This is the first in a set of videos where Cale Smith explains value investing and his approach to investing. He runs his own investment company Islamorada Investment Management.
If you are interested in value investing this series of videos are a particularly good introduction. I very much like Cale's style. It is all long, no short and sees a lot of value in small caps. He manages two funds, which looking at his web-site have a management fee of 1.5% annually. This is low for a managed fund (I currently pay 1.0% for my pension that is little more than a blind tracker). Another interesting thing is at the moment the fund is tiny 15 million under management that gives Cale complete freedom. He can invest wherever he sees value without having to worry about the impact of his investment.
I particularly liked the last half of the last video in the set - here Cale goes through the various metrics ROE, ROC, P/E and gives insight into what they mean to him in terms of usefulness.
Here is the first part - you can find the rest on youtube.
Thanks for the link, Alan - and great blog! Love that Kovacevich bit, too.
ReplyDeleteYou'd think more guys in that position would have a similar disciplined approach, but I think the reality is that for every Dick K., there's about a hundred guys like Ken Lewis.
In any case, thanks again! Keep it up, eh?
- Cale
Thanks for the feedback Cale - very much hope that you post more videos ;-)
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