"All intelligent investing is value investing - to acquire more
than you are paying for. Investing is where you find a few great
companies and then sit on your ass."  - Charlie Munger


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

Top 20 questions from 2007's meeting
http://www.jvbruni.com/Berkshire%202007annualmeeting.pdf
"The measurement of volatility: it's nice, it's mathematical, and wrong.
Volatility is not risk. Those who have written about risk don't know how to
measure risk. Past volatility does not measure risk. When farm prices
crashed, [farm price] volatility went up, but a farm priced at $600 per acre
that was formerly $2,000 per acre isn't riskier because it's more volatile.
[Measures like] beta let people who teach finance use the math they've
learned. That's nonsense. Risk comes from not knowing what you're doing.
Dexter Shoes was a terrible mistake. I was wrong about the business, but not
because shoe prices were volatile. If you understand the business you own,
you're not taking risk. Volatility is useful for people who want a career
in teaching. I cannot recall a case where we lost a lot of money due to
volatility. The whole concept of volatility as a measure of risk has
developed in my lifetime and isn't any use to us."

Fairfax braces for meltdown
http://www.thestar.com/columnists/article/217898
"Prem Watsa says investors around the world are not being paid enough for
the inherent risk in stocks, bonds and real estate. The chair of Fairfax
Financial Holdings Ltd. is not crying poor for successful capitalists like
himself, though. He is sounding a warning call to investors, big and small.
The renowned but recently embattled sleuth of under-valued assets . an
acolyte of Depression-era investment theorist Benjamin Graham . has acted on
his concern to protect his stable of general insurance and re-insurance
companies."

Why bubbles are great for the economy
http://www.slate.com/id/2165929
"If you blew the kids' college fund on Pets.com stock back in 2000, or
dropped $800,000 last year on that spec house in Phoenix that you knew you
could flip for $1.4 million, you probably won't believe me when I say:
Investment bubbles are great for the economy. Yes, those periodic outbursts of
investor insanity, which inevitably degenerate into venality, corruption,
and searing losses - America needs them!"

Buffett's Squanderville all maxed out
http://www.theage.com.au/news/business/buffetts-squanderville-all-maxed-out/2007/05/23/1179601487552.html
"Buffett makes his point with an economic model dressed as storytelling. He
invites his audience on "a wildly fanciful trip to two isolated,
side-by-side islands of equal size, Squanderville and Thriftville".
Squandervillians live it up by borrowing from Thriftville - something they can keep
doing until they've mortgaged all their assets, including their land. This
process could go on a long time before the market forces an adjustment. And
by then, what damage might have been done to Squanderville's economic
future, not to mention its strategic position with its financier Thriftville"

Picks from Berkshire's portfolio
http://news.morningstar.com/article/printArticle.asp?id=194490
"At this year's Berkshire Hathaway annual shareholders meeting, Buffett
said that when analyzing securities at Berkshire, they favor companies where
they can have a very good idea of what the business will look like down
the road. What's more, he said that when Berkshire looks to buy a business
or stock, it wants to purchase those that have earned--and can continue to
earn--high returns on capital for owners."

Not-to-be-missed tips for value hunters
http://www.ft.com/cms/s/cfa86a18-0559-11dc-b151-000b5df10621.html
"Given that the first step to successful investing is knowing which ponds
to fish in, here are the 15 most common types of value opportunities I have
been able to capitalise on in my investing career"


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)                                   2   2   1   5   5    5
Bank of Montreal (BMO)                          4   4   3   3   5    5
BCE (BCE)                                       3   3   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   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   5   4   5   4   3.3
National Bank of Canada (NA)                    5   4   4   3   5   3.6
Bank of Montreal (BMO)                          4   4   3   3   5   3.9
Biovail (BVF)                                   2   2   1   5   5   4.3
Bank of Nova Scotia (BNS)                       4   3   3   2   5   4.5
CIBC (CM)                                       5   2   3   2   4   4.5
BCE (BCE)                                       3   3   4   5   5   4.6
Royal Bank (RY)                                 4   2   3   2   5   4.8
TransCanada (TRP)                               3   4   2   4   5   5.2
Sun Life (SLF)                                  4   5   4   2   4   5.4
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   61.32  42.07
Lundin Mining Corporation (LUN)                 5   5   0   14.02   8.59
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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


Books for Stingy Investors

Relative Dividend Yield
by Anthony E. Spare

Anthony Spare searches for value stocks using relative dividend
yield which is the ratio of a stock's dividend yield to the
average yield of the market. Spare's approach is to buy dividend
stocks near a peak in relative dividend yield and to sell them near
the lows. Although dividend-oriented investors will enjoy the
book, its cover price of $92.95 makes it a little dear. So, buy
the book at a sharp discount or borrow it from your local library.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0471327050/


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 03/31/2007)
  Average Capital Gain    Average Holding Period
    Sold Stocks: 75.5%      Sold Stocks: 2.1 Years
    All Stocks: 51.5%       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.