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Borsgade
In this interview with John Rotonti, Bill Nygren defines a value trap as a company that looks cheap (low multiples) but won’t actually become more valuable over time, typically due to structural problems. To avoid these, Nygren requires analysts to project future growth and only buy stocks with strong growth prospects.
Buying great businesses at average prices is as much value investing as buying average businesses at great prices. The idea that every business trading at a low P/E, P/B, P/anything ratio is a ‘value stock’ is just plain stupid.
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The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
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In this discussion, Bridgewater and GIC, the entity that is responsible for managing Singapore’s international reserves, assess the issues they think are most important for investors to grapple with in the years ahead.
In his recent letter to shareholders, Christopher Davis highlights that the era of near-zero interest rates ended in March 2022 when the Federal Reserve started raising rates. This shift marks a return to a more normal economic environment, though it may bring volatility and disruptions.
In this article, Michael Mauboussin argues that whenever investors value a stake in a cash-generating asset, they are essentially using a discounted cash flow (DCF) model, whether explicitly or implicitly.
In this video, Guy Spier gives a full tour of the Aquamarine office in down town Zürich. Guy walks around the office while discussing the idea and history behind the different office spaces and the library.
