By co-blogger Sandesh Trivedi of
This is part II of the value investing seminar conducted by Bruce Greenwald. Part I can be found here.
I will give a brief bio about Bruce Greenwald to those unfamiliar with him.
Bruce Greenwald is director of research at First Eagle Funds. He is also the Robert Heilbrunn Professor of Finance and Asset Management at the Columbia Business School. Greenwald is academic director of the Heilbrunn Center for Graham & Dodd Investing. He received the Columbia University Presidential Teaching Award. More than 650 students take his courses every year in subjects including value investing, economics of strategic behavior, globalization of markets and strategic management of media.
Greenwald has authored several books. He wrote a phenomenal book on value investing titled Value Investing: From Graham to Buffett and Beyond ,and has written several other books on topics including globalization, competition and media companies.
In this segment Dr. Greenwald argues how cheap, obscure and ugly stocks outperform the expensive and glamorous stocks. He states there is enough statistical evidence which shows that over the long term value wins. He advises people to look at stocks which have not underperformed the market for months, but for several years. Greenwald also criticizes the use of DCF for valuing a stock.
Below is the video. It is a bit difficult to view. Click on the play button and a pop-up will show up. Ignore the new site that shows up and click the play button again.