Investing Experts It ultimately comes down to free cash flow yield
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Nov 17, 2025 Travis Koldus, founder of The Contrarian and an analyst focused on REITs and valuation, shares fascinating insights into the world of contrarian investing. He explains the importance of price discovery and highlights the current mispricings in stocks. Travis dives into the nuances of REITs amid rising interest rates, and discusses undervalued opportunities in small caps and global markets. He critiques traditional metrics like price-to-sales and champions investing in companies with strong free cash flow yields, urging listeners to view market volatility as a chance for discovery.
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Passive Flows Create Active Opportunities
- Passive, valuation-insensitive investing has amplified mispricings across markets.
- That creates a 'golden age' for active investors to find undervalued opportunities.
Free Cash Flow Yield Is The Key Driver
- Free cash flow yield explains many recent winners and losers across sectors.
- Large-cap tech stocks often have low FCF yields while other sectors offer double-digit yields.
Realty Income’s Long Valuation Cycle
- Realty Income was unloved early, then loved and overpriced, then consolidated for years.
- That long consolidation reset valuation and could set up future outperformance.
