2022 Undervalued Stocks bought by Top Investors (Part 3)
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For our past 2 articles, we have been exploring various top value investors’ investing styles that helped them to purchase outstanding companies which generated exceptional market beating results and also their latest stock purchases in 2022.
Click on the links below to read more:
According to Benjamin Graham, the godfather of Value Investing Methodology, Value Investing is an investing strategy that investors have an ownership interest in an actual business and want to buy a good business at a cheap price.

- If the share price is above the intrinsic value (shown in red dotted line), the share price is considered to be expensive or over-value.
- If the share price is below the intrinsic value, the share price is considered to be cheap or under-value.
- How their investing strategies help them to identify undervalue stocks
- Top holding stocks in their portfolio
- Latest stock purchases or stock picks in 2022
Let’s get on with our investigation!
SETH KLARMAN
Seth Klarman is an American billionaire value investor and the author of the famous investment book, “Margin of Safety” which sold only a limited of 5,000 copies since publication.

One of his main investing strategies that helped him to generate such consistent high returns is by applying Margin of Safety which helped him to buy undervalued stocks or assets. Margin of Safety is a concept where investors purchase a stock that is below the intrinsic value to provide a buffer of error and also to minimize big losses or permanent capital loss.

His latest portfolio is made up of seven sectors, with Communication Services (40.53%) takes up the largest portion, followed by Technology sector (33.06%).

Currently, Klarman’s largest stock holding in his portfolio is Liberty Global PLC (NASDAQ: LBTYK), a multinational telecom company with headquarters in London, Amsterdam and Denver.
LATEST STOCK PURCHASE IN 2022
In Q3 2022, Klarman has purchased approximately 250,000 shares of Lithia Motors Inc (NYSE: LAD) at an average price of $261.28.

LAD is the largest US Auto dealership that sells new and used vehicles. It offers 41 brands of cars at 282 locations in 26 US states and 14 locations in Canada as of 2022. The company also provides auto repair & maintenance services, financing & insurance sales. These services are provided under 4 brands.
HOWARD MARKS
Howard Marks is another famous American billionaire top value investor, co-founder & co-chairman of Oaktree Capital Management. He is an author of 3 books and frequently writes memos on value investing philosophy where Buffett enjoys reading his memos!

From his memos, we learned that he like to apply Deep Value Investing methodology, where he purchases bad businesses that are completely ignored by the investment community. The reason he invested in these types of companies is because he understands that there is a price mismatch due to greed and pessimism during a market cycle. To avoid losses when investing in such companies, he focuses on risk management via asset diversification and applying margin of safety.
As such, he was able to generate post-fees annual return of 19% compared to S&P 500’s 10.4%. His portfolio is widely diversified in various S&P 500 sectors, with Energy sector making up almost 36% of his portfolio. His current largest holding stock is TORM PLC (NASDAQ: TRMD), which is a UK-based shipping company that transports refined oil products.

LATEST STOCK PURCHASE IN 2022

PAGS offers various financial services and digital payment platforms to customers, solo entrepreneurs, small & medium enterprises under 2 brands – PagSeguro & PagBank.

LI LU
Li Lu is a Chinese-born American value investor, businessman and philanthropist. He is the founder and chairman of Himalaya Capital Management hedge fund company that focusses on Asian public companies. He wrote 2 books, one is in English, and another is in Chinese, as shown in the graphic below.

Due to his exceptional investing acumen, he is one of the super-value investors who had achieved a compounded annual return of 30% since 1998. This had led to Munger described him as “Chinese Warren Buffett”.
For him to generate such exemplary returns from the stock market, he has an investing mantra – “Accurate & complete information”. This means that he will gather as much information as possible about the company, to fully understand the company’s business model before investing in the company. This strategy is known as Circle of Competence. He will also identify if the company is being led by a great management team that has competitive advantage and great growth potential.

Hi current portfolio in 2022 is made up of 3 sectors – Financial Services, Technology and Communication Services. His largest holding stock is a US semiconductor company, Micron Technology, Inc (NASDAQ: MU), takes up approximately 33% of his portfolio.

LATEST STOCK PURCHASE IN 2022
In Q2 2022, Li Lu bought 948,000 shares of Alphabet Inc (NASDAQ: GOOGL) at an average price of $118.50.

- GOOGL (A class shares) - 1 voting right
- GOOG (C class shares) - no voting right
GOOGL is an American multinational technology holding company where it is the parent company of Google. It also invested in various technological ventures and owns a number of other technological subsidiaries besides Google.

MERYL WITMER

She also served on the Berkshire Hathaway’s board since 2013 and general partner at Eagle Capital Partners.
Due to her stellar performance in stock picking, her investment return (60.90%) in 2013 has beat her other Roundtable counterparts and also S&P 500 index (28.20%).

However, her portfolio was last updated and disclosed in 2013 where her largest holding stock is Berkshire Hathaway, B shares (NYSE: BRK.B). Her portfolio in 2013 was made up of 6 sectors, with the largest sector in Financial Services (24.2%).

LATEST STOCK PICK IN 2022
Even though Witmer no longer disclose her portfolio (and we are unable to keep track of what she is buying in her portfolio), as she is still active as a Barron’s Roundtable member, she provides her stock picks annually.
In Jan 2022, she has suggested Dollar Tree (NASDAQ: DLTR) as one of her five stock pick suggestions. The stock has been performing well into half year of 2022 where it had generated a total return of 10.6% in Jun 2022.


JIM ROGERS
Jim Rogers is an American investor and financial commentator based in Singapore. He is also the creator of Rogers International Commodities Index (RICI) where the index tracks 38 commodity futures in Agriculture, Energy and Metals.

Rogers has written 6-8 books on investing, with his latest released in 2013, titled “Street Smarts: Adventures on the Road and in the Market”.
He is famous for buying assets when he saw there was serious panic or depression in the market, which is the time to buy low. This is because when there is depression, majority people will be afraid of losing money. Thus, there will be panic selling in the market and push the prices of the assets lower.

This is when he will come into the market to look for bargain sale and invest in something that is struggling or ignored by the market. However, when the panic selling has subsided and the market is recovering, the asset prices may rise again due to optimism. That will be the time he sells away the assets at a higher price.
To accurately determine if the assets is a good investment, an in-depth understanding and knowledge of the assets (Circle of Competence) is a must, for one to have the steel of nerve to execute such trade in a contrarian manner.

Rogers has managed to generate a return of 4,200% over 10 years, from 2009 to 2019 at Quantum Fund where he co-founded with George Soros.
LATEST INVESTMENT SUGGESTIONS IN 2022
Currently, he is retired from the hedge fund company and thus there was no latest update on his portfolio. Nonetheless, he often appears in news channels to give his thoughts on the latest market trends. One of the assets that he suggested to invest during periods of high inflation is in commodities.

We have searched online for some of the commodity stocks that is available for investing and presented on our YouTube Channel. Click on the link to find out more!
CONCLUSION
As a round up for our 3 series of deep diving into famous value investors’ portfolio and investing strategies, we can conclude that these value investors will only invest in a good quality company or assets that they fully understand (Circle of Competence). This is because they want to invest long-term in the company for the compounding effect to grow their portfolio.
In addition, they will also perform stringent due diligence on the company’s financials and other aspects, such as the management team and economic moats before they invest. To further lower the risk of their investment, they will only buy when the share price is under-value by applying a Margin of Safety strategy.
Mohnish Pabrai was famous for copying Warren Buffett’s investing strategy and produced an impressive portfolio by applying what he learned. If he can copy and grow his portfolio, we can also follow what he did to invest and grow our own money!
You can learn the value investing strategies that these top investors use today to generate streams of passive income for a lifetime.
It’s time to transform your investing strategy into one like a real fund manager today here.
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- A deep dive into a fast-growth company case study.
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- How to determine the intrinsic value of a stock so you will know exactly when to enter or exit the market
- How ViA Atlas Intrinsic Value (IV) Directory can get you started on building your own portfolio of superhero stocks, even for busy professionals without much time to spare.
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Robert G Allen

Through the past 40 years, MILLIONS of people have attended his live seminars and his graduates have earned BILLIONS in profits by following his financial advice. Today there are literally thousands of millionaires and multi-millionaires worldwide who attribute their success to Mr. Allen’s systems and strategies. Empowered by his philosophy of the Enlightened Entrepreneur, his students have generously contributed over 50 million dollars to their favorite churches, causes and charities.
As a public speaker, he has spoken to audiences worldwide as large as 20,000 people, sharing stages with the likes of Sir Richard Branson, Tony Robbins, Robert Kiyosaki, Oprah Winfrey, Prime Minister Tony Blair and Donald Trump. In America, the National Speaker Association gave him an award as America's Top Millionaire Maker.
As a trainer and educator, he has spoken to groups all over the world from United States, Singapore, Mexico, Canada, South Africa, Russia, Kazakhstan, Latvia, Slovenia, Australia, Italy, England, Japan, Taiwan, Hong Kong and China. He teaches on the subjects of personal finance, wealth creation, multiple streams of income, entrepreneurship, authorship, sales, marketing and personal growth.
He is a popular media guest appearing on hundreds of radio and television programs including Good Morning America, Regis Philbin, Neil Cavuto and Larry King. He has been the subject in numerous international publications including the Wall Street Journal, The Los Angeles Times, The Washington Post, Newsweek, Barons, Redbook, Money Magazine and The Reader Digest to name just a few.
Ernee Ong

Ernee Ong is the co-founder of Proptiply, a property consulting and investment education company that builds on the concept of co-living to generate rental income. He aims to educate and empower aspiring property investors to attain their life goals through prudent and sound property investing principles.
Ernee is a loving husband to Jelene and a father to two wonderful daughters. Alongside Jelene, he is a co-founder and the driving force behind Proptiply™.
Proptiply™is a Property Education Company that empowers students with a focus on teaching them how to build cashflow by leveraging other people's resources and scaling up. Ernee has achieved remarkable success, moving from living in a 3-room HDB flat to owning a landed property and acquiring an additional one.
Ernee will be sharing insights into how individual Singaporeans or Permanent Residents (PRs) can scale up their property portfolio even with limited resources. His journey has been featured in prestigious media outlets like CNA, the South China Morning Post, and other news channels, showcasing how he managed to build an 8-figure business while overseeing 300+ properties in Singapore.
Vincent Chua

Vincent is a financial planner who specializes in investment and retirement planning. He helps people achieve their financial goals and dreams through comprehensive and customized solutions.
He has nearly a decade of experience in the financial services industry and is a Certified Financial Planner, CFP®. He is passionate about educating people on the importance and relevance of financial planning in today's world.
He grew up in Toa Payoh, a mature estate in Singapore, witnessing many senior citizens struggle with health and financial issues. They often told him that "it's better to be dead than to be sick in Singapore". This made him realize the value of money and motivated him to learn about investments at a young age. Later, he discovered the financial planning industry and decided to pursue it as a career.
He loves what he does because he makes a positive difference in people's lives. Whether it's helping them grow their wealth, protect their income, or plan for retirement, he enjoys seeing them achieve their desired outcomes and live their best lives.
Self-made Millionaire Investor
Liu Feng

Liu Feng graduated from Beijing University and came to Singapore in 1994, and went from having a mere S$100 in his wallet to becoming a millionaire. Armed with a strong determination, he made the majority of his fortune through Value Investing using principles created by Warren Buffett, one of the richest man in the world. Across the years, he has accumulated extensive experience and in-depth knowledge in stock investing.
Liu Feng specialized in stock investment. Since he first read a book about Warren Buffet in 1996, he has since done extensive studies on Value Investing Gurus – Benjamin Graham, Philip Fisher, Peter Lynch and John Neff. Through continuously fine-tuning his investment model, combined with his investment experience, he has founded a set of Investment Philosophies, Value Investing Principles and Methodologies to create passive income. Those who have been taught by him have found his teaching easy to understand as well as benefited from his many years of experience and insight on stock investments.
As an experienced value investor, Liu Feng incorporates real case studies of numerous Singapore-listed companies in his training, coupled with a systematic and proven methodology to provide a distinct advantage in the stock market.
Lauren C Templeton

