Today, I came across a bunch of letters from a relatively unknown hedge fund called Arlington Value Management. The fund is run by a guy called Allan Mecham and the fund has delivered phenomenal returns throughout.
Here’s an absolute gem of an excerpt from a 2011 letter:
I disagree with the notion that more information is always better. Resisting the urge to act, and
maintaining focus, while sifting through the torrential flow of information – much of it noise
(newsletters, blogs, internet articles, newspapers, SEC filings, investor conferences, message
board fodder, and subscriptions of all types) – is often more challenging than the nuts and bolts
of business analysis. The steady surge of information coupled with short-term performance
pressures can push rational long-term investing to the brink of extinction. The easy access to
information, and snack-bar nature of consuming it, suggests that disciplining one’s temperament
rivals the need for energy and action.
There’s plenty of wisdom in their letters. You can check them out here: