Grant's Current Yield Podcast INTERNATIONAL VALUE MYSTERIES
Jul 10, 2024
Guest David Samra and hosts discuss international value investing strategies, importance of learning from mistakes, analyzing top holdings' profitability, patience in investing, valuations of US vs. international stocks, and Jack Ma's investment strategies.
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Valuation Anchors Guide Value Decisions
- Value investing depends on narrowing cash-flow estimates and attaching an appropriate valuation anchor like a long-term risk-free rate.
- David Samra uses long historical averages (30 years) and a 6% anchor to judge expected returns and PE expectations.
Why International Markets Favor Value
- Non-US markets offer more value opportunities because they're less liquid, have lower-quality businesses and fewer growth platforms.
- Samra notes US capital dominance and smaller, slower-growing foreign companies create frequent mispricings to exploit.
Report Mistakes To Institutionalize Learning
- Report mistakes publicly to learn and reduce repeat errors.
- Samra writes shareholder letters naming errors to shame the team and ensure lessons stick during good performance stretches.