In the latest edition of Forbes.com’s “Intelligent Investing”, Ariel Investments CEO John Rogers Jr. discusses his investment strategy, and explains why he’s high on several media companies and other out-of-favor firms right now. “We love low P/Es,” says Rogers, whose flagship Ariel Fund has returned close to 7% per year over the past decade while the S&P 500 has been in the red. “We also want to do the discounted cash flow analysis that most business school students learn to be able to look to the future and see the cash flows and discount them back. And then we look at transactions that have occurred in that specific industry, what companies have been sold for either in the private equity market or to strategic buyers.” Rogers also says that investors need to make sure that a firm has “barriers to entry, a real moat around the company which makes it hard for new people to come in and compete.”

For more on Rogers’ strategy, and some of his current favorite picks, click on the link to the full video below.