That is to say, we buy the house, we rent it, and in a couple of years, with the rent that we have received, we pay for the house. We also find good companies, with a good balance sheet trading at 2/3X normalised earnings. This can happen out of panic, necessity, ignorance (passive management), something that seems difficult to understand for a rational investor. We are currently witnessing some examples of companies we have in our portfolio at Cobas. In a similar situation, you might wonder: but can the price of this company fall any further? As hard as it may seem, yes. Isn’t it true that opportunities like this don’t come along every day? Simplifying it a little, it’s like buying a house, and when the new owner enters the house for the first time, there’s a cheque in the entrance hall for them worth more than they paid for the house. When we enter a scenario like the current one, it is possible to find companies with more net cash than what they are worth in the market. In the end, we should think that we are buying small pieces of good businesses and always link the price (what you pay) in relation to its value (what you receive), which is based on their ability to generate profits in a sustainable way. Today, knowing how to be alone is very complicated. That is to say, to do the opposite of what others are doing, to go against the tide. The most difficult thing at that moment is to be contrarian. Everything is taken to extremes nobody is positive. In a scenario like the current one, where everything you read and hear is negative, things are often fuelled by the prediction of disaster scenarios. However, investing at those moments in the market, with a medium-term vision, is putting the odds clearly in your favour. It’s probably the biggest mistake we can make on an investment. Closing positions at times of utmost negativity in the market means consolidating losses at the worst time. In times of extreme negativity, asset prices drop so much that the risk of permanent loss is highly unlikely, which offers us very good investment opportunities with low risk and high profitability in the medium term. When the situation changes, events are negative and the opposite happens, risk tolerance disappears and therefore asset prices fall. This usually causes asset prices to rise, and risk tolerance is not usually limited at the height of the market. When events are positive, everything is usually interpreted in that way and negative events are often ignored. The market is like a pendulum, swinging from one end to the other. In your own interests, we recommend that you read them carefully. Your access to this website is subject to compliance with current Spanish legislation and the “legal notices / general terms and conditions of access to the website”.īy choosing to access our website, you acknowledge that you have read and agree to the terms and conditions. This information is subject to change and may be updated by Cobas AM without notice at any time. Past performance does not imply or guarantee future performance and the products included herein carry or may carry, among others, risks of fluctuations in interest rates, market prices, exchange rates, financial assets or indices.Ĭobas AM states that the information on the products contained in this website is provided for information purposes only and offers a general presentation of its products and services. Prior to the subscription or purchase of shares, a copy of the Key Investor Information Document (KIID) and the latest half-yearly report will be delivered and, upon request, the full prospectus and the latest annual and quarterly reports published and available at the CNMV, at Paseo de la Castellana, 53, and on the website In no case is registration with other supervisory authorities guaranteed. The Collective Investment Schemes listed here and managed or advised by Cobas AM are registered with the Comisión Nacional del Mercado de Valores, Spain’s securities market regulator. None of the information contained in this website constitutes an offer by Cobas AM to buy or sell financial instruments or to provide investment advice. This website is only intended to provide information about Cobas AM and its products authorised for marketing in Spain. You are about to access a website exclusively for people resident in Spain or who access the website from Spain. Its Tax Identification Number (CIF) is A87722377. 28046 and registered in the Madrid Companies Registry at Volume 35511, Folio 141, Section 8, Page M-638272. Cobas Asset Management is a Collective Investment Scheme management company licensed by the CNMV, Spain’s securities market regulator, under number 251, with registered office in Madrid, Paseo de la Castellana, 53, P.C.
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