The Low Interest Rates And The Value Investor – An S&P 500 Story

The Low Interest Rates And The Value Investor - An S&P 500 Story

by Anton F. Balint
[buffett]

Never before has the interest rate environment been so unusual, uncertain and aggressive for company valuation and capital allocation. The debt issued by the United States, in the form of Treasuries, has been for decades considered one of the safest assets for investors to hold. For example, the interest rate on the 10 year US Treasuries has been set as a risk free rate of return by many value investors, such as Warren Buffett (The Warren Buffett Way (2013) by Robert G. Hagstrom) and Joel Greenblatt (The Little Book That Beats the Market (2010) by Joel Greenblatt). Presumably, the price of a...