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Avoid the Unforced Investment Errors Even Billionaires Make

The Big Picture

My advice was not based on fear of a bubble or the (over)valuation of Yahoo; rather, I suggested employing a regret minimization framework.2 He could take any job he wanted for the rest of his lifeor none at all. Torn about what to do, he asked my opinion. All of these strategies have been money-losers this century.

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The Contrarian’s Guide: Inside David Dreman’s Value Investment Strategy

Validea

Beyond Cheap: Quality Matters While valuation was crucial, Dreman wasn’t interested in just any cheap stock. The strategy showed particular strength in 2003, 2004, and 2006, with returns exceeding 30% in each of those years. Defining a Contrarian Stock How exactly did Dreman identify contrarian opportunities?

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Thinking Big and Survivorship Bias

The Irrelevant Investor

After five years as a private business, they went public in 2004 at a valuation of $27B. In Google's 2004 Founders’ IPO Letter , Larry Page wrote: We will not shy away from high-risk, high-reward projects because of short term earnings pressure. Some of our past bets have gone extraordinarily well, and others have not.

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Tata Technologies IPO Review – GMP, Details & Much More

Trade Brains

Their last offer being from Tata Consultancy Services in 2004. Looking at its valuations, Tata Tech’s peer trades at an Average PE of 62x, which is significantly higher than Tata’s 32.5x. Tata Technologies IPO Review: The Tata Group is finally coming out with an IPO after 19 Long Years. KPIT currently trades at the highest PE of 82.6x.

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Joel Greenblatt’s Magic Formula: Combining Value and Quality

Validea

He back tested the strategy from 1988 to 2004 and found that a portfolio of the top 30 magic formula stocks, rebalanced annually, would have returned 30.8% The company’s consistent profitability and attractive valuation make it a top pick for the Greenblatt model. per year on average, compared to 12.4% Michelle Wine Estates.

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Transcript: Joe Barratta of Blackstone

The Big Picture

In the short run, there can be distortions in public market valuations as we saw in 2001 and we saw prior to that in 2007, and prior to that in 2000, in ‘99. Probably somewhere around 2004 or ‘05, we started doing things by ourselves. Valuations go up and you saw it, of course, in the late ‘90s, in the tech sector. BARATTA: Yes.

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Market, Stocks, and Bonds Lessons Learned from 2022 | Weekly Market Commentary | January 9, 2023

James Hendries

economy to avoid recession, and support above-average valuations. The relationship between inflation and stock valuations is a strong one, as shown in Figure 2 , which meant the market could no longer support price-to-earnings (P/E) ratios over 20 (the same goes for the relationship between interest rates and stock valuations).