Patient And Brave: Two Sides Of The Same Value Investing Coin

Most value investors will tell you how much they respect Benjamin Graham and Warren Buffett, and how they stay away from the hot stock of the moment, but this seeming uniformity covers up some very different approaches to looking for value. Part of this is that finding a true deep value stock, one that is trading at a discount to its assets, is always challenging and not always feasible, so even investors with the same starting point move in different directions.

“We have long believed that the Value premium was driven both by a combination of low beta/high quality compounding ‘patience’, and by buying distressed assets at significant discounted valuations on the premise that whilst you may lose a few...