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Warren Buffett acquires a $2.6B stake in Paramount Global | Analysis

by Admin | May 17, 2022 | Investing Legends, Stock Market

Berkshire Hathaway loaded up on shares in Q1.

Paramount Global (PARA) is a global media brand which owns CBS, Comedy Central, Channel 5, MTV, Showtime and much more.
Paramount Pictures has the rights to iconic movies like The Godfather, Top Gun, Iron Man, the Titanic, Mission Impossible and more.
Paramount+ streaming service has ~40 million paid subscribers and plans to reach 75 million by 2024.
Berkshire Hathaway Bought shares in Q122, at an average price of $34/share.

Paramount Global (NASDAQ:PARA) is a global media brand which owns CBS, Comedy Central, Channel 5, MTV and much more. Berkshire Hathaway bought shares in Q122, at an average price of $34/share. Warren Buffett is now the largest shareholder in the company, as he now owns 10% of shares outstanding with an approximate value of $1.9 Billion at the time of writing, down from $2.6 Billion reported. Mario Gabelli of GAMCO investors was also buying shares in Q1, 2022. He increased his position by 152% and now owns 655,913 shares in Q1.

The stock price dropped to a low of $26/share on the 11th May and is up 8% in pre market trading. Let’s dive into the Business Model, Financials and Valuation to find out why Buffett has invested.

Leading Business with a Moat

Paramount Global (PARA) is a global media brand which owns CBS, Comedy Central, Channel 5, MTV, Showtime and much more. Buffett likes to invest into companies with a “moat” or competitive advantage. In this case, Movie studios Paramount Pictures has the rights to leading Iconic movies which should act as a strong moat. These include; The Godfather, Top Gun, Forrest Gump, Iron Man, the Titanic, Star Trek, Mission Impossible, Transformers, and more.

The company even has partial ownership of the rights to the Indiana Jones Franchise along with Disney. These movie rights give the company the ability to do multiple future remakes and keep cashing in. For example, a new Top Gun movie has recently premiered in 2022. All four theatrical releases this year have reached #1 at the box office, which shows they have no sign of slowing down.

paramount-plus-movies-1

Brief History of Name Changes:

The company has been through various mergers and name changes over the years. In 2019 they were called ViacomCBS Inc. due the re-merger of the CBS Corporation and the “new” Viacom. In February 2022, they announced they would be changing their name to “Paramount Global” to represent all that they do, and being “Paramount” in the media landscape.

Paramount Media Studios

On the television side, Paramount Global is a market leader CBS is the #1 Broadcast network and has been for the past 14 years. While Comedy Central was rated the #1 cable entertainment network and includes iconic shows such as South Park. Nickelodeon produces nine of the top 10 kids shows which include “Paw Patrol.” Over the past few years the company has spent a fast amount of time acquiring an extensive library of Spanish speaking content, which is the 4th most popular language in the world.

paramount_global_by_ethanishere_df05goe-pre

Growth in Streaming:

Paramount+ was launched in 2014 as CBS All Access. After the Viacom remerger in 2019, their Media Networks brands such Comedy Central. MTV, Nickelodeon and Paramount Pictures were integrated into CBS All Access. In 2021, the P+ was rolled out in 25 markets including Latin America, Canada and Australia. In 2022, they plan to launch in the UK and South Korea. With further launches planned in Italy, France, Germany, Switzerland and Austria.

As of their Q1 earnings report, P+ generated 6.8 million in new subscribers which was above expectations. Currently they have just under 40 million paid subscribers, and have plans to reach 75 million by 2024. To put this into perspective the market leader in streaming Netflix (NFLX) has 221.6 million subscribers, while Disney+ has 137 million subscribers. Now although Paramount is late entering the “steaming wars” but due to the low cost nature of these streaming services, it would not be unsurprising for households to subscribe to multiple services. These would act like “television channels” and means we have come full circle! Paramounts differentiated and Iconic “content is king” is appealing (who doesn’t love the Godfather) and thus I believe subscriber growth will continue inline with their recent figures.

viacom-cbs-streaming

The company also owns Pluto TV, which they acquired in 2019. This service added 3.1 million Monthly Active Users (MAUs) in the quarter, bringing their total to over 68 million. They specialize in free, ad-supported streaming services (FAST) which gives Paramount a range of distribution methods appealing to different audiences.

