Tuesday, May 10, 2016

Tim Price:
Small Is Beautiful, 
Unpopular Helps
In his latest missive, Tim Price highlights the potential for investing in small, relatively unknown companies .. "Smaller is better in asset management, because it opens up many more opportunities that are unavailable to investors that grow too large – like Berkshire Hathaway  .. You need a market that has been out of favour for years. Next you need a market that has been largely shunned by both domestic investors and foreigners. Then you need attractive bottom-up valuations partly reflecting that mixture of retail and institutional revulsion. It helps to have a government determined to promote corporate governance and improve returns to shareholders. It also helps to have 'a massive disconnect between corporate reality profits growth and market valuation and sentiment'" .. in this writeup, Price points out there are many opportunities in Japan which fulfill these criteria.

No comments: