Value Investing for Everyone: Join Todd Sullivan on Stocktwits Premium Rooms
Todd Sullivan (most of you know him on Stocktwits) has been investing for a long time. And he’s been investing under the teachings and schoolings of legends: Warren Buffett, Ben Graham, Seth Klarman, and others who fall into the same category. He does rigorous research, finds undervalued companies, and then gets ready to play the long game.
Now, you can join him in his Premium Stocktwits Room to get exclusive content, stock picks, investing strategies, and walled content to discuss what he’s seeing in markets and how he’s putting money to work. If you want to learn more about Todd Sullivan, his background, and what he does, keep reading this special Q&A with him.
How long have you been value investing and what are your core beliefs about markets?
“I’ve been a true value investor since around 1995. As someone who has owned businesses my entire life, this is how I look at buying stocks. I am purchasing a part of a business, not a piece of paper to sell later that day. Looking at it that way helps me ignore short term price movements and focus on what matters over time, the company’s fundamentals. I also believe volatility is not “risk” it is “opportunity”. When markets freak out and dive good companies will see their share prices fall. If you own them this is the time to add to them, at advantageous prices. Patience wins…”
Why should more people take a long-term approach to markets?
“In the long term, the market always “gets it right”. However, in the short term, the market will swing wildly for countless reasons and its reaction to the news of the day cannot be predicted. Few investors are prepared are able to profitably capture those swings. Overtime, gut reactions to inputs are muted and stock valuations reflect a company’s underlying fundamentals.”
What will new subscribers get when they join your Room?
“I will be in there daily during the week to talk about value investing. We can talk about macro events and how they may affect stock valuations and even drill down into specific investments. I’m hopeful members share ideas for the rest of us to invest in and it becomes a nice idea-generating environment. It will also be a place to respectfully vet ideas and have a debate with other members regarding specific investments.”
Who are your favorite investors and what do you use from their wisdom in your strategy?
“Clearly as a value investor on has to like Buffett. I think his greatest strength in wading into pure fear. Take 2008–09 for example. He was investing billions in banks when people were running around screaming that they were all going under. They proved to be fantastic investments
I also like Ackman. He runs a concentrated portfolio and does exhaustive research into the companies he invests in. He also takes a several year time frame in his investments and is not tied to one industry.
Others are Muray Stahl at Horizon & Berkowitz at Fairholme.
Great reads are “Common Stocks and Uncommon Profits” by Phil Fisher, “Intelligent Investor” by Ben Graham and “Margin of Safety” by Seth Klarman. Any value investor can learn a ton also by reading anything Buffett has ever written.
The key point to all of them is that they do not operate under the illusion they will be buying at the bottom of any investment they make. They have no problem buying more of an investment if it falls in price as long as its fundamentals remain positive to their thesis.”
