Following Daniel Loeb's Betshttp://www.fool.com/investing/general/2013/09/09/following-daniel-loebs-bets.aspx Federico Zaldua
September 9, 2013
Daniel Loeb, founder of Third Point LLC, is one of the most successful activist investors of the last decade. I had the chance to assist in a class led by him during my years at Columbia Business School. He is just as you might imagine him to be: smart, cold and assertive. Here I want to take a look at three of his positions and answer one question: should you invest in these companies as well?
Betting on the bidding house
With an economy in full recovery (at least in developed markets) and a duopoly in place (Sotheby's shares the +$10 billion a year market with privately held Christie's) I think Loeb and his fund are, once again, betting on a winner. Sotheby's trades at 25 times earnings, but good things are very rarely cheap.
One Buffet stock pick by Loeb
Moreover, the stock's valuation does not seem very rich. Disney trades at 18 times 2013 earnings, while the company is growing its top line by 4.5% year-over-year (yoy). In a more in-depth analysis, Disney also looks fairly priced. Summing up all the parts that compose the company (ESPN, the recently acquired Lucas Fi