So I'm sure everyone is aware of the huge surge in the price of Dogecoin in the last 3-4 months. It fucking kills me that there are actually morons with no investing or finance experience getting rich off of this intrinsically worthless joke-coin (https://twitter.com/prothedoge?lang=en) AND then go on to brag about how much money they've made, promote it, etc. I have friends with no investing experience who Yolo'd $500 or $1,000 into it when it was around $0.07 and will not stop talking about how much money they've made. I've been following it since the beginning of the year but never pulled
04 May 2021
This will be my very first post to this forum, which is admittedly dedicated more to banking and private equity rather than investment research. Given the dearth of content on buy-side equity research (understandable given the small size/low turnover of the industry), I have decided to share my experience breaking into buy-side research from the sell-side. DISCLAIMER Although I am personally a devout member of the value camp, I will be talking about long-term oriented fundamental investing in general. So when I write "buy-side research", know that I will be referring to that instead of quarter
04 Aug 2018
With PE on-cycle coming up I thought it'd be a good time to have a discussion on the Pros and Cons of Growth Buy-out vs. Value Buy-out Private Equity from an Associate perspective. I'm trying to hear some people's perspectives on which style of Buy-out firm they'd prefer to work for. I'm specifically trying to focus on firms that are doing primarily buy-outs (so not special situations or true growth equity) On the growth side of things are firms like LGP, TSG, General Atlantic where they seem to be totally cool paying 15x+ for businesses that are super healthy and high growth. My understanding
20 May 2020
I only started my first buy-side job in January and I am very new to my current firm. My PM (very senior, smart guy) seems to think that value will outperform this year because of the reopening trade whereas I believe that you will see growth outperform (especially in the 2H) because consensus is already there on the re-opening trade. I want to push back against him, but I recognize that I can be wrong (and ultimately he is the one who makes final decisions on compensation etc) - how hard can anyone really push back this early in the job? and do senior PMs get offended when you don't agree
31 Jan 2021
I'm a freshman undergrad applying to a value investing club in my school. They require me to write up a one-page stock pitch. I have no prior experience and am completely lost. They are aware that we are freshmen and don't have much experience so I honestly have no idea why they are making us do this. I was wondering if someone could help me understand the general outline of one and how to complete this stock pitch for my application? The instructions also highlighted that they prefer fundamental analysis.
08 Oct 2020
Hey guys, I'm pretty down right now. Yesterday I received an email that I was not being presented an offer for my dream job as a buy-side equity analyst at a value investing shop. I'm not really sure what I'm hoping to get out this thread other than a place to vent, and maybe some advice on what to do going forward. This rejection comes after 5 initial interviews, a 12 page stock report and Skype presentation and then 3 more interviews in person. I live on the west coast and was flown out to Toronto all expenses paid. I felt all 3 meetings were excellent, and was then notified a few days later
11 Apr 2016
Value Investing Club – membership offering You want to become a value investor and would like to join a group of like-minded individuals? This may be the right place for you. We are 3 young professionals willing to enhance our investing skills in a group setting. We thought the best way to do this would be to found a stock-picking investing club with an emphasis on quality value investing. Our view is that we can dearly benefit from (i) identifying excellent companies that create superior value over time and (ii) exploiting market inefficiencies and emotional behaviour of many of its
26 Mar 2017
Hi, I apologize if this is a stupid/noob question, but one thing that I found interesting is that a lot of hedge fund and even Equity Research Analysts that I spoke with (which admittedly isn't a ton) said that they barely use DCFs when figuring out if something is undervalued. One analyst even went as far to say that DCFs are "a great exercise in mental masturbation and that (he doesn't) weight them at all".
28 Feb 2013
Hello all, this was my first post (mod just now added to frontpage) so go easy on me. And full disclosure, none of these books is a silver bullet, just a good arrow to have in your quiver. If you're investing others' money, there's no substitute for prudence, good judgment, and wisdom, no matter what school (bottom up, top down, value, growth, momentum, etc.) you follow. Since this thread (2014 book list) didn't get much attention, I wanted to post my thoughts and see what the other monkeys had to say. My list will be very biased towards value investing (if you don't know what this is, google
01 Jun 2014
Volkswagen (VOW) is now trading at $118, down 53% from it's 52-week high of $254, with a P/E ratio of 5.5. The penalty from the emissions scandal could be as high as $18B, but I expect a company such as Volkswagen, which does in excess of $200B per year in sales, will eventually recover and bounce back from this event. What are your thoughts? Does this news present a good buying opportunity and is now a good time to jump in and pick up some shares?
24 Sep 2015
Some of these messages are very old but I'm going to answer them anyway b/c I'm in a helpful mood. Question: How would I know what the career path for [this particular hedge fund]? Every fund has their own "career path"...it just depends what the founder thinks. Some give a shit and want to develop junior people. Others don't care at all and will churn and burn you. A good proxy for a quality career path is employee turnover. Are guys sticking around or not? Question: Also, how do you tactfully talk about salary?
15 Oct 2012
I wanted to ping the WSO community and see if there are any users here that are analysts in the Tiger Cub network and would offer some insights. I work for a L/S fund with a value focus and our analysts have very little interaction with other funds. We spend essentially all of our time in SEC filings, conference call transcripts, research reports, etc doing fundamental, bottoms up work. We are very value-oriented and will buy some businesses that I think are pretty shitty but they are so cheap and we size the bets appropriately. We buy growing businesses at less attractive prices as well but skew more towards that traditional value side.
06 Jun 2013
A competent analyst is one who has an above-average ability to generate satisfactory investment returns (well know examples will include Ben Graham, Walter Schloss, Warren Buffett etc.). While I am too young into the industry to be passing pronouncements on 'what it takes to be a competent investment analyst', I have written this post to focus on things that I have learnt from those more experienced and accomplished than I am. Hopefully, this post will help other young analysts in setting their priorities: 1) The first and most important requirement is a passion for learning and for business
12 Jul 2015
Chaplin Capital's investment strategy is event-driven and value-oriented, specializing in the identification and analysis of securities likely to experience a change in value resulting from market catalysts. The firm's investment activities may be classified under three strategies: • Merger arbitrage – mergers, acquisitions, buyouts, hostile takeovers • Special situations – restructurings, spin-offs, litigation, short sales • Undervalued securities with a catalyst – management change, shareholder activism, industry consolidation Chaplin Capital, LLC focuses on microcap to large-cap companies
10 Feb 2018
Hey guys, I'm going to be working on a stock pitch for a student value fund. I'm looking for some small caps names and I was wondering how other people go about picking companies to look into, you obviously can't just go around reading a whole bunch of companies 10Ks until you find one you like. And I don't really think that using a stock screener is a very reliable way to find companies to dive deeper into. I have a few ideas of specific areas I would like to look into but have no specific companies in mind. I tried to look on google finance for public companies related to the keyword but it
09 Aug 2012
If something is repeated often enough people will eventually start to believe it. Buffett always buys "good" companies, and Graham bought companies on the verge of bankruptcy. Investors who buy into good companies doen't need to worry about the price they pay. Whereas Graham investors need to be worried because eventually all net-nets go to zero. Sometimes the truth is more nuanced. Would Buffett disciples be surprised to read a story about Buffett buying in and out of a small stocks in his personal portfolio? Would investors be surprised to read a quote by Graham about preferring quality
09 Nov 2014
Hi I am returning to the US after several years of working in China. Am looking for global deep value funds that would allocate to Asia, something along the lines of Brandes or Third Avenue, but smaller and more flexible. Would appreciate it if anyone here could recommend some funds to look into. Thanks!
