Here’s a great interview with contrarian value manager John Rogers on WealthTrack who says if you don’t follow the crowd you’ll be a better investor. “Value investing is a contrarian approach. You’re going to be buying when others are selling. When there’s a lot of fear out there you’re going to be the one feeling confident going in buying those stocks at bargain prices.”
On how to keep shareholder during periods of underperformance Rogers says it’s important to stay in touch with your investors and keep them focused on the long term. “People are more likely to stick with us during those inevitable downturns because we’ve been able to make the case that if you think long term you’re going to outperform and by communicating that strategy consistently and executing it consistently I think it builds confidence in customers.”
On lessons he’s learned from Buffett and Munger he says:
- Stay within your circle of competence
- Invest in what you understand
- Wait for the perfect pitch
On what type of companies to look for he says:
- Strong brand
- Strong franchise
- How are companies going to maintain their moat over the next 5 to 7 to 10 years
- Balance sheet strength is critical
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