There’s a spectacular interview on ft.com today with my favorite FT journalist John Authers with Bruce Greenwald who teaches Ben Graham’s value investing course at Columbia.

Bruce talks about behavioural finance and the irrationality of investors, the often ignored mathematical realities of the market, the brutality and danger of short selling (all short sales are treated as short term capital gains), the power and value of franchise and much more!

I love his constant reminder of what value actually means: First look at the balance sheet, then current earnings ignoring growth.

He does a great fast analysis of why even value investors got caught with Fannie and Freddie because they misanalysed the balance sheet.