David Tepper on Bloomberg

[frommi]

 

A bear might be too unpopular to appear on TV, like you suggest… But is it really necessary to throw caution to the wind? Both Tepper and Cooperman seem serious investors to me. Certainly they both have been extremely successful! What need do they have to appear on TV and express views contrary to their true beliefs?

 

Gio

 

Isn`t this normal hedge fund behaviour? When they start talking about their investments on TV/press they typically want to get rid of them. They need liquidity to sell.

[giofranchi]

Buffett..Buffet... ah, right, yeah, I know the guy, he's interesting.

 

We suggest that this [P/E] limit be set at 25 times average earnings, and not more than 20 times those of the last 12-month period.

--Ben Graham, 1972

 

If you check the link I had posted, you get a P/E of 25.8 times average earnings (Shiller P/E), and a P/E of 19.3 times TTM earnings.

 

Ben Graham might not have been a truly outstanding investor... but he knew one thing or two about "value investing"! ;)

 

Gio

[BargainValueHunter]

Stephanie Ruhle is an embarrassment. I cringe whenever I watch her interviews... and I only watch them when I'm really interested in the guest.

If you can, try to find the interview Stephanie Ruhle did with Tepper earlier this year (I think it was February). She seemed drunk or something and she was so fan-girly with him that it looked like she was dangerously close to sexually assaulting the guy. For his part he seemed patient but a little bit freaked out by her behavior. I didn't see her on air for many months after that interview.

[mvalue]

I would love any other input on guys like Tepper and also Larry Robbins of Glenview using S&P operating earnings for PE multiples to justify being bullish.

 

Regardless of where these guys diverge from classic value investing, they clearly have fantastic track records. In my experience forward operating earnings are almost ALWAYS mid-teens and don't mean shit. Yet, Tepper seems to play the market like a fiddle. Is it because they know the crowd goes for forward operating PEs and will trade based on their view of that?

[yadayada]

Buffett..Buffet... ah, right, yeah, I know the guy, he's interesting.

 

We suggest that this [P/E] limit be set at 25 times average earnings, and not more than 20 times those of the last 12-month period.

--Ben Graham, 1972

 

If you check the link I had posted, you get a P/E of 25.8 times average earnings (Shiller P/E), and a P/E of 19.3 times TTM earnings.

 

Ben Graham might not have been a truly outstanding investor... but he knew one thing or two about "value investing"! ;)

 

Gio

 

But we did have a extra hard shock in 2008 and 09. So earnings dipped more then they usually did because the system was just shellshocked for a while. When looking at several cyclicals there is still a lot of pent up demand. A lot of companies held off extra long on replacing and that is only now starting to happen again. So that is why I think a lot of investors are more optimistic despite the high shiller PE.

[abitofvalue]

I would love any other input on guys like Tepper and also Larry Robbins of Glenview using S&P operating earnings for PE multiples to justify being bullish.

 

Regardless of where these guys diverge from classic value investing, they clearly have fantastic track records. In my experience forward operating earnings are almost ALWAYS mid-teens and don't mean shit. Yet, Tepper seems to play the market like a fiddle. Is it because they know the crowd goes for forward operating PEs and will trade based on their view of that?

 

Part of Tepper's job is asset-allocation.  His hedge fund does every thing from equities to distressed debt. So I imagine part of the decision making process for him is figuring out how much to put in a particular asset class.  I am sure P/E is not the only thing he looks at but probably helps him figure out the zone of reasonableness.  It's a useful short-hand when discussing the market as a whole.  Maybe he thinks 14 is reasonable but 18 is expensive? all he does in the video is say 16 for current year and 14 for next isn't too out there.

[mvalue]

Right but the market is not 16x it's 19x. People saying 16 are using operating earnings. I don't understand that.