Generally accepted investing wisdom has always called for long-term investors to “buy the dips” and add to their positions as the market declines. This advice makes sense in most cases, but as the WSJ’s Jason Zweig points out, the “buy the dips” refrain needs to be thought about in the context of an investor’s time horizon and how market returns occur. For younger investors, by the dips can be a very sound philosophy, but for… Read More
Is there a single, silver bullet valuation metric that you can use to accurately evaluate any stock in the market? An interesting recent piece from Barron’s looks at a couple of attempts to develop one.
“Don’t chase performance” is a lesson any good value investor should have learned. But in a piece for Canadian MoneySaver, Validea CEO John Reese looks at how keying on high-momentum, hot stocks can actually help boost returns in a value-oriented portfolio.
Benjamin Graham is known as the Father of Value Investing, and this video from the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School offers a great look into both Graham the investor and Graham the person.
Which valuation metric is best? In his latest for Canada’s Globe and Mail, Validea CEO John Reese looks at just that question, weighing the pros and cons of several popular metrics.
Value stocks have been faring quite well recently. But in his “Intelligent Investor” column for The Wall Street Journal, Jason Zweig says that the key to value investing is how you respond when times get tough. Zweig talks with value investing legend Jean-Marie Eveillard, who says that “most people aren’t cut out for value investing because human nature shrinks from pain.” And there’s plenty of pain in value investing — even for the greats. Zweig… Read More
Hedge fund guru Seth Klarman rarely talks with the media, but he recently gave an in-depth interview to Charlie Rose through the group Facing History and Ourselves. And Business Insider has provided a nice summary of the legendary value investor’s wisdom. Much of his advice focuses on the psychology of value investing. “Investing is the intersection of economics and psychology,” Klarman says. “The economics, the valuation of the business, is not hard. The psychology —… Read More
Michael van Biema, whose value-focused firm’s funds garnered several InvestHedge awards in 2010, says the Asian markets are offering particularly good opportunities for value investors. “They’re getting really, really cheap again, which of course, we like,” van Biema tells Forbes.com in reference to Asian stocks. “And you get a huge tail wind of growth. The best environment for a value investor is a place where companies get highly mispriced, so that you can buy firms… Read More
Top fund manager David Winters says it’s a “great time to be a value investor”. Winters tells Bloomberg that “I think there’s a lot to do today because people are so negative. It’s a great time to be a value investor.” One area where he’s finding a lot of value: Switzerland. Winters also talks about his broader investment philosophy, which involves looking for businesses that have improving economics, a cheap share price, and management working for… Read More
Warren Buffett has said that investing is simple, but it’s not easy, and in their latest Kiplinger’s column, value investors Whitney Tilson and John Heins explore that subject. “In The Little Book That Beats the Market, published in 2005, star money manager Joel Greenblatt describes a ‘magic formula’ for success that ranks stocks based on only two factors: share price relative to a firm’s earnings and return on capital,” Tilson and Heins write. “After reading… Read More