Understanding Edge

A Research Process Deep Dive

Director of Research Micah Martin discusses how the analyst team approaches fundamental analysis.

The views expressed are those of Diamond Hill as of November 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of October 31, 2020, Diamond Hill owned equity shares of Cal-Maine Foods, Inc., Green Brick Partners, Inc., Alphabet, Inc. (Cl A). As of August 31, 2020 Diamond Hill owned debt in Home Depot, Inc.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Ready for Takeoff or Grounded Indefinitely? – An Airlines Update

Analyst Blake Haxton provides an update on where demand for air travel stands today and discusses the possibility of a stimulus package for airlines.

The views expressed are those of Diamond Hill as of October 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of September 30, 2020, Diamond Hill owned equity shares of Microsoft Corp., Allegiant Travel Co., Walt Disney Co. and Alaska Air Group, Inc. As of July 31, 2020 Diamond Hill owned debt in American Airlines, Inc., Delta Air Lines, Inc., Southwest Airlines Co., Walt Disney Co. and Alaska Airlines.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Breaking Up With Old Habits

Will consumption habits formed amid pandemic shut-downs be more lasting? Perhaps—and that can be key in understanding future demand patterns and how those influence businesses’ long-term earnings power.

The views expressed are those of Diamond Hill as of October 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

A Discussion With Chief Client Officer Jo Ann Quinif

Chief Client Officer Jo Ann Quinif shares how our client team has continued to serve clients remotely and what she views as unique attributes of the team.

The views expressed are those of Diamond Hill as of September 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Is Pharma Reentering a Golden Age of Innovation?

Innovation and productivity in the pharmaceutical industry has been in steady decline for decades. However, we believe the industry is poised for a comeback.

The views expressed are those of Diamond Hill as of September 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of July 31, 2020, Diamond Hill owned equity shares of Gilead Sciences, Inc., GlaxoSmithKline PLC, Pfizer, Inc., Alphabet, Inc. (Classes A&C), Novartis AG, Astellas Pharma, Inc. and Roche Holdings AG.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Energy & Airlines: An Update

Analyst Blake Haxton discusses the state of the oil industry after months of subdued demand and March’s price war, and shares where air travel demand stands today.

The views expressed are those of Diamond Hill as of August 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of July 31, 2020, Diamond Hill owned Alaska Air Group, Inc. (equity) and Allegiant Travel Co. (equity).

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Can Smart Buildings Curb COVID-19?

Smart, energy-efficient buildings have been in demand for years, but their features have historically been viewed as luxuries versus necessities. COVID-19 has turned that view on its head.

The views expressed are those of Diamond Hill as of August 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of July 31, 2020, Diamond Hill owned Johnson Controls International PLC (equity), Carrier Global Corp. (equity) and Honeywell International, Inc. (equity).

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Through the Eye of the Storm—a Structured Market Recap

Fixed income portfolio manager Henry Song reviews the volatile first half of 2020 in the securitized market, from the early days of the pandemic to the more recent recovery.

The views expressed are those of Diamond Hill as of July 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Value Investing, Evolved

CIO Austin Hawley discusses the dramatic underperformance of value stocks relative to growth stocks, why traditional definitions of value may need to evolve with the changing economy and why price is still an important factor in determining future returns.

The views expressed are those of Diamond Hill as of June 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of May 31, 2020, Diamond Hill owned Facebook, Inc. (Cl A) (equity) and Alphabet, Inc. (Cl A) (equity). As of March 31, 2020 Diamond Hill owned Netflix, Inc. (debt).

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

How Machine Learning Is Creating Value for Google and Facebook

From smartphones to voice assistants, machine learning and AI techniques are becoming integral in our daily lives. Internet advertising analyst Varun Gupta examines why these technologies are central to Alphabet and Facebook’s success.

The views expressed are those of Diamond Hill as of June 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of May 31, 2020, Diamond Hill owned Facebook, Inc. - Class A (equity), Alphabet, Inc. - Class A (equity), Tencent Holdings Ltd. (equity), Berkshire Hathaway, Inc. - Class B (equity), Walt Disney Co. (The) (equity) and Microsoft Corp. (equity). As of March 31, 2020 Diamond Hill owned Netflix, Inc. (debt), Walt Disney Co. (The) (debt), Berkshire Hathaway Financial (debt) and Apple, Inc. (debt).

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.