08 Jun 2017
Hello all. I am reading Security Analysis and I am having some trouble understanding the "rule" mentioned in my the title of this thread. For some of you who may find this stuff easy, please be easy on me... i am not a finance major. :p Okay, so the rule states. You recapitalize a company that had (P)referred stock and (C)ommon stock with "hypothetical new (C')ommon stock " eliminating old Common issue giving Preferred issue all of the valuation. Basically the value of (C') can not be less than the value of (P). That seems pretty obvious to me. Graham gives example in his book: (P) x 80 K Sh @ 118 = 9.44 mil (C) x 200 K Sh @ 57 = 11.4 mil Total Valuation = 20.84 mil So if you recapitalize with new (C'), the old common is eliminated. (C') - 260.5 [20.84mil/80k]
01 Jan 2012
There's been more than a few questions floating around WSO about the interview Stock Pitch. How to do it? What to look for? Does it really matter? Well, Mebane Faber of Cambria Investment Management has laid out an excellent basic guide on stock picking right here, taken off his notes from his security analysis class under Tiger Cub John Griffin, so I'm pretty sure this'll help more than a few monkeys on the first two questions. As for the third, yes, it does. And besides, what do you have to lose being prepared? Here's a few points from his overview... Qualitative Analysis Industry Study
22 Jan 2011
Is the average American investor an idiot? I found myself pondering that question yesterday as I tried not once, but twice (unsuccessfully, I might add), to edge myself into some DXD calls between the spread. This is a trade I've already been burned on three times in the past 9 months. And by burned, I mean the options expired worthless. 100% loss. Three times now. And I'm trying it again. Paul Farrell wrote this piece a couple months ago, and it has rattled around inside my head since then. He says Wall Street looks at the investing public as a bunch of "predictably stupid losers" and has
05 Aug 2010
Greetings guys, So Eddie and I just wrapped up another episode of NSFW and I hope you enjoy it. This creates the perfect segue into something that's been on my mind lately. I want to take this quick snippet of your Saturday to point out something that many of you already know, but some may not have stopped to think about. Whether it's the nature of our collective ambitions, a shared career interest or simply a lack of social skills and the inability to fully involve from our primate ancestors, we are part of a great and unique community here at Wall Street Oasis.
13 Nov 2010
He couldn't stop talking about the great deal he got on his boat. My friend purchased his boat over the internet from what he considered a sap Florida. The boat was supposedly in mint condition, everything was like new, it ran well. We looked at the same batch of pictures over and over as we listened to his savviness in buying cheap online. Since he didn't live in Florida he paid someone to tow the boat to Pennsylvania. It was there the problems started. On the way back the boat trailer developed a problem with the wheel bearings. My friend explained it away as something simple that happens to
30 Aug 2015
How do you view an MBB analyst program vs an investment analyst at an asset manager for a Pre-MBA candidate? Specifically, experience at a value investing shop managing close to $3Bn vs a vanilla MBB analyst gig. On the face of it, MBB has the edge with brand and exit ops, while the AM offers a better payout and learning. I'm trying to think along the lines of Learning, Exit Ops and feeders to MBA programs. Which is better and why?
29 Apr 2015
The Black Swan author Nassim Taleb was in Canada last week for the Salon Speakers series and was asked by an audience member; if given a choice between investing with Buffett and billionaire investor George Soros, who would he pick? The former prop trader said he would probably pick Soros, and argued that: [quote=Taleb]"I am not saying Buffett isn't as good as Soros," he said. "I am saying that the probability Soros's returns come from randomness is much smaller because he did almost everything: he bought currencies, he sold currencies, and he did arbitrages. He made a lot more decisions
28 Sep 2010
Investors such as a Buffett and Klarman don't believe in Modern Portfolio Theory, CAPM etc. Buffett calls it "Alice in Wonderland" and Klarman states that he does not even know how to calculate Beta. So if one is a value investor, would it pretty much be useless to take the CFA program? Obviously it is good to know other financial theories for personal enrichment, but if I am a deep-value investor, and my only investment philosophy will be value investing, is it pretty much useless to get a CFA?
17 Apr 2012
Inspired by a recent employer attractiveness survey, Jorge, an obscure yet devastatingly handsome writer for the world's premiere finance community, Wall Street Oasis, has decided to run a survey on who are the most attractive CEO's in Wall Street to work for. Choosing from over 20 nominees from the world's top banks, consulting, private equity, and fund management firms, monkeys from all over the world will vote in the comments section which 3 of the top CEOs, fund managers, or directors they want to work with the most. The winning CEOs will most likely not be notified of their victory, but
10 Nov 2010
It's a rare event when 2 big names in finance square off over a stock, and even rarer still that they take the battle public. And that's what's been going on lately when Fairholme Capital Management's Bruce Berkowitz took on Greenlight Capital's David Einhorn in an epic struggle I now call: The St. Joe Stockpicker Slugfest Here's the Tale of the tape: Bruce BerkowitzDavid Einhorn Age:N/A42 Education:UMass Amherst - cum laudeCornell - summa cum laude Investment Style:ValueValue Rough Annualized Returns:13%: 1999-200929%: 1996-2006 Known for:Gordon Gekko hairdo, keeping things on the down
16 Oct 2010
Hello, fellow primates. This is my first post here after months of just reading. We are a group of three friends from the same university. We have studied and developed some theses and investment models together. We found out that in Brazil, the country we are from (but we are currently studying in Europe), the financial regulatory authority allows the creation of something called a Investment Club. It is very similar to the Investment Clubs that exist in the US or the UK, for example, but with some particular rules that make it more like a fund. Anyways, we believe that it would be a good
09 May 2021
Hi, As the title says, I hope these questions aren't completely stupid, but basically, I have been developing an interest in value/fundamental investing, and I was wondering about a couple of things: 1. What styles are associated with non-quantitative, more fundamental methods? I.e. its a given that deep value funds are less quantitative, but what about some of the other styles, such as merger arbitrage, long/short, etc.? Are they also fundamental driven or more quantitative?
