80 Tips about Value

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We firmly believe no investment is so wonderful that it can’t be ruined by a too high entry price, so on our discount-to cash-flow stocks we will...
One of the big mistakes value investors can make is to be too enamored with absolute cheapness. If you focus on statistical cheapness, you’re often...
Dreman Value Management has research that shows something like 40% of all earnings announcements are “surprises.” Overreactions to those surprises...
I’m probably more willing to pay up for quality than other value investors might be. Some of my investor friends often tell me my ideas are “too...
We focus first on good businesses, with high returns on capital, barriers to entry and significant free cash flow generation over a cycle. If you're...
Tags: value, business
Just missing a product cycle is generally fixable. So are problems that result from a company outgrowing its infrastructure – it’s a high-class...
In probably 90% of the cases we use 15x as our target multiple of normalized free cash flow. That has been the average for American stocks over the...
Our sweet spot tends to be in the $2-3 billion range, where the companies are clearly established but can still be under the radar. We also can get a...
If I didn’t have partners, the concentration [65% of the portfolio in the top seven stocks] would be even higher. A company compounding capital at...
We like looking at multi-segment businesses where it’s a bit more complicated to analyze all the parts and there’s not an obvious answer to the...
Tags: value, business, worth
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