Behind the Balance Sheet #46 The Numbers Lady
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Apr 24, 2025 Jennifer Wallace, CIO of Summit Street Capital Management, shares her journey from liberal arts to value investing under the guidance of legends like Bruce Greenwald. She discusses her strategy of targeting undervalued, high-quality companies and the importance of cash management, especially during market volatility. Jennifer elaborates on the characteristics that make companies attractive for acquisition and stresses the need for discipline in long-term investments. Plus, her quirky advice on avoiding friendships with CEOs adds a humorous touch!
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Apprenticeship with Bob Bruce
- Jennifer Wallace learned value investing by working closely with Bob Bruce, who had connections with Warren Buffett.
- Her first assignment was to study ValueLine reports to let the numbers tell a story about companies.
Investing Balances Quality and Value
- Successful investing balances quality and value by buying good companies at bargain prices.
- She avoids leverage and prefers companies with strong balance sheets for recovery potential.
Financials are Complex Black Boxes
- Banks and insurance firms are tough to evaluate due to leverage and asset-liability mismatches.
- These industries’ failures in past cycles reveal difficulties in reliably assessing their financial safety.
