Daniel O'keefe on investment
From Daniel O'Keefe: Morningstar International Stock Fund Manager of the Year · · WEALTHTRACK
“We bought Google in 2008, and Google is a great example of what we do, because it gets to the heart of the distinction between something that is merely statistically cheap and something that is fundamentally undervalued. Google at around 12 times our estimate of earnings when we purchased it was not necessarily the cheapest company in the universe. But Google is a better value over a long period of time at 12 times earnings than an average or mediocre company at nine times earnings even though it's a higher multiple.”
On , Daniel O'keefe, MD and Lead Portfolio Manager of Global Value & Select Equity Strategies at ARTISAN PARTNERS ASSET MGMT, spoke about investment during Daniel O'Keefe: Morningstar International Stock Fund Manager of the Year on WEALTHTRACK.
About Daniel O'keefe
In a 2014 interview, Daniel O'Keefe discussed his value investing approach, describing it as seeking businesses that are cheap relative to long-term intrinsic value, have a competitive advantage, a strong balance sheet, and a management team aligned with shareholders. He noted that after significant market gains in 2013, many bargains had been "wrung out of the market," but he found emerging markets attractive due to their low price-to-earnings multiples relative to developed markets. O'Keefe also highlighted specific holdings, including financial stocks such as American Express, BNY Mellon, ING Bank, Lloyds Bank, and Royal Bank of Scotland, which he said were added during or after the financial crisis. O'Keefe used Google as an example of distinguishing between statistical cheapness and fundamental undervaluation, noting that the firm bought it at 12 times earnings in 2008. He criticized Google's corporate governance and capital allocation decisions, such as the Motorola acquisition and the purchase of Nest, while acknowledging the strategic rationale behind investments like Android. He also discussed the risks in banks, stating that low price-to-earnings multiples do not necessarily indicate true value due to high leverage and potential credit risks.