Investment Philosophy
Why Value?
Value investing has attracted a reputation for dogmatism. But properly defined, it is broader, more flexible, and more grounded in probability than it first appears.
1. What value investing really means
At its core, value investing is a discipline for systematically exploiting mispriced securities:
Value investing is the practice of identifying a dislocation between the fundamental value of a business and the market price at which it trades.
That dislocation can come from many directions:
- •Underappreciated future growth
- •Underappreciated quality or durability of the business model
- •Overreaction to short-term setbacks
- •Misunderstanding of cyclicality or normalised profitability
- •Neglect, low liquidity, or institutional constraints
The common thread is that the market price does not fully reflect the economic value available to the long-term owner. Value investing is therefore not a style — it is a discipline for systematically exploiting mispriced securities.
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