Jeff Auxier, Auxier Focus Inv (MUTF:AUXFX)– ‘Value of Cumulative Research (Over Time)’
Jeff is the founder and portfolio manager for Auxier.
The Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More
* Influences:
o Call to Buffett in 1982
o Graham – ‘The Intelligent Investor’, SEC Filings, Annual reports
o Templeton – ‘The Humble Approach’
o Fisher – ‘Conservative Investors Sleep Well’
o Robert Pamplin – Pres. of Georgia Pacific (Jeff’s first job was mowing for him)
* Frame work to endure
o Rational business approach
o Margin of Safety
o Double play (dividends + depressed price) vs. torpedo
* Investing – craft of the specific
o Focus on the important and knowable
o Determining odds of outcomes
o Price dictates capital allocation
o Get away from Wall Street
o Long term focus is invaluable
o Ego & emotion are the enemy (Isaac Newton & South Sea Bubble)
o Compounding most underappreciated concept
* Understand accounting – the language of business
o Importance of ledgers
o lesson from Pamplin – your brain is the calculator
o Ben Franklin – the idea of a ‘moral ledger’ as well
* Misperception of risk
o Buffett quote – risk is not knowing what you are doing….
o Carlos Slim quote – I never take risk
o In 2009, the distressed debt market had 50% loss protection (1930’s worst case was 5%)
o Diversification does not work when there is easy money and assets are inflated
o Research the entire capital structure (could go to 0)
o Adequate compensation for risk taken
o Risk of easy money bubbles
o Avoid hottest companies in hottest industries
o Want inspired management in an uninspired industry
* Crisis is Opportunity
o Since 1947, recessions occur less than 5% of time
o 91′-98′ Small Banks were #1 asset class
* Q&A
o Best ideas now?
* Tesco at less than real estate value
o How many stocks do you hold?
* Normally 20-30
o When should you sell?
* At estimate of full value
o What do you like about Avon?
* Going into emerging markets, where they will have more consumption
Value Investor Conference: Omaha, Nebraska – May 4th, 2012
Dustin Hunter, SunRift Capital Partners (www.sunriftcp.com)
(These notes are to the best of my recollection.)
Updated on