Lengthy Interview Witn Mario Gabelli On His Top Picks
Published on Oct 13, 2016
I sat down with billionaire investor Mario Gabelli in Rye, New York. We spoke about his picks such as CST Brands, Viacom, Genuine Parts, VW and others. I met him in July.
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tell them what to do so I am
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was it corresponding and I was for several application it’s a it’s a
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compliment so they have extra nice behind actually haha its financing . mad
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and several magazines and websites
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these are three individuals that are in college
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oh not the nozzle in college and they are here for the summer so I’m just
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going to have some interesting quite you will ask interesting questions and the
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occasion and any feedback though they’ll get you the answers okay okay let’s do
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it what makes a great value investor what what are the criteria you would say
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a necessary or character what do you need to be a great value
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so I think one of the elements is patience
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secondly if you do have to understand that when we buy shares of stock
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we’re buying a piece of business
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so what is the business worth from my point of view i had an accounting
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background and a philosophy minor but then when I went into graduate school I
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had financed but in particular security analysis
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so I was trained in the gram and dodge methodology of valuing a security you
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gather the data that is you look at all the public information you then we as a
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firm put it together x raying it they would project that we interpret and then
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we communicate so we called the gaping Catholic approach gapi see approach to
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investing so we try to find companies now back about him about 7080 years ago
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you would try to find a company where you had a million shares outstanding
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excelling at ten dollars but they had cash or receivables of twelve dollars
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it was basically finding a company below in the public markets below the net
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current value of their assets that is very hard to do think the markets have
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been reasonably called over
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so you’ve been trying to find other businesses where you do this work
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the second thing that’s important other than patients is a accumulating
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knowledge of industries over an extended period of time
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so by following the auto industry as I’ve done for 40 years of 50 years and
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the farm equipment industry and the entertainment business you can adopt the
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change quicker and if the the stock market which we call mr. market comes
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down as it did on friday and today it’s because of brixon you can see what what
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companies make an interesting opportunity of a weak enough and then
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how much time do you have to hold
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so those are kind of the elements mhm and today if even if you find something
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below book well you mostly even if there’s a gap of twenty percent it’s
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hard to make that twenty percent and right it’sit’s liquidating the company
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or I waited out is a reason right well there’s other elements
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so what we call the private market value would a catalyst because we would like
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to harvest a narrow the spread between the public price of a security what you
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can buy a company at and what it would sell to a private equity and or a
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strategic that is a corporate buyer
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so in that framework we don’t necessarily look at book value we look
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