I am value investing addict and trying to get into Value Investing fund. From past two years, I have used deep value strategies and got more than 100% returns. I know it is not achievable again. Any ideas. I have 10+ yrs experience in Corporate world in Finance and Risk Mgmt.
If u invested at the bottom, you could have achieved around 200%.
I started this account in Mar 2008 before the crisis
MBA.
What’s “Deep Value” ?
Typically buying below liquidation value
Just wanted to say hi… so hi… That’s all I gotta say. Cool thread. Well actually I sort of lied. Not to get too much into semantics here, but value investing is based on risk avoidance – not earning abnormal returns. Invert please.
Time to jump to the High Side.
what exactly are you invested in now?
I like turtles.
What job are you in at the moment? Do you have work experience? Getting into general SS or BS equity research would be a good starting point. That would give you a good skillset to apply for positions in more specific value investing funds when they come up. Networking is going to be important here. Get to know the names of all the value fund managers in your region and then start trying to build connections.
If you’re killing it why not just manage your own money? It seems paradoxical to say you’re making money hand over fist so you want to join some hedge fund where you’ll only reap a small percentage from your ideas, why not enjoy all the profits? Or is it you just think you got lucky and want to turn that into a job?
drk Wrote: ------------------------------------------------------- > Typically buying below liquidation value I think i have seen a lot of the stocks that were selling for under liquidation and from my elementary tracking, they have not done especially well. we’re waiting for your response on your investment ideas.
Dominating your work is the new killing it. Alternatively. Van Der Slooting is the new killing it.
Most of my money is currently in GGP and one financial firm (cannot disclose because of work). I also have a lot of small positions in ACAS, MIR, DLIA, DPMLF, HOTT, MIR, MOV, PCBC, PARL, STC, SYMS, VCLK. I have bought most these positions 3-6-1yr+ months back and waiting to sell. Initially I thought I got lucky but when I was able to repeat this for more than 2 yrs for more than 30-40 stocks, I think there is some skill and a lot of temparament involved. Please do not take this as a recommendation as most of this stuff I bought at very cheap prices. Why would I want to do a job rather invest my own money - I have invested most of my own money and currently helping 15-20 friends. I realized that researching is very enjoyable process for me where I can continuosly read 80 hrs+ in a week and still love to know more. This is not the same at where I am working. When Warren Buffet used to say that he tap dances to work, I thought it is a joke but I can see if you really enjoy work and why not do the same. If I am able to replicate anywhere close for 5+ yrs then I do not need to work for anyone. But now I can only spend 20-30+ hrs in a week on this but if I have a full time job, I could easily spend 60+hrs. All this knowledge is cumulative. By the way the cheap liquidation value only works really well when they are beaten down significantly. If the environment not stresses, if they are selling under liquidation value then most of the time there is a reason like fraud, off balance sheet liability or something. Watch out for that. Any ideas how to network with these fund managers? I am planning to attend the CFA chapter meetings.
DRK We overlapped on some positions, although I’ve monetized most of them due to a large financial obligation. DLIA (sold out) PARL (still own) I still believe PARL has significant value as a pure liquidation play (I averaged down from 2.15). Liquidation value under various scenarios plus the optionality for a reversion in earnings gives it an asymmetric return profile. I wrote it up last month actually, if you are interested shoot me a line at TheEnterprisingInvestor at gmail. I’m not too certain on DLIA since the balance sheet has rapidly deteriorated since my initial investment (no longer qualifies as a net-net in my opinion).
drk, our positions do not overlap unfortunately. though i have seen about 50% of the stocks given we problably try to screen the same way. if you bought these 1 yr ago, you problably hoping they recuperate a bit. what were some of the good stuff you bought that made you decent money. if you bought in March '09, then basically anything was going to do relatively well. didn’t need to be liquidation stocks. getting into financials would have scored you generous sums. just curious to see how ppl have done with dirt cheap stocks. i have looked at a few of them and their performance has not at all been impressive as I have tracked them. however, i am a bit tempted though not impressed so far with how they have performed. from what i can see, most of these are bankruptcy candidates as their businesses are deteriorating rapidly and there seems little that can stem the bleeding.
David Dreman isn’t deep value (just run-of-the-mill value, I guess), but he was on CNBC yesterday telling Maria Bartiromo that he is a much more of a buyer now than a seller. I thought that was pretty interesting.
there are always reasonable buys if you look hard enough. Just sometimes its a lot easier. I think the ppl i know have also been buying.
I’ve looked into PARL – their fragrances are a very fickle buyer of their inventory and therefore they may not be able to get much if anything from existing inventory in the event of a liquidation.