During his recent interview with Tobias, Jim Royal Ph D, the author of The Zen of Thrift Conversions: How To Turn Hidden Bank Stocks Into Big Gains, discussed Thrift Conversions Are Classic Value Investing. Here’s an excerpt from the interview:
Q4 2020 hedge fund letters, conferences and more
Tobias: That’s two of my favorite things, undervalued stocks with an activist involved. I think that that’s a really good way to get some pretty reasonably safe good returns in the market.
Jim: Yeah, exactly. You’ve got an activist who’s getting stock repurchase., and you’re buying below tangible book, and on and on and on. There’s just multiple, multiple ways to win here, I think. In a lot of ways, I think it’s classic value investing.
Thrift conversions are classic value investing, but I think perhaps, maybe unlike classic value investing, there’s a clear lifecycle in terms of you buy cheap, and then you get that sellout, that acquisition by a rival. There’s a clear endgame or a catalyst to that value that’s well understood. And yet, these things still pop up in the market. As I said, a couple months ago, I was buying a stock at 70% of tangible book value that was consistently profitable and had a ton of equity.
Tobias: Fantastic discussion. Absolutely fascinating.
You can find out more about Tobias’ podcast here – The Acquirers Podcast. You can also listen to the podcast on your favorite podcast platforms here:
- Apple Podcasts
- Breaker
- PodBean
- Overcast
- Youtube
- Pocket Casts
- RadioPublic
- Anchor
- Spotify
- Stitcher
- Google Podcasts
For more articles like this, check out our value investing news here.
Article by The Acquirer’s Multiple
