How to Buy Great Businesses at Reasonable Prices

A lot of times, value investing is confused with buying statistically cheap stocks. The whole point is that you want to buy companies that are undervalued. If a company doubles in five years and it's growing 20% a year, the time is not on your side. You don't know when this will happen.

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Clay Finck chats with Vitaliy Katsenelson about what Vitaliy looks for in the companies he invests in, how he thinks about the discount rate in his valuation process, and more.

Vitaliy is the CEO of Investment Management Associates and is the author of the Little Book of Sideways Markets.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

03:03 - How Covid-19 has changed the game of value investing.

18:44 - How Vitaliy ensures that managements incentives are aligned with that of the shareholders.

21:22 - Why buying great companies might not be a good investing strategy.

30:53 - Whether Vitaliy believes that 100% stocks can give investors a well-balanced portfolio.

38:34 - What Vitaliy thinks about China’s rise as a global powerhouse and how it might affect the financial markets.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Vitaliy Katsenelson’s website Contrarian Edge.
Vitaliy’s book, The Little Book of Sideways Markets.
Listen to Vitaliy’s articles here.
Related episode: Listen to MI125: Investing Like Warren Buffett w/ Jake Taylor, or watch the video.
Get a FREE audiobook from Audible.

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Connect with Vitaliy: Website | LinkedIn | Twitter

Connect with Clay: Twitter

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