Samsung’s (XKRX:005935, Financial) shares held up fairly well during the quarter, in large part due to its balance sheet, but was a large detractor to results due to its position size. The economic challenges of the first quarter delayed a recovery in the memory market that we anticipated seeing in the second half of this year, though longer-term fundamentals remain strong. At the end of the quarter, nearly 45% of the company’s value was in excess cash and securities and the business was trading for 1–2 times normal enterprise value to EBITDA, which is astonishingly inexpensive.
From the AMG Yacktman Fund (Trades, Portfolio)'s first-quarter 2020 shareholder letter.
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