06 Jun 2011
This post isn't for most readers, drop back in a day or two, there will be an interesting bank profiled. I have had a number of emails recently from readers asking some basic value investing questions, and I thought I might put a simple resource out there for beginning investors to refer to. What is value investing Value investing is the concept of purchasing companies for less than their worth. It's almost strange that this idea has its own title, because this is what all investors are endeavoring to do, whether it's titled value investing or not. An investor needs to look at a stock as a
22 Oct 2013
Hi everyone, I am a senior in college and have been investing my personal account for the past 1 1/2 years with some success. I was wondering if anyone else here on WSO invests and is interested in forming some sort of micro-cap investment group to share ideas. I ONLY focus my attention on small companies ($100mm and below), as smaller companies are generally undiscovered, and hence the gap between market and fair value is usually much wider. Executive management teams are also more receptive to speaking with private investors. My investment style is typically deep value + catalyst. I also
06 Jul 2015
I was asked this question in an interview, curious to see how some of you monkeys would tackle the Q...?
03 Oct 2015
In the past few months there's been myriad speculation on how Apple would fare without Steve Jobs; with the man being synonymous with the company he founded, some have argued that without him it wouldn't hold its high valuations, and some, perhaps foolishly, have said that the whole thing could crumble. I agree with the former, and the latter's just ridiculous. There's another company though whose founder is just as synonymous with it as Jobs' is to Apple, maybe even more central, that's been flying low on the radar lately but with the investment community now raging boners over the release of
26 Feb 2011
In a year where a great amount of value has been lost in investments such as Energy, Basic Materials, and Utilities; value can be found in those that benefit from the inevitable Fed actions taking place later this year. The Financials sector has grown a mere 1.6% despite a rather bullish outlook for the group. Here are 3 reasons why you should allocate a significant amount of invest-able funds into the Financials sector, banks specifically: 1) Raising rates will cause Net Interest Margin to increase, growing revenues – the popular measure tracks how much banks earn when they borrow from
12 Aug 2015
There is a common perception about value investing that it involves purchasing shares of companies on the brink of financial ruin with the hope they turn around. Viewed through this lens value investing is risky and the value investor one step away from experiencing individual ruin as their investments go bad all at once. It's not hard to see where this perception could have come from. In the world of academic finance where everything can be reduced to a formula, investment returns are a product of risk. Riskless assets generate no returns whereas supposedly risky assets generate outsized
28 Jul 2015
Most people here have probably heard of David Einhorn , the infamous hedge fund manager who shorted Lehman Brothers. But to most other people who don't know what a hedge fund is, I'd say that he's an investor. Everyone knows what an investor is; people who make money buying stocks are investors, and people who lose money while picking stocks are called speculators (or is it the other way around?) But not only is Einhorn known for his value investing skills, but also for his poker skills, which makes his story very interesting. But are investing and poker similar? Is gambling and investing the
18 Aug 2012
Hello, to start with I'd like to thank anyone learning my situation, taking it seriously and and providing me with advice. I am very grateful for your time. Also, please be aware I am inexperienced within this sector and so parts of this post may seem unstructured (rambling). This is aimed at people employed within areas concerning the financial markets, who understand the varying job positions, predominantly the ones listed in the title above. My name's Tom, I'm 21 years old and I'm, in my second year of business management studies here in the UK. After not knowing what I want to do for a
21 Dec 2020
I'm a senior in college who has been managing a small PA for the past couple years. I adhere to a deep value/special situations strategy. While I'm not a big fan of getting on the phone and speaking with people I don't know, I always make it part of my due-diligence process to speak with management (or IR) for my larger investments. Typically this entails calling IR and scheduling a conference call with the CFO, or calling the CFO directly for smaller companies. With enough prep I don't have much of an issue speaking with management, although I haven't yet achieved socializing nirvana to the
20 Aug 2015
I'm currently reading through Benjamin Graham's The Intelligent Investor and I think I would like to pursue a career in AM that uses the investing guidelines he gives in the book. However, as a junior undergrad in the SF area, I am not sure what type of firm and position I should be looking for. For a summer internship in SF, should I look for equity research or Asset Management position? BBs or boutique firms? How can I specifically find firms with a value-oriented strategy? Thanks.
