At the London Value Investor Conference 2025, Simon Adler of Schroders spoke on the Learning Hard Lessons, where he outlined the Schroder Global Value Team’s disciplined investment process and reflected on a failed investment to illustrate key lessons investors can learn.
Our process
- Discipline
- We start with valuation screens - we look for low valuations. That is where we find our pick
- We build financial model - 10 years of history, forensic details so we find out what happened in bad times
- We ask why the stock is cheap - we call it 7 red questions - where is the problem
- We then value the business against the risks we found
- We store all the data
How rigorous is the analysis? Adler details it as follows:
Every single stock we've looked at Since 2014 we've saved in a consistent format, the model, the seven regressions, the risk or the reward, every person on the team, every member of the team, have saved it in a very consistent way.
We've got David scientist, John Yao on our team, and a group within our team that specifically spend their time saying, what lessons can we learn, but across a big sample size, a big data set, a consistent data set, using the same process and the same philosophy all of the time, a unbelievable resource.
We think this is a superpower for us in terms of our ability to get better and better and better, to be the best family managers we can be, to deliver the best performance we can that is our objective. That's what we're seeking to do, and this is our best shot at achieving that.
Gain premium access to NY Sohn's top ideas—save 20% with code CONFERENCE20.
Our stock pick - we will not tell you the name - we call it mystery stock
- we found it as one of the 20% of cheapest companies in the market
- We have done 94 iterations of the model