This service generated close to $1B in revenue, which is a 1400% increase over the past 3 years. Paramount also has a major opportunity to expand into India and offer their service to the growing middle class population. CEO Bob Bakish stated in Q1 earnings: “we’re going to enter India in 2023, in a very capital-efficient, hard-bundled way”. They are aiming for IPL (Cricket rights) but will enter either way.

Stable Financials

Paramount Global generated $28 billion in revenue as of Q421, up ~12% YoY. Gross profit came in at $10.8 billion, + 5% YoY. While operating income dips slightly to $4 billion, down 16%.

As of Q1, total revenue was $7.32 which represented a 1% decrease year over year, due to a decline in advertising and licensing revenues.

Adjusted OIBDA declined 44% from the prior year’s quarter to $913 million.
Selling, general and administrative expenses increased 13.9% year over year to $1.61 billion.

According to their Q1 earnings call (Page 8). Paramount+ segment saw strong revenue growth, up 150% to $585 million, with domestic and international ARPU both higher quarter-over-quarter and year-over-year

As a media business the company operates with a healthy 35% gross margin and ~14% operating margin. The company ended Q1 with $5.3 billion of cash and total debt of $16.8 billion. This is fairly high debt but not surprising for a mature company. In terms of valuation, the GF Value line which analyzes historic multiples indicated the stock was “modestly undervalued” with pre market trading was priced in, the stock is now “fairly valued”. The stock also trades at a EV to EBITDA multiple of just 5,.4 which is at a similar level to Netflix (EV to EBITDA = 4.68) after their recent decline. While Disney is much more expensive with an EV to EBITDA = 22.9.

Final Thoughts

Paramount Global is a tremendous company, with a strong competitive advantage thanks to their Iconic movie selection. They are also leaders in Network TV across a variety of platforms and have strong growth plans for the future. The stock is undervalued relative to historic multiples and trades close to “cheap” competitors such as Netflix and thus it’s no surprise Buffett loaded up on shares in Q12022.

Is Value Investing Dead?? | Value Vs Growth Stocks Study | Buffett Vs Cathie Wood

by Admin | Dec 8, 2021 | Stock Market

What is Value Investing?

Value Investing is an investing strategy categorised by two aspects, the first is finding the “Intrinsic Value” of a stock or asset, then the second is aiming to buy below that “intrinsic value”.

There is also “Deep Value investing” which entails buying a stock for below it’s net asset value “net-nets” popularised by the Father of Value Investing Benjamin Graham, Warren Buffett’s former professor, whom wrote the famous book “The Intelligent Investor”.

Value Investing correlates most with traditional business logic. The Idea is simply to “buy cash flows cheaply” or “buy one dollar for 50 cents” as Warren Buffett would say.

“All Investing is Value Investing, who wants to pay more for something than it’s worth” – Charlie Munger (Billionaire Value Investor)

Legendary Value Investor Joel Greenblatt giving an example for why he is a value investor, paraphrasing his quote below:

” If you were buying a house would you buy a house which has recently gone up in price & is thus more expensive (that is momentum investing) or would

you quantify the cash flows from rental income & aim to buy a house which was relatively cheaper than similar ones in the area…that is value investing. “

What is the Value of a Stock?

A stock is just a share of a company, thus the value of the company is present value of the companies future cash flows.

As the old saying goes “A bird in the hand is worth two in the bush”. Thus cash in hand today is more valuable than “promised” cash in the future. This is because of uncertainty/risk to cash flows, in addition to inflation & opportunity cost.

