Exclusive Interview with Jae Jun
Jae Jun has a huge following in the financial blogosphere. His passion for value investing, automation, and usability has led him to create some incredible stock valuation spreadsheets. Any value investor should bookmark his blog, Old School Value.
If you had to describe your investment approach in a Twitter-style, 140 character (or so) sentence or post, what would it be?
Jae: Simple to understand businesses that are overlooked. The smaller the better. I love a good bargain.
What is the most important characteristic you look for in an investment?
Jae: Downside protection. Make sure the downside is protected and then the upside will take care of itself.
How important is behavioral finance in your investment approach?
Jae: Extremely. The most important aspect of behavioral finance is understanding yourself. Most people think they can handle volatility until a 20% drop hits them in the face and they don't know what to do.
What warning would you give any individual who wants to start investing in stocks?
Jae: It's always different between theory and practice. Understand yourself first. Playing poker will bring out your characteristics much quicker.
What tools and resources are commonly used in your investment approach?
Jae: Obviously my stock valuation spreadsheets, but other than that, the SEC filings. There are no shortcuts to success.
What is the most important lesson you've ever learned as an individual investor?
Jae: There is no such thing as getting rich quick. Fall in love with the process and journey, not the money.
Tuesday Links
Buffett owns some stocks in his personal portfolio that he doesn't own via Berkshire (Business Insider)
Analyze financial statements like Buffett (Old School Value)
Founder of Braeburn Group speaks: Apple ($AAPL) is undervalued (Posts at Eventide)
Recently named Best on the Street by the Wall Street Journal, Morningstar analyst Matt Coffina offers 2 picks: WellPoint ($WLP) and Express Scripts ($ESRX) (Morningstar) [video]
Daniel Sparks