Course 509: Great Investors: Marty Whitman
In this course
1 Introduction
2 Cheap as Measured by Takeover Value
3 Patience

It can take a long time to unlock the value of a beaten-up stock. For example, Japanese insurance conglomerate Tokio Marine and Fire Insurance TKIOY was Third Avenue Value's largest holding at one point. Whitman thought Tokio was a high quality business that was selling for much less than its actual worth. The insurer had experienced its share of troubles, but Whitman was willing to wait out the storm for a return down the road. The return eventually came, taking what may have seemed an eternity to others. As long as a company is safe and cheap, Whitman is willing to wait. And as Third Avenue Value’s long-term numbers attest, the wait is generally worth it.

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