4 Questions to Value a company or Stock. Source: Professor of Finance, New York University

There are three drivers of business value:

Cash Flows (Existing)
Growth in Future Cash Flows
Risk to Cash Flows

To find out the “present value” of cash for a business we use what is called a “Discounted Cash Flow model” . We have created advanced discounted for over 55+ stocks which you can download as part of our Stock Investing Course.

Value vs Growth Investing?

Value and Growth Stock investing are not as different as many people think…if executed correctly with a solid strategy.

As “Growth in Future Cash Flows” is a portion of value, thus modern Value investors don’t ignore growth as commonly thought. The challenge lies in predicting the “Growth in future cash flows”, this is uncertain as nobody can predict the future consistently.

Thus as a rule of thumb, a value investor may be more inclined to pay less for promised growth in future cash flows and thus focus more on historic and more certain cash flows.

This leads to many traditional value investors having a bias toward more established mature companies as opposed to a young biotech company with lots of future growth priced into the stock.

A Growth Stock investor such as Cathie Wood of Ark Invest (original Tesla Investor) may be more inclined to pay more for future cash flows as she has higher conviction.

Is Value Investing Dead??

Value investing has UNDERPERFORMED growth stock investing over the past decade which has lead many people to say “Value Investing is dead”. However in 70 years prior Value has OUTPERFORMED growth stock investing strategies.

Thus Value Investing has a greater track record of outperformance historically and as a strategy is as timeless as common sense and thus not dead. The fact that Value has underperformed growth over the past 10 years, has led some people to believe this is a systematic change, only time will tell.

According to a study by a Professor of Valuation at New York University (2020) , a simplified value investing strategy of buying stocks with low Price to Earnings (PE Ratios) and Low Price to Book value (PBV) would have UNDERPERFORMED a simplified growth investing strategy by approximately -5.75% between 2010 and 2019.

However, Historically a Value investing has outperformed growth investing over the 70 years prior.

The exception is the historic period between 1990 to 1999 when both strategies returned close to equal returns +/- 1.7%.

This is from a back-test of four simple strategies, using extremely simplified measures of Value.

Buy “cheap” Value stocks with a Low Price to Earnings Ratio (PE Ratio) – Simple Value Strategy
Buy “cheap” Value stocks with a Low Price to Book Value (PBV ) – Simple Value Strategy
Buy “Expensive” Growth Stocks with a high Price to Earning Ratio (PE Ratio) – Simple Growth Strategy
Buy “Expensive” Growth Stocks with a high price to book value (PBV) – Simple Growth Strategy

See below image details from study

Investment strategies historically Value vs Growth stocks. Source New York University (Professor of Finance)

From the image above from the study of value vs growth investing, I have highlighted in Green the decades when this simple value investing strategy out performance growth (50 years+) and in red the decade where growth has outperformed value (Last decade).

Warren Buffett Vs Cathie Wood

If we take a classic value investor (Warren Buffett) and a famous Growth Stock Investor (Cathie Wood) lets compare investment returns historically.

Ark Invest vs Berkshire Hathaway Returns (Cathie Wood Vs Warren Buffett)(Value Vs Growth Stock Investing. Source: www.motivation2invest.com/value-growth-stocks

From the data above Ark Invest (ARKK) Cathie Wood has outperformed Berkshire Hathaway (Warren Buffett) on a percentage basis over the past 5 years with an annualised return of 39.7% vs 12% for Berkshire Hathaway.

Why Cathie Wood may not be better than Buffett?

1. Ark Invest has limited historic performance data

Ark Invest was founded in 2014 and their official website only shows ARKK data from 2016. This is not a substantial time period to prove their strategy is effective long term, as luck can play a larger factor in such small data sets.

2. Ark Invest had exceptional returns in 2020

Ark Invest has had good returns most years but exceptional returns in 2020 (152%) . Could 2020 have been a year when luck played a large part?

