I am one of the few last standings, I still like value traps, I think that value is it's own catalyst. However, I want a 5-6% dividend+buyback for these type of companies.
I cannot go however on the NAV value companies type if they don't provide a minimum capital return
Thanks. I guess that a 5-6% yield can be a catalyst by itself. Depending on the discount, of course.
Also, I believe the more diversified you are, the more your valuation work matters, as opposed to catalysts. You can handle something "being cheap" for a longer time if it's a part of a larger portfolio of dirt cheap names, whereas I cannot "afford" a 30% position that doesn't re-rate over a 3 year time frame.
Excellent observations. Nice post.
"So, where await the next extremely pessimistic sentiments, fellas??"
https://www.youtube.com/watch?v=RDrfE9I8_hs
Thanks!
“When an asset-play lacks a catalyst or growth, capital allocation becomes crucial!
Being cheap is not enough. This is where you’ll get a value trap.” - I agree and also made that learning last year.
Nice thinking.
I am one of the few last standings, I still like value traps, I think that value is it's own catalyst. However, I want a 5-6% dividend+buyback for these type of companies.
I cannot go however on the NAV value companies type if they don't provide a minimum capital return
Thanks. I guess that a 5-6% yield can be a catalyst by itself. Depending on the discount, of course.
Also, I believe the more diversified you are, the more your valuation work matters, as opposed to catalysts. You can handle something "being cheap" for a longer time if it's a part of a larger portfolio of dirt cheap names, whereas I cannot "afford" a 30% position that doesn't re-rate over a 3 year time frame.
Great to think about the hurdle rate. Will help you avoid dead-money value traps. Best of luck in 2024!
Thanks! Likewise, Michael
Very good insights. Well done!
Appreciate it!
I like how you are understandable and honest. Thank you.
Thanks Filip!