Comments on: The end of value investing?

By: Mr. Market refuses to do what he’s supposed to, apparently « Greenbackd

Mr. Market refuses to do what he’s supposed to, apparently « Greenbackd — Fri, 23 Jul 2010 04:04:12 +0000

[...] articles pop up occasionally. Remember the article What Would Warren Do? where Megan McArdle interviewed a fund manager under the Omaha twilight who suddenly said, “The [...]

By: The end of value investing? | GregSpeicher

The end of value investing? | GregSpeicher — Thu, 01 Jul 2010 12:56:45 +0000

[...] of the blogs I have been following is called Greenbackd: Undervalued Asset Situations with a Catalyst. They do a nice job of covering traditional “Ben Graham” type stocks where the entire [...]

By: Value Investor

Value Investor — Thu, 29 Oct 2009 00:23:53 +0000

This is a NCAV site. Why are you here? Also, I would be more than surprised if anyone from the technical world, such as yourself, has made a profit equal to the ones that have been provided through NCAV investment opportunities.

By: Dave

Dave — Wed, 28 Oct 2009 23:42:04 +0000

I really wish all you bloggers would stop promoting NCAV. Some of us are trying to make some money while we can!

By: Good companies at cheap prices : Interactive Investor Blog

Good companies at cheap prices : Interactive Investor Blog — Wed, 26 Aug 2009 17:00:59 +0000

[...] Megan McArdle says value investing might not survive Warren Buffett, Greenback’d says ‘phooey’. [...]

By: Rishi Gosalia

Rishi Gosalia — Sat, 22 Aug 2009 04:24:59 +0000

I would like to add names of the other value managers that will keep the torch moving forward: Bob Rodriguez at FPA Capital, Prem Watsa at Fairfax, Mason Hawkins and Staley Cates at Longleaf, Bruce Berkowitz at Fairholme, Robert Goldfarb and David Poppe at Sequoia, Amit Wadhwaney at Third Avenue, Chris Davis at Selected and Clipper, Frank Martin at MCM, Eddie Lampert at Sears, Ian Cumming and Joseph Steinberg at Leucadia, and Tom Gayner at Markel.

Warren Buffet is probably the most famous value investor with the most following. But these managers and many others in the making will continue, as the author of this blog said, in obscurity.

One reason why value investing will continue is the institutional imperative of wall street. As long as there is wall street, we will have the institutional imperative to sing and dance in momentum. Seth Klarman talks about this factor in Margin of Safety in much detail and refers to it as one of the main reasons for markets to offer bargains from time to time. Jeremy Grantham at GMO puts the institutional imperative in his words by calling it the cycle of “career risk”. Managers on wall street, because of career risk, start herding, causing prices to move away from value and thereby market inefficiency, leading value managers to find bargains, leading to mean reversion, leading to timing uncertainty, finally leading back to career risk for the managers on wall street.

By: widemoat

widemoat — Thu, 20 Aug 2009 16:00:29 +0000

Thanks Shai. Klarman, Munger, et al realize that investing mistakes are often intellectual (and moral?) mistakes. Greed, haste, hubris, biases…

It is not enough to have a roadmap. We have to train ourselves to be good map readers. And that is nothing but consistent, daily work, in my experience.

By: widemoat

widemoat — Thu, 20 Aug 2009 15:57:37 +0000

Here, here to that, Anon. To that day when every investor buys index funds…

By: Shai Dardashti

Shai Dardashti — Wed, 19 Aug 2009 22:58:25 +0000

“So if the entire country became securities analysts, memorized Benjamin Graham’s Intelligent Investor and regularly attended Warren Buffett’s annual shareholder meetings, most people would, nevertheless, find themselves irresistibly drawn to hot initial public offerings, momentum strategies and investment fads. People would still find it tempting to day-trade and perform technical analysis of stockcharts. A country of security analysts would still overreact. In short, even the best-trained investors would make the same mistakes that investors have been making forever, and for the same immutable reason – that they cannot help it.” – Seth Klarman

By: Anon

Anon — Wed, 19 Aug 2009 21:12:44 +0000

Awesome. I say let us encourage her to spread these untruths. We will be better off for it.