Valuation Ideas

April 11, 2018 – For under $3, this short and sweet e-book called How to Become a Better Investor by Greg Speicher is a great little pocket book on all things you should do to be a disciplined investment process. I’ve written down the key takeaways and posted on my wall to remind myself the steps I have to take everyday to continually better the investment process. Speicher provides 10 tips on how to become a better investor. For obvious copyright reasons, I won’t recite them here, but the biggest key takeaways for me are: (1) Write down your investment process and record everything meticulously – analyze your process and performance in detail and keep finding areas where you can keep tweaking and improving. (2) Use a checklist. (3) Have a repertoire of reading material and news flow to turn over as many rocks as possible for investment ideas. 10-15 minute reading, worth the $3.

April 10, 2018  Another great episode of Adventures in Finance. Key takeaway for analyzing leadership – when there’s a crisis, how do leaders react? Good signs: the leaders overcompensate to resolve the issues, they stick to the objective despite public scrutiny. Red flags: they avoid directly apologizing, they have hubris (C-suite leadership books).

April 5, 2018 – Last week’s Bloomberg View podcast episode with Barry Ritholtz was a good one if you are interested in emerging markets. Barry interviewed James Donald, the veteran portfolio manager at Lazard, who’s been involved in emerging markets since the 80s. Click here to listen to the podcast and/or read the transcript. Although I’m not an EM investor, his approach is that of a long-term view, disciplined value investing, so I was very keen to get his current take on the markets. My 2 key takeaways from his interview are: (1) emerging market equities are still at 30% discount to developed market equities. (2) The last 5-6 years, markets have been dominated by macroeconomic factors. He believes that at some point in the future, the markets will shift their focus away from macroeconomics and become more idiosyncratic and stock-focused. Good for value investors. Less exogenous macroeconomic shocks in the way of fundamental analysis. If true, should be motivation for fellow value investors to continue to do the analysis and due diligence and remain patient.