Hottest links for Thursday, January 30th, the late edition (see Wednesday’s edition here). Get our free daily newsletter (which HAS BEEN RECENTLY UPDATED) and never miss a single linkfest. Also, now if you sign up you will get our new e-book on value investing.
Top stories for today can be found below. Some great stories to get you through another cold Thursday, including a close look at DCF models, the end of Scout Capital, and the SEC coming after Twitter-based newsletter sellers.
Hottest Links: Stories
Wally Weitz On Value Investing
There's a gold rush coming as electric vehicle manufacturers fight for market share, proclaimed David Einhorn at this year's 2021 Sohn Investment Conference. Check out our coverage of the 2021 Sohn Investment Conference here. Q1 2021 hedge fund letters, conferences and more SORRY! This content is exclusively for paying members. SIGN UP HERE If you Read More
Wally Weitz manages more than $5 billion in client money in much the same vein as a more well-known investor who operates out of Omaha, Nebraska: find good businesses that trade for less than their worth and bet big on them. [Steve Schaefer, Forbes]
How accurate are DCF models?
The Discounted Cash Flow model is one of the most useful and commonly used valuation methods for businesses. It gives the investor a Net Present Value (NPV) of all future free cash flows expected into a company. [Investing Sidekick]
Thoughts on Emerging Markets, Contrarian investing and Circle of competence
The momentum of Emerging markets carried them over the Eurozone crisis up until the end of 2012. Interestingly, even after first warning signs emerged like falling commodity prices, free-falling orders for companies like Caterpillar Inc. (NYSE:CAT), the Batista bankruptcy etc. last year, the story of the “Emerging market consumer” and the swift transformation from investment led economies into happy consumer countries seemed to be still alive. [Memyselfandi007, Value And Opportunity]
What Does Siegel’s NIPA P/E Say About the Stock Market?
Siegel’s basic argument is that due to accounting changes Shiller’s CAPE is misleading. I actually have no problem with his arguments, they make a lot of sense to me. [Meb Faber]
Scout Capital Closing as Founders Split Ways
Earlier this morning, ValueWalk heard that Scout Capital would be closing its hedge fund, which we could not independently confirm. ValueWalk has now confirmed that the $7 billion firm, which had fantastic returns last year, is closing due to differing views among co-founders Adam Weiss and James Crichton. [ValueWalk]
Closed end funds: when is a discount not a discount
As I was looking around the investing universe for possible underpriced securities over the past couple of months I happened upon a number of closed-end funds trading at significant discounts to net asset value (NAV). [Long Term Value Blog]
Chief investment officers
There has been a lot happening at PIMCO. Although Mohamed El-Erian is still listed on the website as co-chief investment officer, he resigned eight days ago. Now there are six new deputy chief investment officers. [Tom Brakke, Research Puzzle Piece]
Cardinal Ethanol at 72% of book, a P/E of 3 and high yield
When a company’s shareholder count crosses a certain threshold they are required to file with the SEC, which is the case for Cardinal Ethanol LLC (OTCMKTS:CRDE). The company also provides a nice newsletter on their website with a short and useful management statement about business conditions. [Nate Tobik, Oddball Stocks]
Odey Starts Wolfson Microelectronics Stake
Crispin Odey’s firm Odey Asset Management has disclosed a new position in London listed Wolfson Microelectronics plc (LON:WLF). [Market Folly]
Kiss of Death
The first mutual fund to cover the 3D printing and additive manufacturing space was announced Wednesday by Outlook Trust Funds. The fund is also the first to be launched by Outlook Trust and is managed by 3D Printing Fund Advisors, which lists Alan M. Meckler as its lead portfolio manager and John M. Mecler as co-portfolio manager. [Joshua M Brown, The Reformed Broker]
Dear Twitter-Based Newsletter Sellers: The SEC Is After You
Now that Twitter Inc (NYSE:TWTR) is officially the second coming of Yahoo Finance message boards, the inundation with offers from clueless hacks who have nothing better to do than sell you $29.95 newsletters with guaranteed get rich quick schemes.. [Tyler Durden, Zero Hedge]
Comparing Emerging Market Selloffs: 2010-2014
As the emerging world experiences its fifth broad stock market selloff in as many years we thought it timely to review just what happened during the previous four selloff instances so we can have a better idea of what to expect from both EMs and DMs in the current rout. [GaveKal Capital Blog]
Hottest Links: Not The Onion
Woman Gives Birth to Children, Discovers Her Twin is Actually the Biological Mother, But She is Technically Her Own Twin
A Washington state woman was shocked when she was told that the children she gave birth to were not her own. It turned out that her twin was actually the biological mother of her children, and this only led to more confusion because she didn’t have a twin. In the end, it was discovered that the woman was in fact her own twin, confirmed by doctors to be a rare medical condition. [Dominic Kelly, Opposing Views]