Howard Marks on Avoiding Losers and Building Wealth Consistently
In a recent Wharton School interview, Howard Marks warned that market optimism often lifts prices while bad news is ignored, leaving valuations elevated longer than many expect. He emphasized that the S&P 500 is not cheap by history but is cheaper than recent peaks, underscoring that price, not just quality, drives returns. Marks dismissed timing the bottom as futile, urging investors to focus on buying assets at sensible prices and maintaining strict risk control. His core message: consistent, low‑cost entry beats chasing trends for long‑term wealth building.
This Week’s Deep-Value Landscape: Acquirer’s Multiple Large-Cap Screen
The Acquirer’s Multiple® large‑cap screen shows that cash‑rich companies across energy, financials, housing and mature franchises are trading at compressed multiples despite strong free‑cash‑flow yields and active shareholder returns. Market sentiment remains skewed toward AI‑driven growth narratives, leaving value‑oriented businesses...
How Mohnish Pabrai’s Mental Models Can Improve Investment Returns
Mohnish Pabrai urges investors to replace complexity with simple, disciplined mental models. He stresses treating investing as a duty, focusing on businesses that solve real problems rather than chasing profit headlines. Patience, temperament alignment, and avoiding self‑pity are presented as...
Inside Ed Wachenheim’s Portfolio: Why Greenhaven Is Doubling Down on Homebuilders
Greenhaven Associates, led by Ed Wachenheim, disclosed a $6.07 billion equity portfolio that remains heavily weighted toward homebuilders and automotive cyclicals. The top ten holdings make up 84.25% of assets, with Lennar, Toll Brothers, PulteGroup and D.R. Horton together representing roughly...
McDonald’s Corporation (MCD): Our Calculation of Intrinsic Value
McDonald’s Corp., the world’s largest fast‑food franchise, generated a discounted‑cash‑flow (DCF) intrinsic value of $180‑$190 per share based on an 8% discount rate and 3% terminal growth. The model attributes $34.1 billion of present‑value cash flows and a $136 billion terminal value...
Westlake Chemical Partners LP (WLKP): Deep Value Chemical-Related Business
Westlake Chemical Partners LP (WLKP) operates fee‑based ethylene production facilities and sells almost all output to its parent, Westlake Corp, under long‑term contracts. The partnership generates $1.17 billion in revenue with strong margins—about 30% gross and 27% operating—and delivers over $200 million...
What Daniel Loeb’s Latest Letter Reveals About Market Risk and AI
Daniel Loeb’s Q1 2026 investor letter outlines a risk‑first framework that helped Third Point post a modest decline while still beating the market. The firm began trimming positions in February, ahead of a private‑credit unwind and an Iran‑driven oil price...
Bruce Berkowitz Portfolio Analysis: Top 10 Positions and High Conviction Bet
Bruce Berkowitz’s Fairholme Capital Management disclosed a $1.43 billion equity portfolio that remains extraordinarily concentrated, with St. Joe Company comprising roughly 80% of assets. The top ten holdings account for 99.8% of the portfolio, underscoring a high‑conviction, asset‑driven value approach. Recent filings...
Cliff Asness on Diversification: The Real Risk Investors Miss
Cliff Asness and AQR argue that a recent positive stock‑bond correlation is not a cure for diversification problems. The report warns investors against swapping bonds for assets that merely track equities, such as private credit, leveraged equity products, or Bitcoin....
Top Superinvestors Are Buying Broadcom Inc. (AVGO)
Recent 13F filings reveal a wave of institutional buying in Broadcom Inc. (AVGO), with major investors such as Point72, Fisher Asset Management, and Bridgewater increasing stakes by billions of dollars. The purchases reflect confidence in Broadcom’s AI‑driven semiconductor demand, pricing...
Howard Marks Warns Private Credit Faces a Crucial Test for Investors
Howard Marks warns that private credit is entering a critical scrutiny phase as rapid asset growth has compressed yields, narrowed spreads, and attracted a flood of new managers. He cautions investors in listed asset managers and lenders to assess whether...
Prem Watsa Portfolio Analysis: Top 10 Positions and Key Changes
Fairfax Financial Holdings disclosed an equity portfolio of roughly $2 billion, with the top ten positions accounting for about 86% of assets. The fund remains heavily weighted toward commodity‑linked and industrial cyclicals such as Orla Mining, Occidental Petroleum and Cleveland‑Cliffs. Recent...
Visa Inc. (V): Our Calculation of Intrinsic Value
A weekly DCF model values Visa Inc. at an enterprise value of $546.6 billion, translating to an equity value of $540.4 billion or $275‑$285 per share. The current market price sits near $302, suggesting the stock is about 7% overvalued. Visa’s asset‑light,...
Pilgrim’s Pride Corporation (PPC): Deep Value Poultry Producer
Pilgrim’s Pride Corp (PPC) is highlighted as a deep‑value poultry producer with an Intrinsic Value‑to‑Price ratio of 1.40, suggesting a 40% discount to conservative valuation. The company reports $18.5 billion in revenue, $1.08 billion net income, and free cash flow above $650 million,...
Pzena: Value Vs. Value-Light – Why Investors Are Leaving Returns on the Table
Pzena Asset Management warns that many investors claim to follow value investing but actually employ “value‑light” strategies that skip the cheapest stocks. The firm shows that this dilution drags long‑term returns and misrepresents risk, as passive value indices often contain...