Smead International Value Fund Class A Shares · NASDAQ:SVXAX
Smead International Value Fund Class A Shares — Smead Capital Management — Investor Presentation (February 2023)
28 slides from Smead International Value Fund Class A Shares's investor presentation, February 2023
Slide 1: Value Investing from Graham to Munger
SMEAD INVESTOR OASIS // SMEAD CAPITAL MANAGEMENT Value Investing from Graham to Munger Presented by Bill Smead Chief Investment Officer Past performance is no guarantee of future results.
Slide 2: Agenda
Agenda Ben Graham Value Investing Charlie Munger Investing Principles Past performance is no guarantee of future results.
Slide 3: Ben Graham Value Investing: Be an Investor, Not a Speculator
Ben Graham Value Investing BE AN INVESTOR, NOT A SPECULATOR Past performance is no guarantee of future results.
Slide 4: Understand the Difference Between Price and Value
Ben Graham Value Investing UNDERSTAND THE DIFFERENCE BETWEEN PRICE AND VALUE (MARGIN OF SAFETY) “The facts Graham looked for in both stocks and bonds were those that were easily measurable and current. The methodology outlined in Security Analysis placed greater emphasis on the here and now while di
Slide 5: Rake the Market for Bargains
Ben Graham Value Investing RAKE THE MARKET FOR BARGAINS Past performance is no guarantee of future results.
Slide 6: Buy the Graham formula
Buy the Graham formula E(2g + 8.5) x 4.4/Ten-year AAA Corporate bond Past performance is no guarantee of future results.
Slide 7: Focus on the ROE
Ben Graham Value Investing FOCUS ON THE ROE A Significant Pattern of Purchases by One or More Insiders (Officers and Directors) Officers, directors and large shareholders often buy their own company’s stock when it is depressed in relation to the current value which would be ascribable to the compan
Slide 8: Sins of Omission always dwarf sins of commission!
Ben Graham Value Investing DON’T EXPECT EVERY DECISION TO BE PERFECT Sins of Omission always dwarf sins of commission! Past performance is no guarantee of future results.
Slide 9: Smart Investing Does Not Require Higher Math
Ben Graham Value Investing SMART INVESTING DOES NOT REQUIRE HIGHER MATH “His approach is mathematical, relying on self-evident truths. His estimation of value, for example, is built upon a priori reasoning, not the actual experience of running the companies he bought. Thus, Graham tended toward chea
Slide 10: When in Doubt, Stick to Quality: Our Eight Criteria
Ben Graham Value Investing WHEN IN DOUBT, STICK TO QUALITY OUR EIGHT CRITERIA Required over entire holding period 1. Meets an economic need 2. Strong competitive advantage (wide moats or barriers to entry) 3. Long history of profitability and strong operating metrics 4. Generates high levels of free
Slide 11: Defend Your Shareholder Rights
Ben Graham Value Investing DEFEND YOUR SHAREHOLDER RIGHTS Past performance is no guarantee of future results.
Slide 12: Be Patient and Think for Yourself
Ben Graham Value Investing BE PATIENT AND THINK FOR YOURSELF “If you can see the light at the end of the tunnel, you are too late!” —Sir John Templeton Past performance is no guarantee of future results.
Slide 13: Agenda
Agenda Ben Graham Value Investing Charlie Munger Investing Principles Past performance is no guarantee of future results.
Slide 14: Defend Your Shareholder Rights
DEFEND YOUR SHAREHOLDER RIGHTS “Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you’re not going to make much different than a 6% return – even if y
Slide 15: Treat a Share of Stock as Proportional Ownership of the Business
Charlie Munger Investing Principles TREAT A SHARE OF STOCK AS A PROPORTIONAL OWNERSHIP OF THE BUSINESS “You have probably noticed that with his decisions about Berkshire Hathaway, Warren had pulled away from the teachings of Ben Graham. Maximizing long-term capital gain was not a Ben Graham strategy
Slide 16: Buy at a Significant Discount to Intrinsic Value
Charlie Munger Investing Principles BUY AT A SIGNIFICANT DISCOUNT TO INTRINSIC VALUE TO CREATE A MARGIN OF SAFETY 1. "A great business at a fair price is superior to a fair business at a great price." Charlie Munger 2. "Once we 'd gotten over the hurdle of recognizing that a thing could be a bargain
Slide 17: Make a bipolar Mr. Market your servant
Charlie Munger Investing Principles Make a bipolar Mr. Market your servant rather than your master Past performance is no guarantee of future results.
Slide 18: Be Rational, Objective, and Dispassionate
Charlie Munger Investing Principles BE RATIONAL, OBJECTIVE, AND DISPASSIONATE Past performance is no guarantee of future results.
Slide 19: Be Rational, Objective, and Dispassionate
Charlie Munger Investing Principles BE RATIONAL, OBJECTIVE, AND DISPASSIONATE Past performance is no guarantee of future results.
Slide 20: Ignorance Avoidance
Charlie Munger Investing Principles IGNORANCE AVOIDANCE “…the biggest financial euphoria episode in his career, because of the totality of it.“ —Charlie Munger Past performance is no guarantee of future results.
Slide 21: Margin of Safety
Charlie Munger Investing Principles MARGIN OF SAFETY “Warren did admit to suffering "fuzzy thinking" from the growth versus value debate when he was much younger. But he now understands "the two approaches are joined at the hip: Growth is always a component in the calculation of value, constituting
Slide 22: Multiple Mental Models
Charlie Munger Investing Principles MULTIPLE MENTAL MODELS Readers and lifelong learners Past performance is no guarantee of future results.
Slide 23: Moats and the Hard to Measure Stuff
Charlie Munger Investing Principles MOATS AND THE HARD TO MEASURE STUFF Past performance is no guarantee of future results.
Slide 24: Patience
Charlie Munger Investing Principles PATIENCE “The stock market was created to move money from impatient people to patient people!” —Warren Buffett Past performance is no guarantee of future results.
Slide 25: Back to Graham…
Charlie Munger Investing Principles BACK TO GRAHAM… “Think about the world of the last few decades. It has been a time of falling and low inflation, of plentiful (and pliant) labor, cheap energy, easy access to capital, globalization and a gradual shift in the world’s wealth from tangible things (en
Slide 26: Back to Graham…
Charlie Munger Investing Principles BACK TO GRAHAM… “In this environment, knowing how to invest in companies dealing in intangibles in a low-inflation environment is useless. You need to know how to invest in tangibles (the “builders of supply” as consultancy TS Lombard call them) in a middling-infl
Slide 27: Agenda
Agenda Ben Graham Value Investing Charlie Munger Investing Principles Past performance is no guarantee of future results.
Slide 28: Questions & Answers
Questions & Answers 877.807.4122 Individual Investors 877.701.2883 Advisors, Family Offices and Institutional Investors 2777 East Camelback Road smeadcap.com Suite 375 info@smeadcap.com Phoenix, AZ 85016
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