Value Investing

“One of the reasons that value investors have underperformed in the last 10 years is that There's a lot of technological disruption that's taking place, and it takes place faster than it used to. When we underwrite a mediocre business and we project out cash fl…”

“Buffett also in that article makes the observation that value investing is something not everybody is comfortable with. But that it's like an inoculation. When you get introduced to the approach, either it makes sense and you get it or you don't.”

“An investor has to be thinking about not just cyclical change, like Graham and Dodd were worried about in the Depression, but secular change as well, and the combination of that, I think, has made investing harder and value investing harder”

“The hardest thing about value investing without catalysts is you can own something that's out of favor for an incredibly long time and over five or 10 or longer year period. Looking, being early and being wrong look exactly the same, and you can start to get c…”

“Money has tended to flow into growth and out of value, some of which, by the way, justifiably, because disruption and a lot of businesses have had their long-term prospects damaged, but nevertheless, I think, in many ways, a big overshoot as people have become…”

“Value investing also can be buying something at a very expensive multiple or a very high, I shouldn't say expensive, I should say a very high multiple, but that there's value there because of what you believe in the growth and the future.”

“And by the way, when I say the value investor does this and the growth investor does that, Probably the biggest single theme of the memo was that that dichotomy should not be so hardwired.”

“The period from 1992 after the initial bursting of the bubble really Up until I think the global financial crisis and beyond, until we got into a global era of zero rates around 2015 or 20 16, value investing was the predominant form of investing, and certainl…”

“Capitalizing on others desire to avoid volatility is what makes, makes value investing work.”

“You want to buy these big capex plays during the industry down cycle and then patiently hold on to them till the industry upcycle is in full force. This is how you reap maximum capital appreciation, and this is how you get the big, big multi-bag returns.”

“The currency risk is relatively expensive most of the time. So the best hedge for the currency and for volatility is growth in emerging market. It's not value.”

“Candidly, the single largest investment regret I have is having traditionally been a value investor, not having recognized the power of growth over the last five years. And pivoting our portfolio to embrace those models at what appeared to me to be relatively …”

“And that's one of the lessons I think that I've learned over the last 30 years is the competitive advantage of just crunching numbers doesn't exist anymore. Maybe 30 or 40 years ago it did, but not today.”

“When you're a contrarian and things go wrong, you look like an idiot, and that's an occupational hazard that a contrarian has to live with. Maybe it's something in my personality type that I'm okay looking dumb occasionally, but that psychological difficulty i…”

“Focusing on The qualitative assessments of a business around moats and culture and how that translates into the durability of a company's growth rate. I think that is far more predictive of a successful investment than trying to find things waiting for price b…”

“It's never enough for me to just be looking at understanding a long-term undervaluation, you've got to have a catalyst which will draw people's attention to the valuation.”

“Where finding the thing that could be amazing is the opposite of making sure you don't lose money, right? Sort of venture capital portfolios and value investing portfolios have the opposite skews. I grew up learning that you'll do well if you never lose any mo…”

“2000 to 2002 was a wonderful period for value. The similarity to the 1994 to 1999 period is this has been another dreadful period for value as a strategy. We see that kind of on a individual stock level. It's also been a lousy period for valuation driven inves…”

“We don't see that level of disgust with the idea of value today that we did back then.”

“You could actually think of what we do as value investing in a way, because what we do is we price the risk that a company can actually generate this really valuable prediction. And when we meet a company, they're probably at 30 to 50% accuracy on a model, whi…”

“So if you buy in value today, you, on average, earn a little bit of alpha for a really long time. Most of it's early on, but you continue to earn marginal monthly alpha for up to 10 years.”

“That says that the source of the excess return is not knowing about the thing. It's doing the thing.”

“You could be the best business analyst in the world, and you might have a great long-term track record and things might be okay, but there are limits to value investing, obviously.”

“There really literally is no such thing as value investing in startups.”

“I think value investing is not a winning strategy when it comes to being an angel investor most of the time.”

“In the early nineties, Yale's US equity portfolio and international equity portfolio long only were by choice biased towards small cap and value.”

“Cause it's not enough to find a 50 cent dollar bill, Warren realized, if the dollar value didn't grow. Because to recognize that discount, you'd had to somehow close it, and your internal rate of return depended entirely on how quickly that happened. And so if…”

“Ben Graham, who sort of developed the ideas of value investing back in the thirties and forties, when he made about 22% per year through the depression in World War II, with what amounts to, in today's dollars, a billion dollar fund”

“Value investing doesn't work in, in private company markets.”