This chapter contains of a plethora of value investing examples. Klarman details a number of securities where investors who paid attention to fundamentals (e.g. strong businesses masked by unprofitable divisions, or companies...
Read MoreLCA Vision (LCAV) is a provider of laser vision corrective surgeries. Demand for these non-essential, expensive surgeries is strongly correlated to levels of consumer confidence. As one can imagine, this correlation has resulted...
Read MoreNorth American Galvanizing and Coatings (NGA) provides rust protection for metals for commercial and industrial customers. It trades with a P/E of just 8, despite the fact that it has no debt and just booked record earnings in...
Read MoreNewell Rubbermaid (NWL) is a familiar stock on this site. Back in August of 2008, we thought it was still a bit too pricey at $19/share. But starting in December of 2008, it began to look attractive, having reached...
Read MoreFor value investors, a drop in the price level of the stock market does not necessarily mean the value of these businesses has changed. But there are exceptions. Companies that have certain types of pension plans will...
Read MoreInvestors will often gauge a business’ ability to make money by looking at its operating income over a period of several years. But investors who ignore the line items on the income statement which fall below operating...
Read MoreSometimes, there are so many value investments available that the only constraint on the investor is a lack of funds. Most times, however, Klarman finds it difficult to find value investment opportunities. Investors can spend a...
Read MoreBusiness value cannot be precisely determined, Klarman asserts. Not only do a number of assumptions go into a business valuation, but relevant macro and micro economic factors are constantly changing, making a precise valuation...
Read MoreFor value investors, a great company does not necessarily equal a great investment. Why? Because the price of that investment must be compared to its value. Such is the case for Hammond Power Solutions (HPS.A), a...
Read MoreSkechers (SKX), maker of men’s and women’s shoes, recently purchased a used car for $120,000. Natural gas producer Chesapeake Energy (CHK), just bought a historical map collection for $12.1 million. These purchases...
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