Tom Russo Global Value Equity Investing

2t` fggufa Zprbgd  vfauh bgvhstbgd jcgdrhss •

 Fprba :, ><6= • Afs Yhdfs, GY 

Dacnfa Yfauh Hqubty Bgvhstbgd ]ck ^ussc, Dfrmghr ^ussc & Dfrmghr 

]`ckfs F. ^ussc

 Yfauh Bgvhstbgd Bgvhstbgd Jcgdrhss Fprba :-=, ><6=

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‑Ibity-Jhgt Ibity-Jhgt Mcaafr Nbaas‛

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‑Jfpfjbty tc ^hbgvhst‛ ‑Dccmwbaa bs t`h Dbit ]`ft Ehhps cg Dbvbgd‛  Bgthrgftbcgfa, ]`h Kcst \rckbsbgd Yhguh

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‑Jfpfjbty tc Zuiihr‛ • •

Kfgfdhkhgt Kftthrs Ifkbay-Jcgtrcaahm Jckpfgbhs

Zhkphr Ybj \frtghrs, A.\. Kfocr ‑Dacnfa Yfauh‛ Yfauh‛ Hqubty @cambgds Kfrj` :6, ><6= Jckpfgy Nhres`brh @ft`fwfy Bgj. Ja F  Ghstah ZF-Zpcgs FM^ \`babp Kcrrbs Bgthrgftbcgfa Bgthrgftbcgfa Bgj. Kfsthrjfrm Kfsthrjfr m Bgj Ja F Thaas Ifrdc Jckpfdgbh Ibgfgjbhrh ^bj`hkcgt @hbghehg @cambgd GY ZFNKbaahr \AJ \hrgcm ^bjfrm Fg`hushr-Nusj` Fg`hushr-Nusj ` BgNhv FM^ Xgbahvhr GY FM^ Nrbtbs` Fkhrbjfg ]cnfjjc \AJ Nrcwg-Icrkfg Nrcwg-Icrkfg Jcrp Ja F Fatrbf Drcup Bgj. Mbfdhc \AJ Kfrtbg Kfrbhttf Kfthrbfas Jckjfst Jcrp Zphjbfa Ja F Zjrbpps Ghtwcres Bgthrfjtbvh Ja F Drf`fk @cambgds Jc. Nhrghr Drupphg  G@Z] Khmbf Drcup Drcup ]ctfa Hqubty

% ci Fsshts 66.6 6<.4 0.8 4.> 4.> 9.4 9.8 9.: 8.2 8.> =.2 :.> :.> :.6 >.4 >.= >.> 6.6 <.0 <.: <.6 22.:

‑Jfpfjbty tc Zuiihr‛ ]fnah ci Fggufa @bstcrbj ]ctfa ]ctfa ^hturgs Zhkphr Ybj \frtghrs, A.\. Rhfr ><6= (t`ru >/>0) ><6: ><6> ><66 ><6< ><<2 ><<0 ><<4 ><<9 ><<8 ><<= ><<: ><<> ><<6 ><<< 6222 6220 6224 6229 6228 622= 622: 622> 6226 622< 6202 6200 6204 6209

Zhkphr Ybj \frtghrs -<.0% >6.2% >=.>% 9.4% >6.8% >8.0% -:6.8% 4.4% ><.0% :.>% 66.2% ::.8% -6.<% <.6% 68.9% ->.6% >:.0% >=.4% 62.<% >:.9% 6>.=% >>.6% 6:.=% >4.=% 8.:% >=.9% 62.0% :4.6% >=.0%

Mcw Ocghs Bgmustrbfas -6.6% >2.4% 6<.>% 0.=% 6=.<% >>.4% -:6.2% 0.2% 62.6% 6.4% 8.:% >0.:% -68.6% -8.=% -=.4% >4.>% 60.6% >=.2% >0.0% :9.2% 8.<% 69.4% 4.=% >=.8% -<.4% :6.0% 69.>% 8.8% >4.>%

Z&\ 8<< 6.<% :>.=% 69.<% >.6% 68.6% >9.8% -:4.<% 8.8% 68.0% =.2% 6<.2% >0.4% ->>.6% -66.2% -2.6% >6.<% >0.9% ::.=% >:.<% :4.8% 6.:% 6<.6% 4.9% :<.8% -:.6% :6.4% 69.8% 8.>% 60.0%

Kusbgds cg ‑\hrbas ci Tfaa Ztrhht‛

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‑Gct hvhryt`bgd t`ft jcugts jfg nh jcugthm, fgm gct hvhryt`bgd t`ft jfg nh jcugthm jcugts.‛  Fanhrt Hbgsthbg

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‑\hcpah w`c abeh t`bs scrt ci t`bgd wbaa ibgm t`bs t`h scrt ci t`bgd t`hy abeh.‛ •

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Fnrf`fk Abgjcag

 Nfm bmhfs cg Tfaa Ztrhht typbjfaay frh gct nfm bmhfs ft t`h stfrt, nut rft`hr rft `hr dccm bmhfs tfehg tc hxtrhkh.