31 Dec 2009
I have been reading this board for a while now, particularly the "break into HF from XYZ" threads. I thought I would share my own story, although I am still working towards my goal. I currently work in accounting advisory/consulting, mainly helping companies with financial restatements and accounting investigations. I have been there 5.5 years and promoted twice, now a Managing Consultant. Fairly early on I decided to pursue a career in investment management, although I had only a basic understanding of what that meant at the time.
21 Oct 2014
Hi, I graduated from UCLA four years ago in Art History with a ~ 2.8 cumulative. The only related course I took in undergrad was at a CC prior to transferring (Stats for Behavioral Science - Grade A). Since graduating I've worked part-time as a freelance copywriter for tech companies such as Microsoft, NetApp, and others. Somewhere along the line I became very interested in and started to self-study investing, and my long-term goal now is to work at a value-oriented firm. Given my background and goal, should I: 1. Focus on taking some prep courses at a local college or university and/or attend
26 Oct 2020
Ladies, gents, Been with a large HF for 3 years, but strategy is trading heavy and not necessarily based on fundamentals. I want to do a value-based strategy instead. Point is how to get there. Either I educate myself or I thought of even doing an MBA a la CBS (value investing programme in 2nd year). Any thoughts from you guys in the HF / investment mgt industry? If you ever changed strategies, how did you get there? Thanks
29 Oct 2017
I recently became aware that Mohnish Pabrai is an advocate of an investment checklist to reduce analysis error. I've always wanted to do something like this. Specifically, I wanted to create a list of my key takeaways from the best books I've read, i.e, Margin of Safety, Security Analysis, etc... I was wonder if anyone on here has one that they are willing to share. Or if anyone is interested in creating one as a community. -KB
25 Apr 2012
Bill Ackman & Sequoia are not the only successful investors who are being caught with their pants down. If you haven't heard of mohnish pabrai, you should look him up. He's a fantastic value investor who (I think through 2014) had outperformed the S&P handily, with a >510% cumulative return since 2000 versus the S&P's ~45% cumulative return over the same period. However, he's recently had a misstep with what used to be his largest holding, horsehead holding corp (ticker ZINC). Back in 2013 & 2014, this was as much as 30% of his portfolio. The stock was at $20 then. Today, it trades for 13
31 Mar 2016
Obviously these two investment styles are derived from different schools of thought and have both had their successes and shortcomings over the past 30 years. How do you distinguish these mindsets for investors? Do you find yourself partial to one or do you learn to develop that mindset based on where you work and who you interact with? I would be curious to hear people's opinions on this and how they would compare and contrast the two styles.
11 Apr 2012
I know this has been covered previously, just thought I would bring it back up since I'm considering this program. How is this program viewed from perspective employers? Without prior buy-side or equity research experience would this program be a good launching pad to the buy-side?
23 Jul 2011
I'm currently a student in college and am extremely interested in equity research, but also have a fondness for value investing. I've read and continue to read many books on the subject. For most Equity Research positions on the buy-side, would taking this mindset into an interview be a hindrance? It seems like most equity research aims to put a target price in the near-term, without much regard to longer term holding, but I could be completely wrong on this. I don't want to plan a lot of theses around this mindset if most firms don't subscribe to it, but at the same time I would be very
11 Jun 2014
Hi everyone, I recently began reading the Buffett letters upon recommendation from a friend. They provide, with competition only from Intelligent Investor, the most clear, humorous, and useful investing advice I've ever seen. There is a reason they are classic. However, they are reasonably long and there are about 50 years of letters. Quite a chunk of reading. So I began wondering, has anyone posted summaries online? From my (brief) research, I concluded none existed. Sure, there were lots of "takeaways from Warren's letters" that told mom-and-pop investors America was great, everything was
07 Jul 2015