Anyone interested in value investing?
Truly interested in the topic, been reading books about it for a couple of years now and training myself to have the mindset. Really want to work at a place that is a true value shop (imo any shops practicing short selling or the likes are not value investing).
Anyone in the same situation where you love the topic but unless you could raise money from families and friends and start your own fund, it seeems almost impossible to break into the sector as a fresh grad?
Value-oriented strategies haven't been working very well for the past decade or so, might want to consider broadening your career considerations.
True, but in the 50+ years prior, value investing has yielded higher average returns than growth investing. Top growth funds have also been yielding higher than normal returns in the past decade (non-adjusted for Covid) than the 50+ years prior.
Here’s a pretty comprehensive vid on the topic from Ben Felix that I recommend!
If you focus just on the last decade, sure. But value investing is basically a lifelong thing, like how Warrent Buffett does it. No one wanna get rich slowly.
I would like to raise money for value investing.. especially right now. Dave Rasmussen, founder & PM of Verdad Capital, does two really in depth podcasts on the subject in the “Invest like the Best” podcast. In the latest of the two podcasts, he talks about how value investing outperforms in crises. Highly recommend you give those a listen.
Thanks will definitely take a look.
I see myself doing it one day too but almost impossible to do it now. Buffett did it after working two years with Graham after some results (it was more like shareholder activism for him back then) but no one will give money to you if there's no provden results, which at least take 2 or three years.
So you're looking at LO firms but you can still join a L/S HF that has a value investing philosophy. Also, distressed debt investing is value investing so you might want to position yourself in a RX group in a bank and then join a distressed fund. I love the topic as well and truly enjoy valuation, financial statement analysis and the margin of safety but unless you're the child of a ultra wealthy family it is a pipe dream to set up a fund as a fresh grad.
yeah I agree, reality kicks in.
Long/short investor here. Would probably call the strategy “value” but I dunno, label has gotten hard to define. Certainly a fundamental concentrated fund with long hold periods so in that sense, value. But not constrained to idiot-proof “moat” businesses like Warren. More focused on identifying incorrect thinking in the market and exploiting it.
Possible to start out of college but not sure why you’d want to. Developing skills in IB or ER and then ideally a buy side stint where you can learn from others, is a good foundation to build. Adds credibility and makes capital raise a lot easier.
Thanks for the input and advice. I agree it's getting more difficult to define and like you said, many funds lean toward more of a "identify the market inefficiency" approach. I believe like what Munger, investing itself by definition should be value investing.
Have some experience in IB and PE, but I think my true passion is value investing. That's just me.
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