By Tim Melvin
Have you read the book There's Always Something to Do by Christopher Russo-Gill?
If not, it should move right to the top of your summer reading list. It is the accumulated reflections of Peter Cundill. A Canadian value investor, Cundill used the Graham Deep Value Approach to return a little more than 15 percent, on average annually, to investors for almost 30 years.
Cundill once described his approach as looking to buy dollars for $0.40, and he focused almost entirely on the balance sheet. He once commented that he did liquidation analysis and liquidation analysis only. He wanted to buy stocks in companies that traded below where he estimated they could be profitably liquidated.
1. Things To Do
Cundill looked all over the world for ideas, and felt that most of the time he could find enough bargain issues to get his funds invested in such
The Fed is likely to start raising short-term interest rates in 2015, leading community bankers to wonder, "How much will this help me?" There is no generic answer, but it's clear that the typical community bank will reap a substantial one-time benefit.
The assumption behind this study is a one percentage point increase in the Fed Funds rate, which would impact virtually all short-term market rates by an equal amount. In my forecast, however, the rate hikes begin in May 2015, then move up gradually, ending 2015 one percentage point higher. Because of the ramping up of rates, it's inaccurate to apply the one-point rate hike to a full year's balance sheet. However, that method gives us a good ballpark estimate that can be adjusted upward or downward to fit an actual year of bank data.
The usual approach to looking at interest rate impacts begins with a static balance