Porterhouse steak trading at hamburger prices

In our recent paper “High-Quality Midcap Value – The Case for Common Sense”, Kailash documented that many of the markets most profitable firms were trading at a discount to the market average valuations.

Figure 13 below shows:

  • The number of firms that are in Cheap High-Quality has only been larger at the peak of the internet mania [7]
  • There has only been one prior instance since 1963 where one could find so much “Porterhouse steak trading at hamburger prices”

Per the paper, Kailash believes that despite elevated valuations for buyers of index funds, this may be a generational opportunity to buy high quality firms at low prices for stock-pickers.

Want more content? Subscribe now!

Sources
Disclaimer

The information, data, analyses and opinions presented herein (a) do not constitute investment advice, (b) are provided solely for informational purposes and therefore are not, individually or collectively, an offer to buy or sell a security, (c) are not warranted to be correct, complete or accurate, and (d) are subject to change without notice. Kailash Capital, LLC and its affiliates (collectively, “Kailash Capital”) shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information herein may not be reproduced or retransmitted in any manner without the prior written consent of Kailash Capital. 

Kailash Capital, in preparing the information, data, analyses and opinions presented herein, has obtained data, statistics and information from sources it believes to be reliable. Kailash Capital, however, does not perform an audit or seeks independent verification of any of the data, statistics, and information it receives. 

Kailash Capital and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.