Value Investing with Paul Sonkin

In this video Paul Sonkin talks about his area of investing. In this area of investing, it is an inefficient market. He is dealing with companies that are under one billion dollars in capitalization. There are companies that are modestly followed by Wall Street, some are barely followed followed by Wall Street, and there are companies that are known only by Paul Sonkin. This is a part of value investing, you really have to know what are you doing. There are some really companies in what you can invest in: Stein Why makes pianos, it is a macro cap company. Half of the business sells pianos, the other half is selling band instruments. Another example is Fortress International, another company. If you put up a server for Marie Data Center, they do the site selection, they are the general contractors, it is like a construction company for the internet.

All the companies in this category have very favorable macroeconomic cuts, so they can grow through recession. Fortress grow easily, it has thirteen million shares outstanding which gives a market value. These things are not known by much bigger companies or better known companies. Paul Sonkin says that with large cap companies there is pretty robust consensus that with a company like general Electric you could have twenty or thirty analysis that fall the company. Such a company gives you the opportunity to actually see into the future because the companies have now more visibility, they try to improve the disabilities, they work better, they are trying to come back, and this is a positive thing for the outlook.

Paul Sonkin Quotes from this video:

  • Better known companies does not necessarily means better investments
  • No one can say definitively that something is going to happen, there is no way to get an informational advantage.
Submitted by YouTube Trader on Sun, 04/04/2010 - 18:32

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