
Aswath Damodaran: Globalization Backlash
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
You are here: Home || All posts || InvestorNews || Bill Nygren: How to avoid Value Traps
In their recent commentary, Bill Nygren and his colleagues at Harris Associates discuss how to avoid value traps. In their perspective, value traps occur when a stock appears undervalued but fails to grow its per-share value at an acceptable rate. To avoid these traps, the Bill seeks stocks of companies with experienced management teams committed to shareholder value creation.
Despite the Oakmark Fund’s recent underperformance, Bill emphasizes the importance of adhering to a disciplined, time-tested investment process rather than making hasty changes. The team utilizes a “Devil’s Advocate” review process to challenge valuation assumptions, ensuring rigorous evaluation of investment decisions. This process has led to successful turnarounds for companies like Glencore and Mercedes-Benz, which were once detractors but became top contributors to the fund’s performance.
When a company doesn’t grow per share value at an acceptable rate, we consider the stock to be a value trap.
To avoid value traps, we seek cheap stocks of companies that are run by an experienced management team committed to creating value for its shareholders.
Share the news
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
In his recent article, NYU professor Aswath Damodaran shares his thoughts on how politics, globalization, and disruption has changed the investing landscape.
In this interview, Bill Nygren reflects on his career mistakes and lessons learned. These insights highlight the importance of balancing conviction with caution in investing and the need for value investors to adapt their strategies to include companies with significant intangible assets.
In this interview, Howard Marks shares his investment philosophy and lessons learned over his 55-year career, including contrarian investing, value versus quality and the inevitable market cycles.
In this interview at the 2025 MOI Global, Mohnish Pabrai shares insights on his investment philosophy and current market perspectives. The conversation covers various industries and investment approaches, with particular focus on cyclical businesses and special situations.