deep value investing - valuewalk · deep value investing: ... case study: popular holdings ......

Deep Value Investing:How The World's Best Investors Beat The Market

Tay Jun Hao LLB Law (Hons)theasiareport.com

BP PLC

Copyright 2015 @ The Asia Report


Why not learn adopt the strategies and habits of people

who’ve already succeeded?

Off to the Race Tracks


• Leon Cooperman $3.7 Billion

• Edward Lampert $2.9 Billion

• Bill Ackman $2.5 Billion

• Howard Marks $2.0 Billion

• David Einhorn $1.9 Billion

• Seth Klarman $1.5 Billion

The Timeless Value Approach



Is it better to buy cheap companies at good prices, or wonderful

companies at fair prices?

What is Deep Value?

Copyright 2015 @ The Asia Report Image Source; Tweedy Brown, What Has Worked in Value Investing

Results of Deep Value


Deep Value in Emerging Markets


We must have earned an average of some 20 per cent per year from this source....

- Graham on buying stocks selling below liquidation value



Is Buffett a Deep Value Investor?

“You have to turn over a lot of

rocks to find those little

anomalies.

You have to find the

companies that are off the

map – way off the map.

You may find local

companies that have

nothing wrong with them at

all…


Is Buffett a Deep Value Investor?

Having a lot of money to

invest forced Berkshire to buy

those that were less

attractive.

With less capital, I

could have put all my

money into the most

attractive issues and

really creamed it.”

If we avoid the losers, the winners will take care

of themselves.- Howard Marks, Oaktree Capital

Annualized Gains of Funds – 19% per annum net fees

The Heart of Deep Value Investing


Case Study: Popular Holdings


• Suffered a "loss" in 2009, mainly non cash charge

• Deleveraged balance sheet since 2009

• Core business was producing significant free cash flow



What’s Our Downside? – 2010 Annual Report

• Market Capitalization at 2011:

$130 Million, $0.16 per ShareCopyright 2015 @ The Asia Report


Where’s the fear?


Investing is simple, but never easy.

- Warren Buffett


This is neither a recommendation to purchase or sell any of the shares, securities or other instruments mentioned in this document or referred to; nor can this course material and/or document be treated as professional advice to buy, sell or take a position in any shares, securities or other instruments.

Legal Disclaimer


• Market cap: $32.5 mil

• Book Value: $46.9 mil

Case Study


Case Study


• Book Value: $62.3 mil

• Real P/B: 0.5

• Dividend Yield: 5.3%+

Case Study


Deep Value cont.


Deep value cont.


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deep value investing - valuewalk · deep value investing: ... case study: popular holdings ......

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