Deep Value Investing: How The World’s Best Investors Beat The Market [Slides]

Deep Value Investing: How The World’s Best Investors Beat The Market by Tay Jun Hao LLB Law (Hons), The Asia Report

BP PLC

Why not learn adopt the strategies and habits of people who’ve already succeeded?

The Timeless Value Approach

• Leon Cooperman $3.7 Billion
• Edward Lampert $2.9 Billion
• Bill Ackman $2.5 Billion
• Howard Marks $2.0 Billion
• David Einhorn $1.9 Billion
• Seth Klarman $1.5 Billion

What is Deep Value?

Is it better to buy cheap companies at good prices, or wonderful companies at fair prices?

Results of Deep Value

Deep Value in Emerging Markets

Results of Deep Value

We must have earned an average of some 20 per cent per year from this source.... - Graham on buying stocks selling below liquidation value

Is Buffett a Deep Value Investor?

“You have to turn over a lot of rocks to find those little anomalies.

You have to find the companies that are off the map –way off the map.

You may find local companies that have nothing wrong with them at all…

Having a lot of money to invest forced Berkshire to buy those that were less attractive.

With less capital, I could have put all my money into the most attractive issues and really creamed it.”

The Heart of Deep Value Investing

If we avoid the losers, the winners will take care of themselves. - Howard Marks, Oaktree Capital

Annualized Gains of Funds –19% per annum net fees

Case Study: Popular Holdings

• Suffered a "loss" in 2009, mainly non cash charge
• Deleveraged balance sheet since 2009
• Core business was producing significant free cash flow

What’s Our Downside? - 2010 Annual Report

• Market Capitalization at 2011:

$130 Million, $0.16 per Share

See full slides below.