Ark invest has a Year to Date performance for ARKK of just 5% (as of Dec 2021).

Berkshire Hathaway has a Year to Date Performance of 22.5%, greater than Ark Invest!

3. Tesla Stock in 2020

Tesla Stock made up approximately 10% of Ark Invests Innovation ETF in 2020, making it their largest and highest conviction holding.

This stock experiencing astonishing returns up 700%+ in 2020 alone, driving majority of Ark Invests returns in 2020.

The question is has Ark Invest & Cathie Wood chosen many “Tesla Stocks” which will also have tremendous performance in the future.

Cathie Wood Quotes Ark Invest Tesla
Credit: www.Motivation2invest.com/Cathie-Wood

4. Berkshire Hathaway Long term Record

Berkshire Hathaway has returned average annual return for investors of 20% since the beginning of 1965 (over 56 years!) . The total returns to Buffett’s firm since 1965 has been a whopping 2,810,526%!

5. Size of Berkshire Hathaway Vs Ark Invest

The larger a company the more difficult it is for them to grow (on a percentage basis) and also find investment opportunities.

Ark Invest has $42 Billion in assets under management (2021) whereas Berkshire Hathaway has $239 Billion in assets! To put things into perspective Berkshire Hathaway has $149 Billion just in cash on hand, this is enough to buy the entire Ark Invest (and all ETF’s) over 3 times over!

So when comparing Berkshire Hathaway to Ark Invest, it is not comparing apples to apples, but as we care about percentage returns that is what we have done.

Conclusion

Value or Growth Stock Investing are two strategies with a lot in common as predicting the “Growth in Cash Flows” is a portion of valuing a company.

To ignore value is to ignore reality and only makes sense for a short term momentum trader where fundamentals are irrelevant.

From studying the greatest investors of all time, I was not surprised to see that the vast majority identify themselves as “Value Investors” although they have variations in terms of style. From Buffett to Charlie Munger, Michael Burry (Big Short) and many more.

I personally consider myself a combination of both a value & growth investor, some would call me a “modern day value investor”.

I have an open mind to valuing a business and shake off historic rules of thumb from the past.

For example, I believe in embracing new valuation methods (as PE Ratio’s) are not sufficient and “money losing” tech companies may actually be great investments (Amazon, Uber etc) so should be looked at with an open mind.

Good luck on your journey to being a great investor, I wish you wealth & prosperity.

Value vs Growth Investor Quotes Gallery

Cathie Wood Quotes Ark Invest Motivation 2 invest (4)

Cathie Wood Quotes Ark Invest Motivation 2 invest (1)

Cathie Wood Quotes Ark Invest Motivation 2 invest (12)

Testing Investment strategies historically Value vs Growth stocks

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We open the course & our stock research platform each month for a limited time, so be sure to click through to reserve your spot. Good Luck!

10 Most Feared & Famous Activist Investors | Wall Street Legends

by Admin | Dec 7, 2021 | Investing Legends, Stock Market

Activist investors are the boldest & most influential investors. They target companies which can increase their shareholder through a change of management, strategy, company structure etc.

To accomplish this change Activist investors generally can “force” their way onto the board of directors by purchasing a large enough number of shares in a public company.

Such “takeover” attempts are often fought by existing management/CEO who fears they may be fired, many CEO’s even cement in a “Golden parachute Clause” to ensure if they did leave they would have a substantial pay check to compensate.

Some Shareholders welcome the presence of an activist investor, as they will hold the management of the company accountable and force changes as necessary.

Greenmail

“Greenmail” is frowned upon corporate business tactic which occurs when a corporate raider or activist investor buys a large block of a companies stock & then threatens to take over the company, unless they are paid a premium over the purchase price. Here are the top 10 most famous Activist Investors, with many Quotes included.

