You are known as a value investor, yet your top personal holdings include Amazon.com and Bitcoin. How do they fit with your definition of value?
I don’t have my own definition. I take it right out of a Finance 101 textbook. The value of any investment is the present value of the future free cash flows. There’s nothing in there about a low P/E [price/earnings multiple] or a dividend yield.
Take a look at Amazon, my largest personal holding by a mile. In the very first annual report, Jeff [Bezos] talks about their objective being to grow the present value of the future free cash flow at the highest possible rate. Today, Amazon stock is about $85, below where it was at the market low on March 23, 2020. It was $170 a year ago. It’s going to be hard for Amazon not to double over the next three years given how much cash AWS [web services] and the advertising business are throwing off. It is one of cheapest stocks overall, despite the fact that it looks expensive today.””