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 Tfrrhg Nuiihtt, Fggufa Nuiihtt, Fggufa Khhtbgd cnshrvftbcg

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Kusbgds cg ‑\hrbas ci Tfaa Ztrhht‛ (jcgt.) •

Tfaa Ztrhht‒s Kbstfehg Hkp`fsbs? \hrjhgtfdhs ci Gct`bgd  ^hshfrj` fgm Mhvhacpkhgt fs f \hrjhgt ci Zfahs  Tcrebgd  Tcrebgd Jfpbtfa fs f \hrjhgt ci Zfahs  Jfs` Iacw Jcgvhrsbcg ^ftbc  \hrjhgt ci Nusbghss irck Ghw \rcmujts (wbt`bg : yhfrs)  \hrjhgt ci Nusbghss irck Mhvhacpbgd fgm Hkhrdbgd Kfrehts  Fvcbm  Fvcbm Ifkbay-Jcgtrcaahm Jckpfgbhs

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‑Bg f jruha twbst ci brcgy, t`h pursubt ci prcibt ”  sckht`bgd t`ft Tfaa Ztrhht pus`hs sc `frm ” bs bs w`ft ahfvhs jckpfgbhs cphg tc nhbgd mbspafjhm.‛ mbspafjhm.‛ •

 Jafytcg J`rbsthgshg, ^huthrs J`rbsthgshg, ^huthrs Fudust ><66

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Kusbgds cg ‑\hrbas ci Tfaa Ztrhht‛ (jcgt.)

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‑Bgvhst fs t`cud` ycu frh f rh f pbact.‛  \rcihsscr Ofje KjMcgfam, Ztfgicrm Nusbghss Zj`cca 620>

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 Fgtbmcth tc Tfaa Ztrhht ‚ ifkbay-jcgtrcaahm jckpfgbhs

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wbt` t`h ‑jfpfjbty tc suiihr‛ rhpcrthm prcibts nurmhgs w`bah  pursubgd khfsurhs icr t`h t`h acgd-thrk bgthgmhm tc kfxbkbzh s`frh`camhr vfauh.

‑Gct hvhryt`bgd t`ft jcugts jfg nh jcugthm, fgm gct hvhryt`bgd t`ft jfg nh jcugthm jcugts.‛

‑\hcpah w`c abeh t`bs scrt ci t`bgd wbaa ibgm t`bs t`h scrt ci t`bgd t`hy abeh.‛

Nfm bmhfs cg Tfaa Tfaa Ztrhht typbjfaay frh gct nfm bmhfs ft t`h stfrt, nut rft`hr dccm bmhfs tfehg tc hxtrhkh.

Tfaa Ztrhht‒s Kbstfehg Hkp`fsbs  ^hshfrj` fgm Mhvhacpkhgt fs f \hrjhgt ci Zfahs

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 @hbgz Bgthrgftbcgfa  ^&M hxphgmbturhs vhrsus rcyfaty pfykhgts  Hfray pfrtbjbpftbcg wbt` kfguifjturbgd

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Tfaa Ztrhht‒s Ztrhht‒s Kbstfehg Hkp`fsbs  Tcrebgd  T crebgd Jfpbtfa fs f \hrjhgt ci Zfahs

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vs.

Tfaa Ztrhht‒s Ztrhht‒s Kbstfehg Hkp`fsbs  Jfs` Iacw Jcgvhrsbcg ^ftbc

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Tfaa Ztrhht‒s Kbstfehg Hkp`fsbs  \hrjhgt ci Nusbghss irck Ghw \rcmujts (wbt`bg : yhfrs)

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Tfaa Ztrhht‒s Kbstfehg Hkp`fsbs  \hrjhgt ci Nusbghss irck Mhvhacpbgd fgm Hkhrdbgd Kfrehts

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Tfaa Ztrhht‒s Kbstfehg Hkp`fsbs  Fvcbm Ifkbay-Jcgtrcaahm Jckpfgbhs

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‑Bg f jruha twbst ci brcgy, t`h pursubt ci prcibt ”  sckht`bgd t`ft Tfaa Tfaa Ztrhht pus`hs sc `frm ” bs bs w`ft ahfvhs jckpfgbhs cphg tc nhbgd mbspafjhm.  Jafytcg J`rbsthgshg, @frvfrm Nusbghss Zj`cca

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‑Bgvhst fs t`cud` ycu frh f pbact.‛

Ohpphshg Fvbftbcg J`frt

 Hyh tcwfrms faa bgstrukhgts

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Fatbkhthr Jckpfss Iuha Dfudh Dyrcsjcph \bact Ybsbcg Zphhmckhthr

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 Mc gct mbsjfrm Ohpphshg fvbftbcg j`frts

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 Fvcbm sbkpah, cgh vfrbfnah scautbcg  Ofkhs Jafre

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Jacsbgd Cnshrvftbcg Bt‒s hgtbrhay phrscgfa…bt‒s nusbghss.