Activist Investor Quotes Gallery

Bill Ackman Quotes Motivation 2 invest (4)

Carl Ichan Quotes motivation 2 invest (5)

Bill Ackman Quotes Motivation 2 invest (2)

Jeff Uben Hedge Fund investing quotes (3)

1. CARL ICHAN

Carl Icahn is a legendary activist investor who’s brash & outspoken Strategy of investing has made him a billionaire, with an estimated net worth of $16.7 Billion. Carl Icahn was a feared & famous corporate raider during the 1980’s.

He generally focuses on companies which are hording cash on the balance sheet, have limited growth opportunities and poor corporate governance.

Carl Ichan Quotes motivation 2 invest. Credit: www.Motivation2invest.com/Carl-Ichan-Quotes

“I enjoy the hunt more than the good life after the victory”. This is another way of saying the thrill is in the chase. It is clear Carl Ichan and many legendary investors such as Warren Buffett love the game. As it is obvious they are extremely wealthy but still love the game

Notable Activist Raids by Carl Ichan:

Carl Ichan Activist Investments Corporate Raids Motivation 2 Invest

Carl Ichan Activist Investments Corporate Raids. Credit. Created by www.Motivation2invest.com/Carl-ichan

Carl Ichan Quotes motivation 2 invest. Credit: www.Motivation2invest.com/Carl-Ichan-Quotes

“Bill Ackman is a cry baby in the school yard”. This is an extract from the “battle of the billionaires” a public argument on CNBC.

Carl Ichan and Ackman had a major battle over the company Herbal Life. Billionaire Bill Ackman had shorted the stock as he believed it was a “pyramid scheme” and Carl Ichan took the opposing side. In the end, Ichan came out on top with a reportedly $1 Billion in profits.

Carl Ichan Quotes Gallery

Carl Ichan Quotes motivation 2 invest (3)

Carl Ichan Quotes motivation 2 invest (2)

Carl Ichan Quotes motivation 2 invest (6)

Carl Ichan Quotes motivation 2 invest (4)

2. Bill Ackman

Bill Ackman is a legendary activist investor & billionaire, he is known for making big bets against the consensus & being right!

His strategy was originally influenced by Warren Buffett & he considers himself value investor at heart, but it’s clear his strategy is much bolder & more fitting to an activist investor.

Bill Ackman is one of the greatest investors of all time despite his bold style. Pershing Square holdings (LSE:PSH) has achieved a 1,412.8% return between (2004 to 2021) vs the S&P 500 return of 399.2%.

BEST BILL ACKMAN QUOTE MOTIVATION 2 INVEST Quotes (54)

BEST BILL ACKMAN TRADES Credit: www.Motivation2invest.com/Bill-Ackman-Trades

Bill Ackman has had some exceptional investments over the years. In 2020, Ackman turned $27 Million into $2.7 Billion with his bet against corporate credit.

Persistent Activist Investor

Bill Ackman is extremely persistent & outspoken, when he believes he is right. This can work positively when it pay’s off (MBI Case) but can also work negatively when thinks don’t work out (Herbal Life).

After an extensive amount of research & a trip back through history, I have managed to find out the approximate returns & losses for Bill Ackman’s most public trades.

A few trends are notable from the below graph:

More Win’s than losses (6 out of 10 public bets)
Losses are Smaller than Wins
Net Returns are positive +$4.75 Billion minusing losses from failed public trades.

BILL ACKMAN PUBLIC TRADE RETURNS BREAKDOWN, (Win/Losses). Credit: www.Motivation2invest.com/Bill-Ackman-Trades

See Unpacking Bill Ackman’s 10 Best & Worst Trades for more.

