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What's Next for Bond Yields in 2022?
The data shows the entire 2022 decline can be explained by just simply higher bond yields. A change in the price, the cost of money, should necessarily impact the multiple you pay for an earning stream or a cash flow stream. So when the rate went up, you'd expect to have a fall in the multiple that's logical. And I think I do think a large portion of the move, the fall in equities in 2022, could probably be attributed to that.
Trey chats with Dr. Graeme Forster. Together they discuss the success of legendary investors such as Jim Simons & Orbis' founder Allan Gray, Graeme's shift from mathematics to value investing, and much more!
Graeme is the Director and Portfolio Manager of Orbis, which currently manages around $30B.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:30 - Graeme’s journey from mathematics to value investing, & exploring legendary investors like Jim Simons.
26:14 - How Orbis’ founder and billionaire Allan Gray’s investing flexibility led to his success.
36:35 - How Graeme balances the macro with a bottoms up approach.
52:11 - A thesis which Graeme calls the Great Misallocation.
58:40 - How good & cheap companies outperform especially during bear markets.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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