Mario’s Millennial Mondays discussing what GAMCO does differently.
In August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More
Investing Benefits: What GAMCO Does Differently
Hey guys. Welcome back to another episode of Mario's millennial Mondays.
So far fellow interns have discussed what exactly investing is and why investing is something that can benefit you in the long run.
Then we discuss the importance of diversification and the benefit of investing in mutual funds. With his general knowledge some of you are probably wondering what this group could do differently. Good question.
At GAMCO. We focus on value investing which is founded on the notion of buying something for less than it's worth. Everyone loves a discount right.
And on top of that value investing we Geko analysts we call it private market value. I met a Columbia Business School credit to our CEO Mario Gabelli.
We invest primarily in the equities of cash generating franchise companies selling the public market at a significant discount to our appraisal of their PMC. Which raises the question What does that mean.
Q Explain Pavy PNB stands for private market value as we define it. PNB the value of industrialist or private buyers would pay to purchase assets with similar characteristics. Some of them are saying that we invest in publicly traded franchise companies that we believe are worth more than what their sideboard. Do your analysts know a lot about the companies you invest in Italy.
Our approach to investing is research driven. Each analyst has a certain industry he or she follows. They review publicly available information like annual and quarterly reports to get an idea about companies we can potentially invest in.
We are talking service level research here. Our analysts are experts in their industries and this research doesn't stop at the office. They're constantly visiting companies and their management to get a full view of what they offer.
This is how we find companies that we believe are trading at a significant discount.
What is a catalyst a catalyst or change the company that helps service their value and drives the company's public price. It's what we think their private market value is and accountants can be a number of things.
Things like regulatory changes changes and management that I'm a founder of a division or a repurchasing of shares could all classify as a catalyst.
So to summarize our investment process is the point of business accumulating knowledge about the company and then use that knowledge to value the company identify a catalyst. There's tons of different ways to invest in companies. What is with the House approach.
put the value investing has withstood the test of time. Investors have had significant returns with this method for years. Not to mention some of the most notable investors such as Warren Buffett Peter Lynch and their own CEO Margaret Gabelli are all value investors.
Also the great thing about value investing is the margin of safety that comes with it. Sincerely like companies that we invest in sell a discount even at the stock price falls or losses will be substantial.
On the other hand if Catalyst surfaces the value of the company we stand to make a significant return.
Therefore we are upside potential and downside protection. We hope this video helps you understand a little bit more about GAMCO investment process. And value investing in general to learn more. Feel free to visit us at Gabelli dot com. Call us at 1 800 Cavelli or follow us on Instagram and Twitter.