Attached is our latest list of stocks passing value screens (low P/E, low EV/EBITDA, etc.), which don’t meet our investment criteria - and our reasoning.
This may help you avoid some ‘value traps’, and stocks that aren’t sufficiently attractive compared to opportunities available today.
For reports of stocks that pass our quantitative and qualitative standards:
These are the times when get you the best deals. Pabrai talks about TAV's (Turkish airport operator) purchase of the Almaty (Kazakhstan) airport at the height of the pandemic when air traffic (and revenue) was zero.
28:00 Buybacks at low multiples
Shareholder returns are magnified when repurchases are executed at low multiples of earnings/assets - these are the kind of stocks we look for.
35:00 Anomalies
Look for anomalies between cash flows and pricing - and understand the reasons behind them. Such price/value anomalies are our bread and butter.
50:00 Charlie Munger Auto Additives Buy
Pabrai relates an interesting story of Munger buying up the bank debt of an auto additives company - run by an eccentric operator - at 30-40 cents on the $. Hilarity ensues.
Other industry/country specifics:
17:45 Duty-free economics
24:00 Coal industry
28:30 India valuations
30:45 Auto dealer economics
43:00 Office vacancies
For reports on the best investment values in stocks worldwide: