Following a decade of above average stock market returns, this memo explores the growing importance of selectivity and active portfolio management in the years to come.
Focusing on the absolute value of companies helped weather a difficult 2022. As we turn the page into 2023, our approach should continue to benefit investors.
Will the economy soon shift from a state of undersupply to oversupply? This memo explores some of the relevant investment opportunities and risks for long-term value investors.
With the fear of recession on investors' minds, Dale Harvey shares his thoughts on managing portfolios in uncertain markets.
Evaluating the quality of earnings growth expectations embedded in current business valuations is extremely important in these uncertain times.
Avoiding bear markets is like avoiding mountain lions in nature. Staying calm in the face of fear is key.
Factors leading to growth outperformance do not appear sustainable. We believe the current environment is particularly well-suited to our absolute value investment process.
These days, the investment highway seems more treacherous than an L.A. freeway in a rainstorm. Defensive techniques aren’t just for driving. Value has become defensive again, just as it was in the aftermath of the late 1990s Tech Bubble.
This is the first in a series of memos in which we will address common questions from our clients about the Partners Strategy and Value investing. In this insight, we discuss why we believe the value opportunity in our Financial Services holdings is compelling in the current interest rate environment.
Poplar Forest’s portfolios are currently valued at one of the largest price-to-earnings discounts to the S&P 500 since we’ve been in business. In effect, the market is suggesting that the outlook for our companies is less attractive than it has ever been. We disagree. Our companies may be underdogs, but when we look out over the next 3-5 years, we believe that their fundamentals will more than beat the spread.