Bill Ackman Quotes Gallery

Bill Ackman Quotes Motivation 2 invest (5)

Bill Ackman Quotes Motivation 2 invest (6)

Bill Ackman Quotes Motivation 2 invest (3)

Bill Ackman Quotes Motivation 2 invest (1)

Bill Ackman Quotes Motivation 2 invest (10)

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Bill Ackman Quotes Motivation 2 invest (8)

Bill Ackman Quotes Motivation 2 invest (7)

Pershing Square Holdings Bill Ackman Portfolio Performance 2004 to 2021

Bill Ackman Trade Returns Table Breakdown Good Investor or bad

Historic Interest Rate Rises relative to Inflation and Unemployment depart of labor statistics

3. Jeff Ubben

Jeff Ubben is an activist investor & hedge fund veteran.

Previously he ran ValueAct Capital before launching his new fund Inclusive Capital Partners in 2020.

One of Jeff Ubben’s major activist wins was his investment into Adobe in 2011. ValueAct got board seats in 2012 and then sold shares for over $1 Billion 5 years later, as the stock rose by over 200%.

A major loss by Ubben was his investment into Valeant, the company had board since 2006 and was doing well until the stock crashed.

Ubben is now seeking to raise $8 billion for his new socially and environmentally conscious fund.
He recently joined the board of Exxon Mobil to help bolster their environmental credentials.

Jeff Ubben Quotes Gallery

Jeff Uben Hedge Fund investing quotes (7)

Jeff Uben Hedge Fund investing quotes (8)

Jeff Uben Hedge Fund investing quotes (9)

Jeff Uben Hedge Fund investing quotes (10)

Jeff Uben Hedge Fund investing quotes (6)

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Jeff Uben Hedge Fund investing quotes (2)

Jeff Ubben Hedge Fund investing quotes (1)

4. Chris Hohn

Sir Chris Hohn is a Billionaire, know as “The UK’s most powerful Hedge Fund Manager”

Hohn is an activist investor with a focus on Value Investing. Hevhas made headlines recently for earning a stratospheric £1 Million per day in 2020.

Fun Fact: Hohn has pledged over $2 Billion to charity, which earned himself a knighthood in 2014.

Chris Hohn Quotes Gallery

5. Dan Loeb

Dan Loeb is the Billionaire hedge fund manager of an event driven, value investing fund.

Loeb’s Strategy is that of an Activist investor as he likes to buy troubled companies, replace inefficient & bad managers and thus increase value for shareholders, he describes this as his “Key to success”.

Loeb founded Third Point Partners targets have includes Sony, Yahoo, and recently the Japanese retail group (Seven & i Holdings Co).

Fun Fact: In a recent interview Loeb stated the name “Third Point Partners” comes from a beach area in California where he had many good times surfing and socialising with friends.

Dan Loeb Quotes Gallery

6. Christer Gardell (Cevian Capital)

Christer Gardell is a management consultant-turned-hedge fund manager who was dubbed a capitalist “butcher,” . He founded Cevian Capital in 2002 with an ex-investment banker Lars Förberg from Zurich and this became the Largest Activist investor in Europe.

Fun Fact: The firm was originally backed by the king of Activist investors Carl Ichan

A successful example of Cevian’s activist skills is where they urged British engineering firm Cookson to spin off its performance materials unit at the end of 2012.

This move drove up investment value for the company’s shareholders by over than 25%, according to Bloomberg.

However, it hasn’t all been rosy the firm has had two losses since inception. The first was a 20% loss when turning around a Norwegian Firm called CTG and a “small loss” with the insurance firm Munich Re

7. Clifton Robbins (Blue Harbour Group)

Clifton Robbins heads the Blue Harbour Group ($3.8 Billion AUM) which calls itself a “friendly activist Investor.”

They prefer to talk to management and bring about corporate changes, instead of using hostile tactics like proxy fights and leveraged buy outs which are popular with Carl Ichan.

A notable success by Blue Harbour was there stake taken in Jack in the box back n 2010. The company acquired a 5.2% stake in the company and urged the burger chain to do share buy backs and franchise more stores. Three years later the stock was up 75% according to the Wall Street Journal.

A notable Loss was Blue Harbours investment into CSK Auto Corp (an auto parts retailer) , the company reportedly lost 23% according to the Wall Street Journal in 2013.

