STREET DOGS

What to buy… If you don t have the free cash flow, you don t have anything. Number two is a business with a moat around it, where it‘s competitively insulated to some large degree.

A lot of companies Warren Buffett owns would not be considered value in the classical sense. A company can be growing at an extremely high rate, but be trading at a very reasonable multiple. Or that same company can be giving you your return through a fat dividend. What you want is a combination of financial statistics that yell, “Buy me.”

As a value investor, I‘m looking for more but for less. I‘m looking for more growth at a lower multiple. I‘m looking for more yield versus what I can get from the S&P. Or, I‘m looking for more asset value. About 95% of publicly traded companies have two values. One is the auction market value, which is the price you and I would pay for 100 shares of a company. The other is the private market value, which is the price a strategic or financial investor would pay for the entire business.

One of the approaches I take is to look for a stock in the public market that is selling at a significant discount to private market value where I can identify catalysts for a potential change — Leon Cooperman

SIMPLE TO GRASP

We like businesses that are simple to understand and simple to discuss. There are only two things that matter in investing. What are they going to earn, and what multiple are people going to put on that. Let’s not make our business any more complicated than this. We look for businesses that have a good medium and long-term growth outlook and are cheap relative to the cash flows that they are currently generating.

Larry Robbins