Christopher Davis: Value Investing Opportunities Exist When A Company Is In The Headlines For Unfavorable Reasons

Johnny HopkinsChristopher Davis, Value InvestingLeave a Comment

Value investor Christopher Davis just released his 2018 Fall Review for the Clipper Fund. The Clipper Fund returned 6.1% in the first seven months of 2018, and over the last three years has slightly outperformed the S&P 500 Index with a cumulative return of 43% versus 42% for the index. Davis says active managers can still find opportunities in today’s … Read More

How Different Are Value Investors From Other Investors?

Johnny HopkinsValue InvestingLeave a Comment

Heres a great article by George Athanassakos at The Globe and Mail which discusses the personality traits of successful value investors and how value investors are different to other types of investors. Here’s an excerpt from that article: While the technical aspects of value investing – screening for and valuing low price-to-earnings ratio (P/E) or price-to-book ratio (P/B) stocks – … Read More

OSAM: Here’s Why Value Factors Will Continue To Provide An Edge For Long Term Value Investors

Johnny HopkinsJames O’Shaughnessy, Value InvestingLeave a Comment

One of the firms that we like to follow closely here at The Acquirer’s Multiple is O’Shaughnessy Asset Management (OSAM), which is run by Jim and Patrick O’Shaughnessy and their team. OSAM recently released it Q218 Shareholder letter which provides some great insights on the future of value investing and why OSAM will continue to use value factors as the cornerstone of … Read More

Bill Nygren’s Oakmark Funds Says Inactivity In Investing Remains The Optimal Strategy

Johnny HopkinsBill Nygren, Value InvestingLeave a Comment

One of the investor’s we follow closely here at The Acquirer’s Multiple is Bill Nygren. Nygren has been a manager of the Oakmark Select Fund since 1996, Oakmark Fund since 2000 and the Oakmark Global Select Fund since 2006. He is also the Chief Investment Officer for U.S. Equities at Harris Associates. This week The Oakmark Funds released a great … Read More

Mario Gabelli: We’ll Use The Same Guiding Principles To Avoid Over-Paying For A Company’s Intrinsic Value And Lose Less During Market Manias

Johnny HopkinsMario Gabelli, Value InvestingLeave a Comment

One of the investors we follow closely here at The Acquirer’s Multiple is Mario Gabelli, Founder, Chairman and CEO of GAMCO Investors, Inc. Gabelli recently did a Q&A session with some folks at Reddit which provided some great value investing insights. Here’s an except from the thread on Reddit: Hello Reddit! I’m Mario Gabelli, founder, Chairman and CEO of GAMCO Investors, … Read More

Sequoia Fund: A Great Value Investing Mindset Creates A Substainable Advantage

Johnny HopkinsSequoia Fund, Value InvestingLeave a Comment

One of the value investing firms that we follow closely here at The Acquirer’s Multiple is Ruane, Cunniff & Goldfarb (RCG), the investment adviser best known for managing the Sequoia Fund. RCG recently released its Q2 2018 Investor Letter. For the second quarter of 2018, Sequoia Fund generated a total return of 5.80%, net of fees, versus a 3.43% return for … Read More

Mason Hawkins: Real Value Investing Has A Humility Not Present In Today’s More Popular Method Of Heavily Weighing The Qualitative Factors Of The Business And Minimizing The Importance Of Valuation

Johnny HopkinsMason HawkinsLeave a Comment

One of the value investors we like to follow closely here at The Acquirer’s Multiple is Mason Hawkins, Chairman and Chief Executive Officer at Longleaf Partners (Longleaf). Last week Longleaf released its Q218 Shareholder Letter which contains a number of warnings for today’s investors saying: “Managers who say convincingly today that value does not matter much at their holdings because the … Read More

Is David Einhorn’s Underperformance A Sign That Value Investing Is Set to Return

Johnny HopkinsDavid Einhorn, Value InvestingLeave a Comment

Here’s a great article at CNBC which discusses the similarities between David Einhorn’s current performance and that of Julian Robertson’s Tiger Management back in 1999/2000. In terms of what Einhorn’s current performance means for the future of value investing, the article makes the following point: “The down-on-his-luck investor [Einhorn] may take comfort in history, however. Fellow value-style champion Julian Robertson … Read More

Is It Time For Value Investing to Return to the Limelight?

