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Deep Value Investing:How The World's Best Investors Beat The Market
Tay Jun Hao LLB Law (Hons)theasiareport.com
BP PLC
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BP PLC
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Copyright 2015 @ The Asia Report
Why not learn adopt the strategies and habits of people
who’ve already succeeded?
Off to the Race Tracks
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• Leon Cooperman $3.7 Billion
• Edward Lampert $2.9 Billion
• Bill Ackman $2.5 Billion
• Howard Marks $2.0 Billion
• David Einhorn $1.9 Billion
• Seth Klarman $1.5 Billion
The Timeless Value Approach
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Copyright 2015 @ The Asia Report
Is it better to buy cheap companies at good prices, or wonderful
companies at fair prices?
What is Deep Value?
Copyright 2015 @ The Asia Report Image Source; Tweedy Brown, What Has Worked in Value Investing
Results of Deep Value
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Deep Value in Emerging Markets
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We must have earned an average of some 20 per cent per year from this source....
- Graham on buying stocks selling below liquidation value
Results of Deep Value
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Results of Deep Value
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Is Buffett a Deep Value Investor?
“You have to turn over a lot of
rocks to find those little
anomalies.
You have to find the
companies that are off the
map – way off the map.
You may find local
companies that have
nothing wrong with them at
all…
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Is Buffett a Deep Value Investor?
Having a lot of money to
invest forced Berkshire to buy
those that were less
attractive.
With less capital, I
could have put all my
money into the most
attractive issues and
really creamed it.”
If we avoid the losers, the winners will take care
of themselves.- Howard Marks, Oaktree Capital
Annualized Gains of Funds – 19% per annum net fees
The Heart of Deep Value Investing
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Case Study: Popular Holdings
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Case Study: Popular Holdings
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Case Study: Popular Holdings
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• Suffered a "loss" in 2009, mainly non cash charge
• Deleveraged balance sheet since 2009
• Core business was producing significant free cash flow
Case Study: Popular Holdings
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What’s Our Downside? – 2010 Annual Report
• Market Capitalization at 2011:
$130 Million, $0.16 per ShareCopyright 2015 @ The Asia Report
Case Study: Popular Holdings
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Where’s the fear?
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Investing is simple, but never easy.
- Warren Buffett
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This is neither a recommendation to purchase or sell any of the shares, securities or other instruments mentioned in this document or referred to; nor can this course material and/or document be treated as professional advice to buy, sell or take a position in any shares, securities or other instruments.
Legal Disclaimer
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• Market cap: $32.5 mil
• Book Value: $46.9 mil
Case Study
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Case Study
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Case Study
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• Book Value: $62.3 mil
• Real P/B: 0.5
• Dividend Yield: 5.3%+
Case Study
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Deep Value cont.
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Deep value cont.
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