Tony Coniaris is a Partner, Co-Chairman, Portfolio Manager and U.S. Investment Analyst at Harris Associates. He is currently a co-manager of the Oakmark Select Fund (MUTF:OAKLX), the Oakmark Global Fund (MUTF:OAKGX) and the Oakmark Global Select Fund (MUTF:OAKWX). Mr. Coniaris joined the firm in 1999, previously serving as both an Associate Analyst and Research Associate at Harris. In his 2,970 word interview in the Wall Street Transcript, Mr. Coniaris shares his top picks for the current market.
“We have a unique, bottom-up investment process, which means we build portfolios without regard to how the indexes are weighted. We have relatively concentrated portfolios, where the most diversified ones have roughly 50 companies. We go all the way down to 20 names or less in some of our portfolios, meaning they are more concentrated and, therefore, have higher conviction…Our investment process among value investors is somewhat unique. When I say we look for businesses trading at significant discounts to our estimate of intrinsic value, I would really underline the word intrinsic…”
This detailed analysis gives some interesting investment decisions for Tony Coniaris:
“You really have to peel back the onion to see the value in Google. When you do that, we believe you’re paying a midteens multiple on the core search business. If you take that $1,250 share price, back out $140 per share of net cash and back out the losses that they’re making on what they call “other bets,” such as their Waymo autonomous driving efforts, you’re paying roughly 16 times earnings for the core search business…One also has to think harder about what YouTube may be worth. We don’t believe Google has monetized YouTube to its full potential yet. If you take the hours viewed on YouTube and value them similarly to how public cable networks are valued, you get a value for YouTube in excess of $430 a share. ”
Get all the top picks from Tony Coniaris at Oakmark Select by reading the complete 2,970 word interview in the Wall Street Transcript.
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