1/15/2018 0 Comments Tying Up Loose EndsThis week was particularly eventful, both in my search to find a mentor and making progress on my original work. Starting with my search for a mentor, this week brought me a new opportunity to learn and grow under the guidance of someone who does the same type of work as me. After going to another interview with Mr. Greg Kitt of Pinnacle Investments, he introduced me to Mr. Richard Rogers and Mr. Patrick Ooteghem of Venable Royalty, LTD, a oil and gas royalty company in Dallas. From Mr. Kitt’s introduction, the team at Venable Royalty was willing to consider me for one of their (typically) college internship positions. Through my interview with them, I was able to get some more information about the kind of investing they did, which happened to be nearly exactly what my style is. This alone was very exciting, as 95% of investors right now do not use purely fundamental analysis with a 5-10 year time horizon which allows for a discount cash flow model to be used. Hopefully I will be able to secure this internship position and learn even more under the guidance of Mr. Rogers and Mr. Ooteghem.
In regards to my original work, this week was filled with progress. I was able to completely finish my spreadsheet valuation of Installed Building Products, and all I have left to finish is a holistic analysis of the company, where I will take into consideration all of the non-numerical aspects of IBP. One of the things that surprised me the most about IBP was the difference between my calculated value per share and what the market was currently trading at. While I came up with a value of $25.09, the market was trading at $77, about 306% more than my calculated value. This just goes to show that even in the current market where everything seems correctly priced, large price discrepancies can exist and there are still opportunities for value investors. Overall, this has been one of my most productive and interesting weeks in ISM so far, and I hope that I will have more weeks that are packed with learning and discovery.
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