How Harris Oakmark thinks about and defines value investing
Mid-cycle earnings and why they are important (using the coin flip analogy)
CBRE example of mid-cycle earnings
Banks and SCHW example of mid-cycle earnings
Additional common adjustments they make to get to true normalized economic earnings power
Estimating normalized earnings for software and faster-growing tech companies (and Salesforce example)
Amazon and Alphabet examples
Even more adjustments for SBC, amortization, and non-recurring items
Lithia Motors example
First Citizens example
Quick discussion on modeling share repurchases and benchmarking capital allocation decisions on buying back stock at a discount
How Harris Associates determines the appropriate P/E ratio for different businesses
Masco example and choosing an appropriate peer comp group
Thoughts around P/E multiple expansion
American Express example for choosing a fair P/E multiple
Dealing with stocks with a wider range of outcomes
How they pick a required rate of return
Idea generation and research process at Harris Oakmark
What Harris looks for in hiring an analyst
Humility and willingness to accept constructive feedback
The primary responsibilities of the Director of Research at Harris Associates
Unique cultural attributes of working at Harris Associates
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