Lauren C. Templeton is the founder and Chief Executive Officer of Templeton & Phillips Capital Management, LLC. Prior to founding the firm in 2001, Lauren was employed with Morgan Stanley, Homrich Berg, and New Providence Advisors, a hedge fund management company, based in Atlanta, GA.
“Author of “Investing the Templeton Way: the Market Beating Strategies of Value Investing's Legendary Bargain Hunter”, Lauren is also the great niece of Sir John M. Templeton and is a current member of the John M. Templeton Foundation, established in 1987 by renowned international investor, Sir John Templeton. She began investing as a child under the heavy influence of her father as well as her late great-uncle, Sir John Templeton.
About Sir John Templeton
Sir John Marks Templeton was born in 1912, in the small town of Winchester, Tennessee. He attended Yale University and graduated near the top of his class and as President of Phi Beta Kappa. He was named a Rhodes Scholar to Balliol College at Oxford, from which he graduated with a degree in law.
Templeton started his Wall Street career in 1938 and went on to create some of the world’s largest and most successful international investment funds. He was famous for picking companies that hit “points of maximum pessimism” (ie. Rock bottom prices). When war began in Europe in 1939, he borrowed money to buy 100 shares each in 104 companies selling at one dollar per share or less, including 34 companies that were in bankruptcy. Only four turned out to be worthless, and he turned large profits on the others.
Templeton established the Templeton Growth Fund in 1954. With dividends reinvested, each $10,000 invested in the Templeton Growth Fund Class A at its inception would have grown to $2 million by 1992. He eventually sold the family of Templeton Funds to the Franklin Group — scores of them with $13 billion in assets — in 1992, and turned to philanthropies that had engaged him for decades.
Investing the Templeton Way Podcast
Investing the Templeton Way with Lauren Templeton is a podcast that explores the world’s most intriguing investment topics from the overseas markets to mastering our own minds. Gather investment wisdom and educate yourself as you listen to interviews with exclusive managers, executives, and entrepreneurs on a wide range of engaging topics. Visit the Podcast Page.
Dr Todd A Finkle

Todd A. Finkle, Ph.D. is the Pigott Professor of Entrepreneurship at Gonzaga University. He has taught for 34 years at 4 different universities, publishing more than 270 articles, books, presentations, and grants.
Dr. Finkle is an expert on Warren Buffett and Entrepreneurship. His recent book titled," Warren Buffett: Investor and Entrepreneur," is published by Columbia University Press. The book traces the entrepreneurial paths that shaped Buffett’s career, from selling gum door-to-door during childhood to forming Berkshire Hathaway and developing it into a global conglomerate through the imaginative deployment of financial instruments and creative deal making.
Dr. Finkle's initial motivation for writing the book was to show the layperson how Buffett evaluates potential investments. Finkle also zeros in on Buffett’s longtime business partner Charlie Munger and his contributions to Berkshire Hathaway's success. Finkle draws key lessons from Buffett’s mistakes as well as his successes, using these failures to explore the ways behavioral biases can affect investors and how to overcome them.
Dr. Finkle is a pioneer and innovator in the field of entrepreneurship education. He has been an entrepreneur of six ventures and consulted with a wide variety of entities including countries and universities from all over the world. Dr. Finkle has been interviewed or appeared in a variety of media outlets including the Cleveland Plain Dealer, Entrepreneur Magazine, Forbes Magazine, Omaha World Herald, Wall Street Journal, The Washington Post, and several radio and television stations.
Cayden Chang

Cayden Chang is the Founder of Mind Kinesis Investments Pte Ltd and Value Investing Academy Pte Ltd, which runs the first and only Value Investing training that is recommended and endorsed by Mary Buffett, the internationally acclaimed author and speaker of how billionaire Warren Buffett invests. His company also runs Value Investing workshops across Asia. With over 50,000 graduates across 11 cities in Asia, his methodology is tested, proven and easily duplicable even for someone who has no prior experience in investing.
Cayden holds two Bachelors’ Degrees and a Masters Degree from National University of Singapore. He has also been trained in value investing by Professor Bruce Greenwald in Columbia University, the institution where Billionaire investor Warren Buffett met Professor Benjamin Graham, as well as by Professor George Athanassakos, the finance professor who holds the Ben Graham Chair in Value Investing at the Richard lvey School of Business, University of Western Ontario.
Cayden has also received the Lifelong Learners Award 2008 from the Minister of Manpower on 18 November 2008, Mr Gan Kim Yong and he was featured in “TODAY” newspaper, “938Live Online News”, “938Live Radio Station”, “Mediacorp Xin.Sg” and “The Straits Times”. He was subsequently featured in “938Live Breakfast Club” Radio, “Channel News Asia AM Live”, “Shareinvestment”, “The Edge”, and “The Exquisite” Magazine for sharing his secrets of financial success.
In July 2010, he was diagnosed with Renal Cancer. Despite being ill, he launched his first charity project in August 2010, where he donated all of the sales proceeds of his book to The Straits Times School Pocket Money Fund, and was featured on 938 Live Radio Station and The Straits Times. His fight with Renal Cancer was subsequently published in The Straits Times and interviewed on 938Live Radio Station. His life story was featured in The Sunday Times on 10 June 2012. He survived terminal stage Renal Cancer (Stage 4) in September 2014 and launched his second book titled “The Book of Hope” to raise funds for cancer research.
