AI Summary
5 min readJonathan Boyar, principal at Boyar Value Group, joins hosts Josh Brown and Michael Batnick to discuss cheap stocks with near-term catalysts. Boyar focuses on undervalued companies through a private equity lens—assessing full enterprise value (market cap plus net debt minus cash)—targeting 2-4 year horizons where acquirers would pay up, but markets undervalue due to short-term noise.
Value Approach and Process
Boyar buys slowly during declines to avoid catching bottoms, starting small and adding on momentum, as premature accumulation feels lonely but is the price of equity returns. Key: Extensive pre-buy research reports shared with hedge funds and mutual funds for feedback—95% of portfolio covered this way—detailing thesis, risks, and catalysts. If thesis breaks (e.g., story changes), reevaluate and exit; don't rely primarily on multiple expansion. Avoid value traps by requiring catalysts: earnings acceleration, sales, spinoffs, or activist pressure within 2-3 years. Family-controlled firms appeal for stability, but activists can nudge sales if owners tire.
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What you'll learn
- 1 (00:00) **Pre-Show Banter** - Casual talk on fast food chains and commutes
- 2 (05:01) **Guest Intro: Jonathan Boyar** - Background on Boyar Value Group, family ties to Chef Boyardee, and his podcast
- 3 (08:00) **Current Market Environment** - Value investor views on weird year, valuation focus over short-term noise
- 4 (09:36) **Value Investing Challenges** - Buying falling stocks viewed through private equity lens, avoiding premature accumulation
- 5 (12:06) **Mag 7 Multiple Compression** - NASDAQ streak without highs; charts show PEs dropping to attractive levels (e.g., NVDA <20x)
- 6 (14:57) **Reasons for Mag 7 Selling** - Momentum selling, pod shops de-risking, short horizons vs. long-term dominance
- 7 (20:04) **Market Setup and Sentiment** - Potential washout healthy; valuations now reasonable like Google last year
+ Full timestamped outline available in the app
Show Notes
On episode 235 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Jonathan Boyar to discuss: finding value in a volatile market, Mag 7 valuations, the only publicly traded basketball team, how Uber could win big on autonomous, and much more!
This episode is sponsored by WisdomTree and Janus Henderson Investors.
- Learn more about OPPJ and the broader suite of geopolitical opportunity ETFs at https://www.wisdomtree.com/geopolitical-opportunities
- Learn more about Janus Henderson Investors at https://www.janushenderson.com/
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Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.
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