How Harris Oakmark thinks about and defines value investing Mid-cycle earnings and why they are important (using the coin flip analogy) CBRE example of mid-cycle earnings Banks and SCHW example of mid-cycle earnings Additional common adjustments they make to get to true normalized economic earnings power Estimating normalized earnings for software and faster-growing tech companies (and Salesforce example) Amazon and Alphabet examples Even more adjustments for SBC, amortization, and non-recurring items Lithia Motors example First Citizens example Quick discussion on modeling share repurchases and benchmarking capital allocation decisions on buying back stock at a discount How Harris Associates determines the appropriate P/E ratio for different businesses Masco example and choosing an appropriate peer comp group Thoughts around P/E multiple expansion American Express example for choosing a fair P/E multiple Dealing with stocks with a wider range of outcomes How they pick a required rate of return Idea generation and research process at Harris Oakmark What Harris looks for in hiring an analyst Humility and willingness to accept constructive feedback The primary responsibilities of the Director of Research at Harris Associates Unique cultural attributes of working at Harris Associates ***************************************************** ⁠⁠Public.com⁠⁠ just launched options trading, and they’re doing something no other brokerage has done before: sharing 50% of their options revenue directly with you. That means instead of paying to place options trades, you get something back on every single trade.  -Earn $0.18 rebate per contract traded  -No commission fees  -No per-contract fees  By sharing 50% of their options revenue, Public has created a more transparent options trading experience. You’ll know exactly how much they make from each trade because they literally give you half of it. Activate options trading at⁠ ⁠⁠⁠https://public.com/jro⁠⁠ by March 31 to lock in your lifetime rebate. Paid for by Public Investing. Must activate Options Account by March 31 for revenue share. Options not suitable for all investors and carry significant risk. Full rebate terms here (⁠⁠https://public.com/disclosures/rebate-terms⁠⁠). US members only. ***************************************************************** FinChat.io is The Complete Stock Research Platform for fundamental investors. With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use. Use our LINK and get 25% off any premium plan: http://finchat.io/jro *****************************************************************