Michael Price is a legendary investor and someone I try to learn from whenever I get the chance. I mean, this is one the guys that taught Seth Klarman how to invest capital. A few years ago, Michael Price gave a speech to Bruce Greenwald’s Value Investing course at Columbia Business School. While I do not have the transcript directly in front of me, his words can be summarized as follows: “Read proxies and bankruptcy disclosure statements because they tell you what rational buyers are paying for businesses.”
Now this is not theoretical data – i.e. this stock should trade at 6x or 9x – this is a real buyer, with real capital at risk, deploying that capital to buy a certain asset or company. And that information holds value and is very rarely discussed or even analyzed by the sell side.
For those that are interested on Bloomberg, you can make a macro to type in NSE “PREM14 A”, and assign that macro to a button and have all the proxies filed at the tip on your hand. For disclosure statements, the process gets a little trickier – you have to monitor the docket to determine when the disclosure statement actually gets filed.