Value Hive Podcast [REPLAY] Deep Value Investing w/ @BuyCheapAndPray and @theotheraharon
Apr 11, 2025
Join Ina, known as @BuyCheapAndPray, a contrarian deep value investor with a global outlook. They dive into the essentials of deep value investing, contrasting it with typical strategies and sharing lessons from past missteps. Discussions include the art of portfolio construction and the balance between risk and reward. Ina discusses the emotional aspects of investing and the significance of thorough research. Tune in for insights on undervalued stocks and strategies for adapting to market shifts!
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Heuristic Screening Techniques
- Screen for stocks at 52-week or multi-year lows as many are distressed but some offer great turnaround potential.
- Identify successful investment cognates by examining ROE, margins, and growth of companies in similar fields.
Position Sizing Based on Quality
- Buy stocks near multi-year lows to avoid cyclical traps and assess company quality by tangible book value evolution and dilution.
- Adjust position size based on quality and risk; very low weights for trash and higher weights for quality companies.
Manage Holding Times and Scaling
- Define your holding timeline clearly to avoid holding bad investments too long due to wishful thinking.
- Scale into distressed companies gradually and accept shorter holding periods for bounce-back trades.