We're very much fans of Buffett who has evolved to be an investor that buys a great business and holds it for a very long time. One thing to keep in mind that's driving this difference is Warren has permanent capital. We don't. And he just has a different permanent capital approach to those businesses than we do. Your incentives versus Warren's are different. Are you continually evaluating a sell target for Netflix? For example, we saw the stock really run up post COVID through the end of 2021 yet the market realized that the accelerated growth wasn't going to persist. The value growth in Netflix has exceeded what our expectations were when we first made the investment. Same for Google, MasterCard
Clay Finck chats with Tony Coniaris about the investment process and philosophies at Oakmark, Netflix as a value investment, Netflix stock valuation, and much more!
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:50 - Oakmark’s criteria for a quality value investment.
07:44 - What it means to have a bottoms up investment approach rather than a top down approach.
11:39 - Why Netflix qualifies as a value investment for Oakmark.
15:30 - Tony’s thoughts on the volatility of the stock’s price action.
18:13 - How Tony thinks about valuing Netflix.
30:20 - Tony’s thoughts on a recent addition to Oakmark’s holdings - Willis Towers Watson.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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