/MiB: Chris Davis, Davis Selected Advisors

MiB: Chris Davis, Davis Selected Advisors


This week, we speak with Chris Davis, Chairman and CEO of Davis Selected Advisors, which has over $25 billion under management. Davis also sits on the Board of Directors of Coca Cola, and is Vice Chairman of the American Museum of Natural History.

We discuss the firm’s early days, when it was running separately managed accounts (SMAs) in 1969, and moved into mutual funds after being asked to by several clients. Four decades later, similar requests from client led them into ETFs. The firm’s main strategies included Concentrated US, International, Global, and Financials funds.

Davis notes that most value investors are too narrow in how they consider the issue of price and value. He uses Google as an example. When they first began using the search company for client acquisitions, it cost GEICO about $2 per new lead via Google. The next nearest customer acquisition vehicle was late-night cable television, at a cost of $30 per client. That enormous differential explained why Google was poised to take so much market share in advertising from everyone else. It also suggest that it was less expensive on a valuation basis than the traditional P/E ratio implied.

His favorite books can be seen here; A transcript of our conversation will be available here.

You can stream/download the full conversation, including the podcast extras on Apple iTunes, Overcast, Spotify, Google, Bloomberg, and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.

Next week, we geek out on cars with Hannah Elliot, reviewer of supercars for Bloomberg.

 

 

 

 

Chris Davis’ favorite books

 

 

 

 

 

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