Edgar wachenheim iii biography of martin

The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information. Ed Wachenheim III. Formal First Name. He is best known as the Chairman and Chief Portfolio Manager of Greenhaven Associates, a privately owned investment management firm he founded in Under his leadership, Greenhaven Associates has delivered consistent long-term returns, focusing on undervalued equities with significant growth potential.

He began his career at Goldman Sachs, where he honed his skills as an analyst before moving on to become a senior investment officer at Central National-Gottesman, a private investment firm. His deep understanding of market dynamics and rigorous analytical approach have been the bedrock of his success in the investment world. He has been involved in various charitable endeavors in Rye and the broader Westchester County area, contributing to causes related to education, healthcare, and community development.

Wachenheim and his wife Sue have strong ties to Rye, New York, where he has been a long-time resident. His connection to the community is reflected not only in his personal life but also in his philanthropic activities. In other projects. Wikidata item. American businessman. New York City. Sue Wachenheim. Early life and career [ edit ]. Common Stocks and Common Sense [ edit ].

Non-profit work and philanthropy [ edit ]. Personal life [ edit ]. References [ edit ]. Whale Wisdom. Retrieved 22 May Let me give you an example. The market is clearly above trend line today. I was looking at the stock of a company I knew earlier this week. The first thing I did was look at the balance sheet, and it had become more adverse. The company has made two acquisitions since we bought the stock; it has more debt and a lot of goodwill.

Can you share your thoughts on those? Value stocks have been out of favor, and our stocks are really out of favor. Citigroup is so simple. This is what we do. We look out two years. We judge the quality of the company, the cash flow, and everything else others judge, and we put a PE ratio on that, which becomes our goal. We scrubbed them, and we came out with the same logical conclusions they did.

Half of that gain comes from share repurchases. Citigroup and JPMorgan dominate globally in that. It has to do with some complicated transactions related to trade. I would put a 15 or 16 multiple on that. Wachenheim : Not quite as exciting in Goldman Sachs. To me, that business is worth 20x earnings. I mean, Goldman hires among the best and the brightest in the nation year after year, and some of those stay and reach the top.

I used to work at Goldman Sachs. This close after the financial crisis, I worry less about Goldman Sachs doing things I would not approve of in terms of risk-taking. Madaan : There is or appears to be a short-term misunderstanding or pessimism about issues facing some of these businesses. In your book, you talk about your friend, whom you call Danny Dinner Date, who would want to wait for the first sign of things turning around.

Could you share some of those thoughts? Wachenheim : Danny Dinner Date, whom I actually had breakfast with, is a really smart and intelligent man, and smart and intelligent are two different things.

Edgar wachenheim iii biography of martin

He makes mistake after mistake, and I talk to him about them because I want him to learn. This is why I think so much of investing is behavioral to begin with, but hardwired secondarily. Madaan : You talk about that behavioral aspect in the book. You say sometimes it takes a number of years for the prices of undervalued shares to increase to their intrinsic value or be brought by positive events.

How important is patience during that time, and in the interim, how do we distinguish being patient from being incorrect?