Value Investing: Finding Solace In Discomfort

Value Investing: Finding Solace In Discomfort by Ayrton Dick, Burgundy Asset Management.

Value investing is not supposed to feel good. It’s supposed to be uncomfortable, even painful at times. In certain parts of the cycle we will feel validated, but it is only after we have endured long periods of discomfort.

By definition, value investing goes against the consensus. Sir John Templeton captured this idea well when he said, “If you want to have better performance than the crowd, you must do things differently than the crowd.” There is safety in adopting the crowd’s view, so value investing naturally feels counter-intuitive. When the average investor believes a company’s fate is questionable, but our in-depth research suggests otherwise, it takes...