Concentration Construction Valuation 
Musings on Markets
AUGUST 19, 2024
In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. Advice on concentrating your portfolio and having a margin of safety, both value investing nostrums, may work with the former but not with the latter.
Barry Ritholtz
FEBRUARY 7, 2024
To find out more, I speak with Jeremy Schwartz, Global Chief Investment Officer of WisdomTree, leading the firm’s investment strategy team in the construction of equity Indexes, quantitative active strategies and multi-asset Model Portfolios. Dividends come from earnings, and so those are sort of anchors to valuation.
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Musings on Markets
SEPTEMBER 9, 2024
In parallel, I also noted that investors have to change the way they value and price companies, to reflect where they are in the life cycle, and how different investment philosophies lead you to concentrated picks in different phases of the life cycle.
Barry Ritholtz
AUGUST 20, 2024
And so in the 1990s, I developed the, the late 1980s, early 1990s, I developed a skillset around valuation, in particular discounted cash flow or residual income type models, along with a couple of peers out of the consulting industry. It’s, it’s double concentrated risk. That’s really bad.
Barry Ritholtz
DECEMBER 19, 2023
And when they look at a sector, they want to be long, the very best stocks at the best valuations they can, and short the worst stocks at the worst valuations. It was there that we learned a unique and differentiated approach to portfolio construction and invest in where the output was an on uncorrelated alpha return stream.
Barry Ritholtz
OCTOBER 24, 2022
And how do we think about them from a valuation perspective? And actually, that sweet, that collection of strategies, which is in the Morningstar alternatives fund is where a lot of our portfolio managers were turning to at the end of last year when, you know, fixed income is so poor on a prospective basis, equity, valuations are really high.
Barry Ritholtz
AUGUST 15, 2023
It’s much more about security selection and a relatively static portfolio construction. What’s the valuation? So that comes out in position sizing and conviction and just making sure that you’re thinking about all the things that could go wrong if you’re taking a more concentrated position in something.
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