I had the pleasure of having a brief conversation with George Athanassakos, value investor and director of the Ben Graham Center for Value Investing, as he was overseas on business. We talked about his favorite companies, what he looks for in a company and his favorite books, as well as his disciplined appropach.
How and why did you get started investing? What is your background?
Right after university with an MBA in hand, I worked as a senior economist of a major trust company in Canada and my economic forecasts and discussions were used by the equity and fixed income managers, with whom I had several meetings and this incentivized me to start investing for myself. I started as a top-down economist but ended up later on as a bottom-up investor. It is rewarding to see that companies in which you believe in to perform well and to be recognized eventually by the markets. I am now a professor of finance and hold the Ben Graham chair in value investing and an avid believer in value investing, which I actively practice.
Describe your investing strategy
Bottom-up, value investing style.
What drew you to that specific strategy?
My personality/temperament and friendship with Mr. Prem Watsa (Trades, Portfolio)
What books or other investors influenced, inspired or mentored you? What investors do you follow today?
"Intelligent Investor" by Ben Graham; Prem Watsa (Trades, Portfolio), Warren Buffett (Trades, Portfolio) and many others.
How has your investing changed over the years?
Not much, but I now blend more seriously Ben Graham's and Warren Buffett (Trades, Portfolio) (quality investing)'s styles.
Name some of the things that you do or believe that other investors do not.
I believe in all things value investors believe in, i.e., patience, discipline, contrarian. However, may be also as a result of my economics background. I also keep in the back of my mind the big picture, which means that many times I worry top-down even though I always invest bottom -up.
What are some of your favorite companies? Where do you get your investing ideas from?
Stella Jones (TSE:SJ, Financial), Saputo (TSX:SAP, Financial), Winpak (TSX:WPK, Financial), CCL (CCL, Financial), Johnson and Johnson (JNJ, Financial), Colgate Palmolive (CL, Financial) and many others. From students; reading industry reports, magazines as well via screens and understanding competitive advantage.
Do you use any stock screeners?
Yes
Name some of the traits that a company must have for you to invest in. What does a high quality company look like to you?
A company with high and stable returns on invested capital; high and sustainable barriers to entry. Also, good and conservative management, sound business model and low leverage.
What kind of checklist do you use when investing?
I try to understand why I buy and what I buy. And have a disciplined approach when to enter and when to exit. That is, I have a "when to buy" and "when to sell" check list. I also use an analytical approach to investing that prevents emotions coming in the way.
Before making an investment, what kind of research do you do? Do you talk to management?
I screen, I value and make a decision using a margin of safety requirement. Need to understand well the industry and the key players. Do not talk to management.
What kind of bargains are you finding in this market? Do you have any favorite sector?
Not many, no.
 How do you feel about the market today? Do you see it as overvalued? What concerns you the most?
Overvalued. I fear higher interest rates or the normalization of interest rates and what they will do to the markets
What are some books that you are reading now?
"The Road to Character" and "Mean Markets and Lizard Brains."
Any advice to a new investor?
Understand industries in depth and have patience and discipline. If you invest based on the consensus, you will never make money. Be a value investor.
Disclosure: No position in the stock mentioned.
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