Understanding Intrinsic Value and Stock Buybacks

This chapter explores the concept of intrinsic value in relation to stock buybacks, with a focus on Facebook's valuation as an investment. The discussion underscores the importance of assessing a stock's price against its perceived value and the need for caution in making investment decisions.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

In today’s episode, Trey Lockerbie welcomes back Bill Nygren and Mike Nicolas from Oakmark Funds, which currently manages over $60B in assets. When Bill and Mike were on the show last time back in April of 2020, we discussed Bank of America. Since then, BOA’s stock price has risen over 100%, so Trey takes the opportunity to discuss how they value the stock today. But, the main point of today's discussion is to take a deep dive into a potentially surprising value pick: Facebook.

IN THIS EPISODE, YOU'LL LEARN:

(01:47) How Bank of America is poised for growth over the long term
(16:19) How Facebook is an asset-light, money printing machine with some moonshot R&D that is potentially undervalued
(42:55) How Oakmark has got comfortable with companies like Facebook, Netflix, and Amazon as “value stocks”
(46:13) The growth still ahead for Facebook, and much much more

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Masterworks Website

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

Bluehost
Fintool
PrizePicks
Vanta
Onramp
SimpleMining
Fundrise
TurboTax

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests