Bram De Haas About Poker, Investing And Value

Nov. 12, 2015 9:46 AM ETARO, FGH, DWA, ESSX, ZAGG3 Comments
Ruerd Heeg profile picture
Ruerd Heeg
3.38K Followers

Summary

  • Bram de Haas is a productive author on Seeking Alpha, carefully analyzing value stocks that are consistently good picks.
  • His investment style is heavily influenced by his former life as a poker player.
  • Here are among others his thoughts on how he judges the value of investments.

Bram de Haas is an author on Seeking Alpha with consistently good picks. He is also a value investor. His picks are almost never-expensive-looking companies by metrics like P/E, P/B, etc, unless of course they are short picks. He seems to be mostly interested in small companies. In his articles, he does a good job analyzing the stock. See for instance his recent article on Ballantyne Strong (BTN). His articles sometimes move the stock. His first article on ZAGG was one of them.

What I always find interesting is how other investors come up with ideas. What do they investigate and what not. And how they value assets, income and events. Recently, I got a message from Bram with a link to a free premium research article. These are interesting deep value stocks as well. I took the opportunity to ask him some questions.

Q: I think investors can learn a lot from good poker players. And you were one of them. Can you tell me how it influences your investment style, for instance what you do what others don't and what you don't do what others do?

A: The other way around it is also true. Good poker players and good investors end up with a very similar framework of how to approach their respective crafts. It is difficult to say how it influences my investment style because I would almost say that my approach to investing is built on a poker foundation. The core principles are similar. I belong to the value investing school I guess. That is already a subset of investors that takes a different approach to investing. Perhaps one difference is that Graham's Margin of Safety idea does not resonate as much with me as the expected value approach.

Mauboussin wrote about how it applies

This article was written by

Ruerd Heeg profile picture
3.38K Followers
As a mathematician (Ph.D.) I use 7 quantitative strategies with statistically extremely high returns. I select these cheap companies with software comparing thousands of global stocks on value metrics, liquidity, quality metrics, and momentum. I focus on global nanocaps and net-nets. Check Turning Rough Stones: turningroughstones.substack.com

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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