Value Investing Who are some investors like Michael Burry who came from outside the industry and how did they transition?

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• Who are some investors like Michael Burry who came from outside the industry and how did they transition?
• Valuing an Oil and Gas Company
• This concept that investing is like “owning” a piece of the business

Who are some investors like Michael Burry who came from outside the industry and how did they transition? Posted: 07 Feb 2019 08:10 PM PST submitted by /u/boundlessfrombelow [link] [comments]

Valuing an Oil and Gas Company Posted: 07 Feb 2019 09:44 AM PST Hi all, ​ Wanted to ask some help in trying to value an Oil and Gas Company. I'm trying to value a small oil and gas E&P in Australia. I'm trying to do a Net Asset Valuation and have looked up the average Oil price and average gas price and used production to deplete the reserves year by year to get the revenues. I tried to use the cost of sales from the annual report as the cost of production. And used a decline rate of 5% for gas and 10% for oil, though it's shale and I'm not sure if that's too low. I have tried to minus the capital expenditure while adding back the depreciation and amortization. As would be done for a normal company. Hope that's correct? After using a discount rate of 10% to get the cash flows, I've managed to get a valuation. I had a few questions, I wanted to ask ​ Are those decline rates okays? Are there any good sources to find decline rates? Is the method I used above to get the Free Cash Flows to discount by okays? The oil and gas accounting is a bit different so I've been trying to figure it out. The valuation I did based on 1P is very low and on 2P it's also a fraction of the market price. I am guessing this may be because the company has added reserves every year for the past few years and the market may also be pricing in higher future oil and gas prices. Is NAV usually a good valuation tool? Using relative valuations (P/E multiples, P/Reserves multiples don't seem to make as much sense for a value investor). Would it make more sense to try to factor in the number of reserves they'll keep adding in the next few years? I googled and found that some companies supposedly list PV10 estimates? but when I looked up a few annual reports, I couldn't find any of these? I had to make rough estimates of the cost of producing oil vs producing gas, let along selling them. Any guidance on this would be great Sorry for the long list of questions, but any info would really help! Please do guide me to any resources, books or otherwise ​ Thanks! ​ submitted by /u/Cardzilla [link] [comments]

This concept that investing is like “owning” a piece of the business Posted: 07 Feb 2019 07:41 AM PST I find this hard to digest although I know Buffett and all say that's how you have to think of an investment. But the word owner really implies some level of control or at least influence over the decisions of a company or asset, which isn't the case when you own 0.000001% of a public company. This is my issue with this analogy. How can I be expected to think like an owner of a public company when I have none of the levers that an actual owner enjoys? submitted by /u/time2roll [link] [comments]

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