GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Francis Chou Comments on Actavis Inc.

September 05, 2013 | About:
Another big winner was Actavis Inc. (ACT), formerly Watson Pharmaceutical. We first purchased Actavis in 2006 at $25. We kept buying the shares in 2007, and on June 30, 2013, it was priced at $126.22. It shows that when you are accurate in your estimation of intrinsic value and buy them at a significant discount, add in good management and respectable growth in intrinsic value, the investment works out really well. This is true even if you bought them when the market indices were trading at an all-time high. "Value traps" generally occur when you are wrong in your estimation of intrinsic value, pay too much and the company's intrinsic value is static and/or decreasing in value.

From Francis Chou's semi-annual report 2013.

About the author:

Holly LaFon
Dave Brickell is the co-founder and COO of stock market blog & research network, Stockopedia (www.stockopedia.co.uk). He previously worked as an Investment Director at Candover, Morgan Stanley and Credit Suisse First Boston. He has an MA in Law from Oxford and MBA with Distinction from INSEAD.

Visit Holly LaFon's Website


Rating: 2.7/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide