Mason Hawkins Graphs on Intelligent Investing

Mason Hawkins Graphs

Takeaways:

1. There are two primary approaches to generating outstanding returns: 1) buy a stock that is selling for less than intrinsic value and 2) buy a stock that is growing intrinsic value at a high rate.  Combining the two, as the hypothetical examples in the graphs show, can lead to significantly outsized returns.
2. The second graph shows the power of making intelligent repurchases of shares. This means purchasing shares when they are selling for less than intrinsic value. A close examination of a CEO’s track record for repurchasing shares can tell you a lot about his ability to allocate capital. Look to see whether shares are purchased when shares are over or undervalued.