental shortcuts that "are highly economical and
usually effective but ... lead to systematic and predictable errors." It was
that last part that was so significant. That people make judgment errors
wasn't news, but if those errors were "systematic and predictable," well,
that was something an equation-wielding economist could get up and run with."

Regaled with Buffettania
http://www.forbes.com/home/opinions/2007/05/07/buffett-berkshire-omaha-oped-cx_bl_0507buffett.html
"Will global liquidity keep driving prices higher? The second-richest man
in America is "baffled by the liquidity sloshing around in the world. It's
hard to find very much fear. That's the trouble with a complacent world."
Chimed in Munger: "Eventually we'll have an event that will change
people's perception. We always do." What will it be? Privately, Buffett worries
about a debacle many times Long Term Capital's demise in 1998. He suggests
it will be many hedge funds all with the same highly leveraged positions
in derivatives that will be damnably hard--if not impossible--to unwind."

Watsa's foray at Torstar
http://www.canada.com/nationalpost/financialpost/story.html?id=9d2c7b02-be53-47ef-8306-5b32c46e921d
"What is he doing? That has been the reaction in some quarters to the
recent news that Prem Watsa's Fairfax Financial Holdings Ltd. has bought a
good-sized position in the class B nonvoting shares in Torstar Corp., a
company controlled by the owners of its class A voting shares. It's not known
what value investor Watsa plans to do with what is his first such foray, but
there are precedents for such activity."


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
Bank of Montreal (BMO)                          5   4   3   3   5    5
BCE (BCE)                                       3   4   4   5   5    5
Transalta (TA)                                  1   4   3   4   5    5
TransCanada (TRP)                               3   4   2   4   5    5
National Bank of Canada (NA)                    5   4   4   3   5    5
Enbridge (ENB)                                  3   3   5   3   5    5
Bank of Nova Scotia (BNS)                       4   3   3   2   5    5
Royal Bank (RY)                                 4   3   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
============================================== === === === === === =====
Bank of Montreal (BMO)                          5   4   3   3   5   3.3
National Bank of Canada (NA)                    5   4   4   3   5   3.4
Teck Cominco Limited (TCK.B)                    5   5   4   5   4   4.0
BCE (BCE)                                       3   4   4   5   5   4.1
CIBC (CM)                                       5   3   3   2   4   4.3
Bank of Nova Scotia (BNS)                       4   3   3   2   5   4.4
Royal Bank (RY)                                 4   3   3   2   5   4.9
Toronto Dominion Bank (TD)                      3   4   3   3   4   5.1
TransCanada (TRP)                               3   4   2   4   5   5.3
Sun Life (SLF)                                  4   5   4   2   4   5.6
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                                  P/E P/B P/D   G$   dG$(%)
============================================== === === === ====== ======
Teck Cominco Limited (TCK.B)                    5   5   4   61.24  29.58
ACE Aviation Holdings Inc. (ACE.B)              5   5   0   34.76  16.45
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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


Books for Stingy Investors

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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
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