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Donald Yacktman: "Viewing Stocks as Bonds" | Talks at Google


Guest notorious546
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I caught that.  Sort of rambling to me, but worth watching.  Interesting that he said (paraphrasing): Value managers don't have nice offices.  if you find a value manager with an opulent office you have to ask yourself where's the disconnect.  Made me think of Bruce Berkowitz.

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Guest notorious546

.... also interseting... he is a mormon

 

first time i've heard an PM highlight that, or even mention it come to think of it.

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I caught that.  Sort of rambling to me, but worth watching.  Interesting that he said (paraphrasing): Value managers don't have nice offices.  if you find a value manager with an opulent office you have to ask yourself where's the disconnect.  Made me think of Bruce Berkowitz.

 

Nice discussion, but I wish that someone would have asked how he quantifies "risk adjusted"  and what is his favorite valuation method? 

 

Maybe Saurabh, Rishi or one of the google guys who had an offline discussion can shed some light.  Thanks to this group we get to see alot of these talks!!

 

 

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I caught that.  Sort of rambling to me, but worth watching.  Interesting that he said (paraphrasing): Value managers don't have nice offices.  if you find a value manager with an opulent office you have to ask yourself where's the disconnect.  Made me think of Bruce Berkowitz.

 

Nice discussion, but I wish that someone would have asked how he quantifies "risk adjusted"  and what is his favorite valuation method? 

 

Maybe Saurabh, Rishi or one of the google guys who had an offline discussion can shed some light.  Thanks to this group we get to see alot of these talks!!

 

Chetan,

 

Yacktman has talked about this in the past. Basically, they buy when current FCF yield + reasonable growth rate is in double digits. For the types of businesses they buy, forward growth rate is easier to estimate since these businesses have a narrow range of outcomes.

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  • 2 weeks later...
Guest Grey512

I caught that.  Sort of rambling to me, but worth watching.  Interesting that he said (paraphrasing): Value managers don't have nice offices.  if you find a value manager with an opulent office you have to ask yourself where's the disconnect.  Made me think of Bruce Berkowitz.

 

Nice discussion, but I wish that someone would have asked how he quantifies "risk adjusted"  and what is his favorite valuation method? 

 

Maybe Saurabh, Rishi or one of the google guys who had an offline discussion can shed some light.  Thanks to this group we get to see alot of these talks!!

 

Chetan,

 

Yacktman has talked about this in the past. Basically, they buy when current FCF yield + reasonable growth rate is in double digits. For the types of businesses they buy, forward growth rate is easier to estimate since these businesses have a narrow range of outcomes.

 

If I am not mistaken, that is similar to how Glenn Greenberg thinks.

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I caught that.  Sort of rambling to me, but worth watching.  Interesting that he said (paraphrasing): Value managers don't have nice offices.  if you find a value manager with an opulent office you have to ask yourself where's the disconnect.  Made me think of Bruce Berkowitz.

 

Nice discussion, but I wish that someone would have asked how he quantifies "risk adjusted"  and what is his favorite valuation method? 

 

Maybe Saurabh, Rishi or one of the google guys who had an offline discussion can shed some light.  Thanks to this group we get to see alot of these talks!!

 

Chetan,

 

Yacktman has talked about this in the past. Basically, they buy when current FCF yield + reasonable growth rate is in double digits. For the types of businesses they buy, forward growth rate is easier to estimate since these businesses have a narrow range of outcomes.

 

Thanks Rishi.  You are right.  I first came across that a few years ago.  I think Gurufocus had a nice interview on it.  I guess the part that is ambiguous for me is how do you adjust for risk.  ie, how do quantify how risky a company is. 

 

BTW, nice call on PCP!!  I bought around 200 this summer, was hoping for it to go down some with the weakness in the oil space.  But Buffett beat us to it.  You have good taste :)

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I caught that.  Sort of rambling to me, but worth watching.  Interesting that he said (paraphrasing): Value managers don't have nice offices.  if you find a value manager with an opulent office you have to ask yourself where's the disconnect.  Made me think of Bruce Berkowitz.

 

Nice discussion, but I wish that someone would have asked how he quantifies "risk adjusted"  and what is his favorite valuation method? 

 

Maybe Saurabh, Rishi or one of the google guys who had an offline discussion can shed some light.  Thanks to this group we get to see alot of these talks!!

 

Chetan,

 

Yacktman has talked about this in the past. Basically, they buy when current FCF yield + reasonable growth rate is in double digits. For the types of businesses they buy, forward growth rate is easier to estimate since these businesses have a narrow range of outcomes.

 

Thanks Rishi.  You are right.  I first came across that a few years ago.  I think Gurufocus had a nice interview on it.  I guess the part that is ambiguous for me is how do you adjust for risk.  ie, how do quantify how risky a company is. 

 

BTW, nice call on PCP!!  I bought around 200 this summer, was hoping for it to go down some with the weakness in the oil space.  But Buffett beat us to it.  You have good taste :)

 

Chetan,

 

In the talk Yacktman talks about focusing on companies with a narrow distribution of outcomes. So, I think that's how the adjust for risk.

 

PCP, Buffett beat us all to it. In fact, given that debt is so cheap for BRK, if we account for the debt raised to buy PCP, Buffett got it at marginally higher price than the ~$195.

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