8. Starboard Value

Starboard Value is an Activist Hedge Found founded in 2002 by Jeffrey Smith and Mark Mitchell, with Peter Feld.

The firm has battled with Macys, Yahoo and Brink’s Home Security. They are best known for tearing apart Darden Restaurants’ management in a 300-page presentation, that also included a blistering attack on the lack salting of Olive Garden’s pasta! According to Business insider.

In 2014, Smith took over as chairman of Darden Restaurants which runs Olive Garden and Longhorn Steakhouse, after which the stock shot up nearly 60%.

In a failed activist move, Starboard urged Office Depot and Staples to merge. This was stopped after a federal judge sided with the Federal Trade Commission to block the deal because of anti-trust issues.

9. Trian Fund

Trian Fund Management was founded by Wharton dropout Nelson Peltz, former President and COO of Triarc Companies (now known as The Wendy’s Company) and an ex-investment banker Ed Garden in 2005.

Trian earned a $830 million in profit following the merger of Triangle Industries and National Can Company in 1985.

In a notable win, the firm purchased Snapple from Quaker Oats for $300 million in 1997 and sold it just 3 years later for a whopping $1.5 billion!

In a notable loss, Trian lost a multimillion-dollar fight to win seats on DuPont’s board. Bill Ackman had said that Peltz’s biggest mistake in that battle was that he waited “too long,” according to Reuters .

10. Kyle Bass

Kyle Bass is a Legendary Hedge Fund Manager with a net worth of approximately $3 Billion. Bass got rich by predicting the subprime mortgage crisis in 2008 and betting against the U.S Housing market.

Along with other legendary investors such as Michael Burry (Big Short.) His investment style is that of a “top down” approach to investing looking at Economics, Politics and currency trades.

Kyle Bass Vs China

Although not classed as a traditional “Activist investor” I have included Kyle Bass on this list as he seems to be a “Political Activist” mainly against China.

Bass believes that China is a “paper dragon” and the influence central China is having in Hong Kong is causing many issues.

Kyle Bass Hayman Capital Quotes. www.motivation2invest.com/Kyle-Bass

He has also spoken publicly about the human rights violations in China and is very against their practices, in this sense you could also call Kyle Bass an Ethical Investor. Hayman Capital’s Hong Kong Dollar short so far has not paid off, but if it does we could see another Asian financial crisis!

Due to the unlikelihood of this occurring, Kyle Bass could generate exponential returns.

This strategy is very similar to the contrarian bet the Legendary George Soros made against the British Pound, in which he reportedly made over $1 Billion in a single day. In recent times, Bass has reiterated his predicted a collapse of the Hong Kong Dollar and has urged investors to move their assets to USD

Kyle Bass Quotes Gallery

Zillow Stock Valuation Gallery

Zillow Stock is Primed for Activist Investors after a recent decline, review our gallery below to find out whether the stock is undervalued, from our advanced valuation model.

Advanced Valuation Model Zillow stock Valuation 2

10 Brilliant Quotes by Jeff Ubben | Activist investing Strategy

by Admin | Nov 21, 2021 | Investing Legends, Stock Market

Jeff Ubben is an activist investor & hedge fund veteran.

As an activist investor he looks for companies which are poorly managed, he then buys enough shares to gain control & replace the management.

The idea is to increase the shareholder value of the company.

Previously he ran ValueAct Capital before launching his new fund Inclusive Capital Partners in 2020.

Ubben is now seeking to raise $8 billion for his new socially and environmentally conscious fund.
He recently joined the board of Exxon Mobil to help bolster their environmental credentials.

Investing Strategy: ESG Investing, Activist Investor, Hedge Fund, Ethical Investing

1. Learn from your Mistakes

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“Chess Masters spend their time after matches reviewing decisions that were bad” – Jeff Ubben (Activist investor)

Learning from your mistakes is a vital part of self improvement in any discipline. Self Awareness & reflection comes before self improvement.

