Glenn Greenberg is a classic value investor and has a goal to “buy cash flow cheaply”. Greenberg also looks for companies with a strong competitive advantage & aims to buy below the fair value giving himself a margin of safety. A deep value investing philosophy was popularised by the great investor Benjamin Graham.
Investing Strategy: Deep Value Investor
1. Invest into Great Management
Glenn Greenberg Quotes (4). Credit: www.Motivation2invest.com/Glenn-Greenberg-Quotes
“We look for people who have a vision of building their company into a great business” – Glenn Greenberg (Legendary Investor)
Investing into great management is one of the great keys to investing success. Baillie Gifford a wildly successful growth stock fund focuses upon investing into great founders and being partners with them long term.
2. Strong Execution Skills
Glenn Greenberg Quotes (4). Credit: www.Motivation2invest.com/Glenn-Greenberg-Quotes
“We look for extremely capable management who don’t overpay for acquisitions” – Glenn Greenberg (Legendary Investor)
Multiple studies show big firms actually lose value on acquisitions. This can be compounded if a firm gets into a bidding war with another company for the target firm. Level headed and clear thinking management is thus necessary to overcome this FOMO.
3. Invest into Recession Proof Businesses
Glenn Greenberg Quotes (4). Credit: www.Motivation2invest.com/Glenn-Greenberg-Quotes
“We are looking for good businesses which don’t turn on slight changes in GNP (Gross National Product)” – Glenn Greenberg (Value Investor)
Invest into businesses with stable cash flows that are ideally recession proof. These could be companies which sell food, consumables or just have an extremely dominant market position.
A company which solves a “hair on fire” problem for someone will always be used no matter what happens with the economy, think Google search or amazon.
4. Look for “Two Inch Putt” Investments
Glenn Greenberg Quotes (4). Credit: www.Motivation2invest.com/Glenn-Greenberg-Quotes
“Look for two inch putt investments, high return with low risk” – Glenn Greenberg (Value investor).
Warren Buffett often talks about looking for “one foot hurdles” to step over rather than trying to jump “6 foot hurdles”. Thus looking for easy, “no brainer” investment opportunities can be a great strategy.
Even the great investor Peter Lynch stated he made more money in a simple business “like Dunkin Donuts” then any advanced tech investment.
5. Know how to Value a Company
Glenn Greenberg Quotes (4). Credit: www.Motivation2invest.com/Glenn-Greenberg-Quotes
“we do not perform relative valuations (PE Ratios) etc, we do strictly DCF (Discounted Cash Flow Analysis)” – Glenn Greenberg (Legendary Investor)
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Glenn Greenberg Quotes Gallery
