In 2017, when this was originally presented as an idea and was purchased, the most glaring signal of that hidden value you're not seeing on the income statement was in the price of its product. Netflix has a huge lead, and it's transitioning from a more local media business globally to much more of a global scale business. As far as the price action on the stock, it's been a bit of a roller coaster ride. The stock was around $380 a share pre-COVID in February 2020. Rose all the way to $690 a share in November 2021. And now we're back down to $360. So below the pre-CO VID share price.
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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