Bob Robotti: How Value Traps Can Make Great Investments — If You Invest with Care!

In investing, one of the most fundamental lessons students are taught is to avoid value traps. However, one top investor explained how he uncovers significant value in value traps.

At the Capstone Student Investment Conference, Bob Robotti of Robotti & Company Advisors shared his presentation entitled “Value Traps Unchained!”

In for the long haul

He noted that one of the perennial problems value investors have is buying too soon or buying companies that get classified as value traps. However, Robotti sees opportunities in staying with those companies through their challenging times, understanding the opportunities, seeing the value trap “unchained,” and putting capital to work.

Robotti takes a single focus in what he does, which is Ben Graham’s valuation principles. He thinks...