money jungle

Mark Sellers Interview: “Figure Out What the Problem Is”

Posted in mark-sellers, value investing by moneyjungle on January 9, 2009

The first thing we do is figure out what the problem is. Ninety percent of making money in stocks is not losing money, which has to do with knowing what the problem is and how it can be solved. Every company we buy has a problem with it, otherwise it wouldn’t be cheap.

We read sell-side reports, SEC filings, and talk to management. Within one or two days, we decide if we’re comfortable that the company can solve the problem. Then we do another week or so of further research.

Until recently, Mark Sellers, a former morningstar analyst, ran a small value porfolio that returned 35%. This motley fool interview covers several aspects of his investing process, including evaluating management, thinking in terms of decision trees, when to sell, and portfolio concentration.

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