Value II: is Investing Not As Hard As We Think?
Steve Clapham, former hedge fund manager and founder of Behind the Balance Sheet, is joined by Mark Walker, managing partner of Tollymore Investment Partners, to analyze how investors can find value in a time when price discovery is more difficult than ever. Walker notes how many investors have inherited too many bad habits from the sell-side, such as excessively looking at screens, over-reliance on complex financial models, and relying on broad knowledge as opposed to deep understanding. Walker then points out how investors can avoid falling into these behavioral traps and, in this way, discover and realize more value in their investing process. Lastly, Walker and Clapham use this framework to analyze one of Tollymore’s holdings, Gym Group PLC. Filmed on October 27, 2020. Key learnings: Focus on attaining deep understanding rather than acquiring broad knowledge. Turn off your screen and learn how a business works from the inside out. Only then make capital allocation decisions.