Value Investing United Technologies Announces Intention to Separate Into Three Independent Companies; Completes Acquisition of Rockwell Collins |
- United Technologies Announces Intention to Separate Into Three Independent Companies; Completes Acquisition of Rockwell Collins
- Assets Under Management vs Market Cap of invested companies.
- Ford and GM, how do they get our this mess
- U.S. Credit Outlook - The Bear Has Begun (Morgan Stanley)
- Appleseed Fund Annual Letter
- Collection of Articles by Mohnish Pabrai
- US vs. Europe: A Closer Look at US Outperformance
| Posted: 26 Nov 2018 04:20 PM PST |
| Assets Under Management vs Market Cap of invested companies. Posted: 27 Nov 2018 03:21 AM PST I have a few disparate thoughts on the subject that I'd like to throw out, which lead me to believe that the appropriate approach to early investment success is to focus on investments whose valuations are in the ballpark of your assets under management, roughly. So if your managing less than $1m, it might make sense to focus on companies valued below $50m. Some thoughts: Warren Buffett has said over and again that if he had less money to manage he would focus only on small companies. Successful investors tend to rise to the top rapidly, with more assets under management, investing in micro caps does not move the needle. Likewise, companies that provide research focus on clients that pay the most, clients that make the most money are looking at earning billions, not hundreds of thousands of dollars, so again you are in a less charted territory. The only investor whose name I see in the smallest of microcaps (sub $1m even) is Jim Simons. Obviously Jim's hedge fund is pure programmatic trading, and so it makes sense that the marginal effort for his computers to buy micro caps outweighs the cost. Small investors have less experience, and often these micro caps are the easiest to understand and analyze the value on the private market. Its hard to know what will drive a price correction in an undervalued small security, the general advice of buying a basket of them, continously buying them if they go down, be willing to hold for several years, and if possible, owning a significant enough portion of the company to influence management, are apparently some of the keys to succeeding in this environment. I'm curious how your guys experience has been investing in the smallest publicly traded companies. [link] [comments]  |
| Ford and GM, how do they get our this mess Posted: 26 Nov 2018 07:13 PM PST Both companies are highly levered in a declining auto sales and rising interest rate cycle. How do they get out this mess? F is trading 11x DEBT/EBITDA. How come the debt is only trading at 7% yield? Any one care to explain? [link] [comments]  |
| U.S. Credit Outlook - The Bear Has Begun (Morgan Stanley) Posted: 26 Nov 2018 05:44 AM PST |
| Posted: 26 Nov 2018 05:20 PM PST |
| Collection of Articles by Mohnish Pabrai Posted: 26 Nov 2018 09:23 PM PST |
| US vs. Europe: A Closer Look at US Outperformance Posted: 26 Nov 2018 05:29 AM PST |
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