Value Investing Nuggets – Graham & Doddsville Newsletter – Winter 2017

One of the best resources for value investors are the Graham & Doddsville Newsletters. The G&D newsletter is an investment publication from Columbia Business School (CBS) full of value investing nuggets and is co-sponsored by the Heilbrunn Center for Graham & Dodd Investing and the Columbia Student Investment Management Association (CSIMA).

The most recent edition includes:

Kingston Capital Management – Michael Blitzer and Guy Shanon of Kingstown Capital Management discuss the benefit of longer time-horizons in special situation investing. They also share insights regarding complicated and overlooked situations, including international privatizations.

Charlie Munger: Invert And Use “Disconfirming Evidence”

Charlie MungerCharlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More


 

Ariel Investments – Rupal Bhansali of Ariel Investments shares her perspective on applying fundamental value investing to international opportunities. The CIO of International & Global Equities applies the lessons of Warren Buffett as well as George Soros, whose concept of reflexivity is critical for understanding financial crises.

ValorBridge Partners – Simeon Wallis of ValorBridge Partners discusses the unique opportunity to redeploy cash flows from the company’s primary portfolio company, ApolloMD, into public and private investments. This flexibility allows the organization to beneficially allocate capital to the most attractive opportunities and to share valuable insights across asset classes.

Mercator Fund – Jared Friedberg of Mercator shares how a family office can use its permanent capital to benefit from special situations and long-term compounders. Additionally, the company can creatively invest across the capital structure, to find value “obscured by complexity.”

Studness Capital Management – Charles Studness and Roy Studness of Studness Capital Management demonstrate the benefits of investing in negatively correlated industries: utilities and banks. The family of investors combine their industry specializations to invest opportunistically in these two domains.

You can read the entire newsletter here:

https://www.scribd.com/document/339230267/Graham-Doddsville-Winter-2017

This article was originally posted by Johnny Hopkins at The Acquirer’s Multiple.

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The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates. It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization. The Acquirer’s Multiple® is calculated as follows: Enterprise Value / Operating Earnings* It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by Tobias Carlisle, founder of acquirersmultiple.com. The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up. Tobias Carlisle is also the Chief Investment Officer of Carbon Beach Asset Management LLC. He's best known as the author of the well regarded Deep Value website Greenbackd, the book Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law. Articles written for Seeking Alpha are provided by the team of analysts at acquirersmultiple.com, home of The Acquirer's Multiple Deep Value Stock Screener. All metrics use trailing twelve month or most recent quarter data. * The screener uses the CRSP/Compustat merged database “OIADP” line item defined as “Operating Income After Depreciation.”