As promised recently we are updating/cleaning the investor resource pages on a regular basis. This week, we’ve updated the pages of David Tepper, Jim Chanos, Seth Klarman, John Paulson and today we built a new resource page for David Herro .
Below is a partial excerpt from David Herro’s page followed by link to the full page, which can also be found under Value Investors tab on the top of the page.
Herro says that he started out as a pure Graham and Dodd value investor, focusing primarily on low price/earnings ratios, good balance sheets and high dividend yields. But he moved away from this strategy early in his career. When asked why, he continues to say the problem with that strategy is “you can get caught in too many value traps.” Herro concluded he was better off focusing mainly on two variables in weighing investment attractiveness: company valuation and business quality.
See full page here.