Johnny HopkinsValue InvestingLeave a Comment

Here’s a great article from Peter Langerman at Franklin Templeton Investments where he discusses an optimistic outlook for value investing. Here’s an excerpt from that article: We believe macroeconomic developments in the United States and elsewhere could prove a fillip to value investing after several years of underperformance. The combination of suppressed interest rates and low volatility has contributed to … Read More

Jim O’Shaughnessy: 25 Timeless Lessons From 30 Years Of Value Investing

Johnny HopkinsJames O’ShaughnessyLeave a Comment

One of our favorite value investors here at The Acquirer’s Multiple is Jim O’Shaughnessy. O’Shaughnessy recently wrote an awesome series of tweets detailing twenty five investment lessons that he’s learned over thirty years of value investing. They’re a must read for all investors. With Jim’s permission here are his twenty five timeless investing lessons: 1/ I have been a professional … Read More

Seth Klarman: Successful Value Investing Requires A Multi-Strategy Approach

Johnny HopkinsSeth Klarman, Stock ScreenerLeave a Comment

Back in 2008 Columbia Business School celebrated the 75th anniversary of the publication of Benjamin Graham and David Dodd’s Security Analysis. The anniversary celebration, hosted by the Heilbrunn Center for Graham & Dodd Investing, consisted of a symposium featuring contributors to the sixth edition of Security Analysis, including David Abrams, Bruce Berkowitz, James Grant, Glenn Greenberg, Bruce Greenwald, Roger Lowenstein, Howard  … Read More

Barron’s: Are Value Stocks Ready To Grow Again

Johnny HopkinsValue InvestingLeave a Comment

Here’s a great article from Barron’s which discusses the future of value investing. Here is an excerpt from that article: Quick: Name a famous investor. Whether you thought of a celebrity like Warren Buffett, a less famous (but no less successful) hedge fund manager like Seth Klarman, or reached into the past for the likes of John Templeton or even … Read More

Forbes: Market Shift Coming – Value Stocks Overtake Growth In 2018

Johnny HopkinsValue Investing NewsLeave a Comment

Here’s a great article at Forbes that discusses the possibility of value investing overtaking growth in 2018. Here’s an excerpt from that article: Since March 2009, growth and value stocks have pushed the U.S. stock market forward, with the two categories swapping leadership along the way. Until 2017, that is, when growth left value in the dust. Now it looks … Read More

Market Volatility Is A Value Investor’s Best Friend

Johnny HopkinsValue Investing NewsLeave a Comment

Here’s a great article by Gary Smith at MarketWatch. Smith, the author of “Money Machine: The Surprisingly Simple Power of Value Investing” illustrates how market volatility provides great opportunities for value investors saying: “In fact, stock market volatility is a value investor’s best friend. Stock prices fluctuate far more than justified by the underlying fundamentals, in that the volatility of … Read More

Seth Klarman – Value Investing Is A Large-Scale Arbitrage Between Security Prices And Underlying Business Value

Johnny HopkinsSeth KlarmanLeave a Comment

The one book that all investors should read is Margin of Safety, by Seth Klarman. A new copy of Klarman’s book is going to set you back around $1000 on Amazon and used copies can be bought for around $750. But it’s money well spent if you wish to be a successful value investor. There’s a great piece in the … Read More

Successful Investing Is Achieved By Studying Other Successful Investors Who Do Things Very Differently To You – Bill Nygren

Johnny HopkinsBill NygrenLeave a Comment

One of the value investing firms that we follow closely here at The Acquirer’s Multiple is Oakmark Funds and portfolio manager, Bill Nygren. Nygren is a value investor who focuses on companies trading at what he considers to be a substantial discount to their true business value. He has been a manager of the Oakmark Select Fund since 1996, Oakmark Fund … Read More

Value Investing Woes Reflect Anxiety Among Equity Buyers

Johnny HopkinsValue Investing NewsLeave a Comment

A recent article at the Financial Times attempts to explain the present level of anxiety amongst equity buyers using the current value investing environment as an example: Here’s an excerpt from that article: It has become commonplace to ask how stock markets can be rallying when the world is confronted by so much uncertainty. Financial factors such as interest rates … Read More

Is Value Investing Broken? – Morningstar

Johnny HopkinsValue Investing NewsLeave a Comment

Just finished reading a great article titled – Is Value Investing Broken? – at Morningstar. The article demonstrates that while a value investing strategy can be difficult to stick to at times, it’s still a commonsense strategy that outperforms over time, based on the principle: cheap stuff outperforms expensive stuff over the long term. Here’s an except from the article: … Read More

Value Investing Having Its Worst Run Since The Financial Crisis – WSJ

Johnny HopkinsValue Investing NewsLeave a Comment

If you’re wondering why your value investing strategy is under-performing you’ll be interested in this interview by Charlie Turner at Your Money Matters and The Wall Street Journal’s Steve Russolillo regarding the current under-performance of value investing. Russolillo says value funds globally are on track to post their worst performance this year … relative to growth funds since before the financial … Read More

Seth Klarman – The Real Secret To Investing Is That There Is No Secret To Investing

Johnny HopkinsSeth KlarmanLeave a Comment

One of our favorite investors here at The Acquirer’s Multiple is Seth Klarman and one of the best articles ever written by Klarman is the comprehensive preface that he wrote in the 6th Edition of the value investing bible, Security Analysis. In his closing thoughts Klarman explains that as long as human beings chase instant wealth and effortless gain, value … Read More