Value Investing for

“Mere Mortals” Value Investing Congress

October 12 &13, 2010

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

S&P 500

Aquamarine Fund Inc

Comparison of changes in $100,000 invested in Aquamarine Fund Inc. vs S&P 500

8

14

•  Before Investing, run a checklist

•  Take buy and sell decisions when the market is closed

•  Buy to hold for at least two years

•  Reduce toxic relationships, increase productive ones

•  Create a distance from the “madding crowd”

•  Sequence information appropriately

•  Maximise positive feedback loops

•  Invoke useful circuit breakers

•  Great Useful Partnerships

•  Good Partners

•  Act like a great partner to find a great partner

Company  Name  Market  

Capitaliza2on  (US$)  

Enterprise  Value  

Dividend  Yield   Industry  

Shingakukai   $60     -­‐18.6   4%   Coaching  Schools  and  Sports  Clubs  

Clip  Corpora2on   $26     ~0   4%   Coaching  Schools  

Nippon  Road   186   -­‐32   4%   Construc?on  and  Engineering  

Nihon  Dengi   57   -­‐1.25   5%   Air  condi?oning  systems  

Daiichi  Kensetsu  Corp   125   -­‐28   3%   Construc?on  and  Real  Estate  

Hokkaido  Bus  Company   74   -­‐12   2%   Bus  Routes  

Otaki  Gas   73   6.7   2%   Gas  Distribu?on  

Heian  Ceremony  Service  Co.  

67   8   4%   Wedding  and  Funeral  Services