market folly

Continuing our notes from the London Value Investor Conference 2013, the next speaker is Richard Oldfield of Oldfield Partners.  He presented two long ideas: Nokia (NOK) and Hitachi.

Oldfield made some interesting comments about asset allocation. He said that his many years of  experience have taught him that wholesale, large moves in a portfolio are usually disastrous. He  recommended moving slowly. Investors are better to take marginal, incremental step as there is less  chance of being wrong for emotional reasons.


Idea: Long Nokia  

Oldfield said that Nokia was a great value but that they had got the entry price wrong. He noted the  value in Navteq mapping, the half stake in NSM and intellectual property and patents. He said that  the Lumia phones are very good and that capitulation for the stock is close at hand. 


Idea: Long Hitachi  

There has been a real change in style of Hitachi’s management. In particular it has become much  more target orientated. It has become globally aware for the first time. It has a successful nuclear  power venture. He noted that if Hitachi can be turned around then anything in Japan can. He said  that there are many Japanese sleeping monsters with great potential.  Last week we highlighted how investors are the Sohn Conference were bullish on Japanese stocks.


Be sure to check out other investor presentations: notes from the 2013 London Value Investor Conference.