In their recent Value Investing Masterclass, Rich Pzena and Joel Greenblatt discuss all things value investing including their days spent worked together on a Ben Graham paper in college. During the interview Rich Pzena also discusses his thoughts on why value investing and excess financial leverage are not good bedfellows. … Read More
Is The Slowdown In Mean Reversion The Reason That Value Investing Has Lost It’s Edge?
Late last year Baruch Lev from the New York University and Anup Srivastava from the University of Calgary wrote a paper titled – Explaining the Recent Failure of Value Investing, which provides their explanations on why value investing has lost it’s edge in the past twelve years. One of the main … Read More
First Eagle: The Timeless Advantage of Value Investing
Here’s a great interview at Advisor Perspectives with the value investing firm First Eagle titled – The Timeless Advantage of Value Investing. During the interview the First Eagle team was asked – can the success of value investing persist when so many investors have been schooled in the works of … Read More
Pzena Investment Management: Webinar EM Value: How Trade Wars Create Opportunities in Emerging Markets
Here’s a great little webinar from value investing firm – Pzena Investment Management which discusses how trade wars create opportunities in emerging markets saying: “This is a particularly interesting time to invest in emerging markets. Global trade wars have created opportunities where companies with strong competitive positions are caught in … Read More
FT: Has The Value Investing Fightback Begun?
Here’s a great article from The Financial Times titled – Has the value investing fightback begun?, which discusses whether value investing is making a fightback as US value stocks have gained almost 10 per cent since the beginning of September. Here’s an excerpt from that article: Like an ageing, unfancied … Read More
What Do The Top Value Funds Have in Common?
Over the past two days we posted Part 1, and Part 2 of Morningstar’s three part series on Value Investing. Following is the final part in the series which examines the common themes linking the top value funds during the past several years. Here’s an excerpt from that article: Which … Read More
Value Managers On Why Value Investing Has Underperformed
Yesterday we posted Part 1 in a three part series by Morningstar titled – Morningstar: Value Investing: A Deep Dive Into Performance. Today we look at Part 2 in which Morningstar analysts provide their opinions on why value investing has underperformed for most of the last two decades, based on what … Read More
Morningstar: Value Investing: A Deep Dive Into Performance
Here’s a great article at Morningstar that does a deep dive on the underperformance of value investing over the past twenty years. The article is the first in a three part series. The second part will include Morningstar’s fund analysts providing color on what they have picked up in their … Read More
Bloomberg: A Real Shift May Be Underway Towards Value Investing
Here’s an article from Bloomberg titled – For a Strategy Left for Dead, Value Stocks Sure Do Return a Lot, which discusses the possibility that a real shift may be underway towards value investing: Ask any Wall Street wag and he’ll tell you: the time-honored strategy known as value investing is … Read More
GMO: Are We Witnessing The Best Opportunity Set For Value Investors In The Past 20 Years
GMO recently released its Q3 2019 quarterly letter titled – Shades of 2000, which reports that value investors could be seeing the best opportunity set in the past 20 years. Here’s an excerpt from the letter: The years leading up to the 2000 stock market bubble were extraordinary and unprecedented. … Read More
Schroders: Has Value Investing Been Disrupted?
Here’s an article from Schroders which discusses the impact of technology on traditional value investing: Disruption is a major theme in stock markets today with companies such as Amazon and Uber challenging the traditional approach to their respective industries. Such companies are an example of so-called “growth” stocks, with investors … Read More
Latest Research: Will Value Investing Ever Rebound?
Here’s a great new research paper titled – Explaining the Demise of Value Investing. The paper discusses the two major reasons for the demise of value investing and speculates on the likelihood of a resurgence. Here’s an abstract: The business press claims that the long-standing and highly popular value investing strategy—investing in … Read More
Bloomberg: Why Value Investing Has Been Doing Badly
Here’s a great podcast from Bloomberg with hosts Joe Weisenthal and Tracy Alloway discussing – why has value investing been doing so badly. One of the oldest, most basic strategies in investing is value investing, which, for lack of a better way to put it, means “buy stocks that are … Read More
Cliff Asness: Why It’s Hard to Say When Value Wins Again
Here’s an excerpt from the AFR in which Cliff Asness is discussing why it’s hard to say when value investing wins again: It’s the question every almost every fund manager wished they had the answer for. And not surprisingly, it’s one that Cliff Asness gets asked the most: When is … Read More
GMO: Just Why Has Value Underperformed Growth For The Past Decade?
Here’s a great new paper by the team at GMO which discusses the factors that have caused the underperformance of value investing in the past decade, stating: The performance of U.S. value over the last decade has led many to wonder whether the value premium has been completely eroded. We … Read More
Charlie Munger: The Two Markets That Are Most Inefficient
Here’s a great excerpt from Whitney Tilson’s notes on the 2007 Wesco Annual Meeting. During the meeting Charlie Munger provides some great insights on the growing popularity of value investing, efficient markets, and the two markets that are most inefficient: Is value investing becoming more widespread? I think our way … Read More
Walter Schloss: It’s An Irrational World, So You Can’t Always Do Things Logically
Here’s an excerpt from a 1989 article featuring Walter Schloss titled – Searching for Value. In the article Schloss provides some great insights into the difficulty of investing logically in an irrational world: A value-minded investor. Schloss views his business as rational—finding securities that are objectively undervalued compared to their … Read More
Why Has Value Investing Underperformed?
https://www.youtube.com/watch?v=H7_QJyxr2W0?start=2331 During his recent interview with Tobias, Jake Taylor of Farnam Street provides some great insights into why he thinks value investing has had such a rough time lately, saying: Jake – I think it’s a confluence of factors. I don’t know honestly. If I had to assign how much … Read More
Forbes: Contrary To Popular Belief, Value Investing Is Not Dead
Here’s a great article at Forbes discussing the recent performance of value investing saying: “However, a hundred years worth of data says value investing works. One cycle doesn’t change that.” Here’s an excerpt from that article: Many people think value investing is dead. It’s not. Style leadership rotates across cycles. Also, adjusting … Read More
Christopher Davis: Value Investing Opportunities Exist When A Company Is In The Headlines For Unfavorable Reasons
Value investor Christopher Davis just released his 2018 Fall Review for the Clipper Fund. The Clipper Fund returned 6.1% in the first seven months of 2018, and over the last three years has slightly outperformed the S&P 500 Index with a cumulative return of 43% versus 42% for the index. … Read More