Gary Mishuris – Qualitative Judgment Is More Valuable Than Your Financial Model

BIO: Gary Mishuris is the Managing Partner and Chief Investment Officer of Silver Ring Value Partners, an investment firm with a concentrated long-term intrinsic value strategy. STORY: Gary was developing a financial model that he used to recommend stocks for his company. He got so engrossed in the model that he forgot about other important aspects of investing, like the effects of a merger that had just happened in the company. He made mistakes, and the stock he recommended fell by 80%, losing money for his company. LEARNING: Think about the qualitative aspects. Don’t depend on management for decision-making and make things as simple as possible, but not simpler.   “Have a checklist of behavioral biases and steps that you will need to take to try to minimize them.” Gary Mishuris   Guest profilehttps://www.linkedin.com/in/gary-mishuris-cfa-7567902/ (Gary Mishuris) is the Managing Partner and Chief Investment Officer ofhttps://silverringvaluepartners.com/ ( Silver Ring Value Partners), an investment firm with a concentrated long-term intrinsic value strategy. Prior to founding the firm in 2016, Mr. Mishuris was a Managing Director at Manulife Asset Management since 2011, where he was the Lead Portfolio Manager of the US Focused Value strategy. Gary received an S.B. in Computer Science and an S.B. in Economics from the Massachusetts Institute of Technology (MIT) and teaches the value investment seminar at a local university. Worst investment everIn 2005, Gary was a senior analyst at a company before starting his firm. He was building the world’s biggest model ever. It had dozens and dozens of lines and a complex discounted cash flow analysis. The charismatic CEOGary met with the CEO and listened to his story in the management pitch, and it sounded terrific. The pitch was about having a merger to cut costs. The CEO promised that the merger would come with good tidings for everyone. While the CEO’s pitch sounded great, Gary had a few doubts about how two different businesses would work with two d