Expert: Ricky Sandler - Valuation is an opinion, mispricing is an opportunity | Hearts & Minds

11 snips

Nov 2, 2022

Ricky Sandler, Founder and CEO of Eminence Capital, discusses valuation vs. mispricing in investing. Insights from Hearts and Minds conference, team structures, Ashland Global analysis, investment strategies, company attributes, and valuable advice on past decisions.

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ADVICE

Protect Investments Without Shorting

Individual investors should avoid shorting stocks directly due to its complexity and risk.
Instead, manage risk by building cash reserves, using broad-market hedges, not overextending equities, and avoiding leverage.

INSIGHT

Investment Philosophy: Ownable Mispriced Stocks

Buy "ownable" businesses mispriced due to known reasons that will correct in 2-3 years.
Ownable means sustainable, trusted management, good cash growth, and no major structural risks.

ANECDOTE

Green Mountain Coffee Mispricing Example

Ricky detailed investing in Green Mountain, a coffee company mispriced due to losing international and cold beverage businesses.
Market undervalued core earnings due to messy financials and misunderstood competitive advantages in manufacturing.

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Today we chat to Ricky - is the founder, Chief Investment Officer and Chief Executive Officer of Eminence Capital. Ricky founded Eminence in 1999 and has grown it into a $5.7 billion dollar asset manager. He's speaking at the Hearts & Minds conference on the 18th of November.

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