What the Moneyball story teaches us about investment
Author: Caitlin Fitzsimmons
Publication: The Australian Financial Review, The Sydney Morning Herald
Caitlin Fitzsimmons attended an investment briefing last week: "Winning fundamental Moneyball: making money from market anomalies". The briefing was presented by PM Capital's Chief Investment Officer Paul Moore and Portfolio Manager Jarod Dawson.
Paul Moore on the application of Moneyball principles to investing:
"The A's had a limited budget so they had to buy the mispriced players, the anomalies... When it comes to investing, the way you make money is to buy the mispriced businesses, the anomalies."
"When it comes to investing people think safety is owning all the bluechip stocks, the popular stocks, but they're the ones that aren't mispriced,"
""It takes "intuition, judgment and insight" to spot when things are moving in a different direction. For example, he invested in European beer brand Heineken in the early 2000s because its price-to-earnings ratio was half that of US-based Budweiser, and Moore believed the beer market was set to globalise."