2. Know what Risk your taking

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

There are Two Types of Risk, the first is called “Volatility” measured by “Beta” in academic finance. This basically compares how much a stock moves up or down relative to the market index. For example, a companies with non consistent earnings will be more volatile than mature company with more stable earnings.

Many Legendary Investors from Warren Buffett to Jeff Ubben, disagree that his is true “risk”. To them Risk is the permanent loss of principal, the money you invested.

3. Volatility = Opportunity

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“Volatility = Opportunity” – Jeff Ubben (Activist investor).

In Mandarin the word “Crisis” has two parts one means “Danger” and the other means “Opportunity”

When stocks crash, this volatility can equal an immense opportunity as stocks are on sale.

4. Hot Handed Fallacy

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“Just because your last trades/shots have been winners/losers doesn’t mean the next will be. They are statistically independent. ” – Jeff Ubben (Activist investor)

“Hot Hands” is a term from Basketball & Las Vegas Casinos, someone who has “hot hands” is thought to be “on a roll” and winning consistently. Jeff Ubben points out this is a fallacy in investing.

5. Make all the Mistakes

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“The Definition of an expert is one that makes all the mistakes you can, in a very narrow field” – Jeff Ubben Activist investor

To be an expert you must make mistakes, in investing It’s best to make these mistakes with very small sums of money before the numbers get bigger.

6. Take Short Term pain, for Long Term Gain

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“Big Players in Public Markets are not good at taking short term pain for long term gain” – Jeff Ubben (Activist Investor)

Most intuitional Investors & Hedge Funds “Vote with their feet” when a company releases their latest quarterly earnings report. This can offer an opportunity for the long term investor who can see past the noise.

7. Invest Ethically

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“Companies as governed today aren’t working for Society or Nature” – Jeff Ubben

Jeff Bezos once said you should invest based upon how much impact the company has on other peoples lives. Jeff Ubben is an activist investor and aims to change the way companies are run, similar to Carl Ichan or Bill Ackman.

8. Self Criticism to Self Improvement

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“Self Criticism is the secret to self improvement, negative feedback is a good thing” – Jeff Ubben (Activist investor)

Billionaire Ray Dalio likes to seek credible opinions from those who disagree with him, in order to understand his own thinking & blind spots.

9. Be Self Aware

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“The best shooters think they’re always cold & when their feelings tell them they have hot hands, they don’t listen” – Jeff Ubben (Activist investor)

10. Have a Good Investing Process

Jeff Ubben Hedge Fund investing quotes . Credit. www.Motivation2invest.com/Jeff-Ubben

“A Good process can result in bad outcomes & a bad process can result in good outcomes” – Jeff Ubben (Activist investor)

Although Luck plays a part in the outcome of every investment decision, a good process done consistently over time generally produces much better results!

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Jeff Ubben Quotes Gallery

Top 10 Hedge Fund Quotes by David Tepper | Investing Strategy

by Admin | Nov 20, 2021 | Investing Legends, Stock Market

David Tepper is one of the most successful hedge fund managers of all time, with a net worth of approximately $13 billion.

Tepper has an aggressive approach to investing & doesn’t mind sharing his bold opinions publicly. His Hedge Fund, Appaloosa mostly invests into distressed debt of companies close to bankruptcy.

This is very similar to another investing Legend: Howard Marks at Oaktree capital. Tepper was ranked the “Highest Earning Hedge Fund Manager” in 2012 with an estimated Salary of $2.2 Billion.

Fun Fact: Tepper’s Lucky Balls David Tepper keeps a brass replica of a pair of testicles on his desk which was a present from former employees. Tepper rubs the them for good luck during the trading day.

Fun Fact: David Tepper bought the Carolina Panthers in 2018. The professional football team cost an estimated $2.3 billion deal.

Investing Strategy: Deep Value Investor , Hedge Fund, Economics