Specialization Key to Becoming a Successful Value Investor

Recent worries that market indexes have been skewed higher by a small number of tech companies have started to subside, according to a recent article by Validea CEO John Reese for The Globe and Mail. Reese cites comments by industry experts, including Robert Shiller, Wharton School professor Jeremy Siegel and GMO co-founder Jeremy Grantham, the consensus of which is that the market is not in danger of overheating and may continue to inch upward. “If these expectations become reality,” writes Reese, “It will become all the more important to hunt for value.” However, he argues, this becomes tougher as more […]

Columbia’s Bruce Greenwald on Value Investing

When Columbia professor Bruce Greenwald first arrived at the university, value investing wasn’t terribly popular, but he was convinced it was a much better approach. This according to a recent interview with Barron’s. Here are some highlights from the interview: “Specialization is an old and honorable Graham and Dodd tradition.” Greenwald references successful value investor Mario Gabelli, arguing how his specialties have served him well. “When you start out,” he says, “you want to have an industry focus.” He says this is the advice he gives his students. Value investing is about more than buying cheap stocks, according to Greenwald. “People […]

How Greenwald Values Stocks

In a wide-ranging interview, value investing guru and Columbia Professor Bruce Greenwald recently talked with the Motley Fool about a variety of issues, including the current state of the market and how he values stocks. Greenwald explains why the shifting of the economy toward more service-oriented, locally focused businesses means profit margins may well remain above historic norms. He also talks about the difference in evaluating growth and value stocks. “In the non-growth stocks, which are the non-franchised stocks, it’s always been the case that traditional valuation metrics apply, and they continue to apply,” he says, referring to metrics like […]