Chabraja

"Chabraja was also an aggressive repurchaser of General Dynamics’ stock. Belying his legal background, he thought like an investor, continually comparing the price of General Dynamics’ stock with its intrinsic value and acting aggressively when he saw discrepancies. As Ray Lewis said of the Chabraja era, “We bought heavily when we thought we could take advantage of market mistakes in pricing our stock.”13"

"As Chabraja described it to me, “What drove me was the realization that the stock was trading at a significant premium to our historic norm: twenty-three times next year’s projected earnings versus an historic average of sixteen times. So what do you do with a high-priced stock? Use it to acquire a premium asset in a related field at a lower multiple and benefit from the arbitrage.”"