Bill Nygren on traditional value investing.
"Twenty years ago you could just buy low P/E, low price to book value stocks and that was enough to be attractive...
The simple, obvious stocks that look cheap generally deserve to be cheap"
"Twenty years ago you could just buy low P/E, low price to book value stocks and that was enough to be attractive...
The simple, obvious stocks that look cheap generally deserve to be cheap"
Nygren's willingness to adapt, and recognition that it is necessary to do so to survive, is a large part of the reason that over 10 years he has crushed the S&P 500 while many of his value peers like Third Ave, Longleaf, FPA Crescent, and Fairholme have all underperformed.
Same picture going back 15 years. Only Oakmark has outperformed the S&P.
This summary of Baupost's letter is good, but if you can get your hands on it, definitely worth a read. Klarman talks about secular change driven by technology and how investors must take the time to learn and adapt. blogs.wsj.com/moneybeat/2018…
meanwhile
Davis should read Cliff on momentum
John Harris of Ruane, Cunniff:
"The history of our business is littered with cautionary tales of people who were successful in a certain paradigm who had trouble adapting"
"The history of our business is littered with cautionary tales of people who were successful in a certain paradigm who had trouble adapting"
Dan Loeb:
“In a world of increasing disruption in virtually every industry, we recognize that we must continuously evolve our framework or risk being disrupted too”
“In a world of increasing disruption in virtually every industry, we recognize that we must continuously evolve our framework or risk being disrupted too”
Darwin is often misunderstood, says Markel’s Gayner, who counts both Amazon and Alphabet among his holdings. “It’s not survival of the fittest, but those who are most adaptable to change, that make it through.”
fortune.com/longform/value…
fortune.com/longform/value…
"Now, in front of roughly 40,000 shareholders and fans, [Buffett] was intimating that we should become familiar with a new reality: The world was changing, and the tech companies that value investors used to haughtily dismiss were here to stay—and were immensely valuable."
