Quote #18

A value investor’s point of view

Successful investing aims to maximize realized returns for the investor after taxes and transaction costs. We are all familiar with the pitfalls of market timing strategies: since turning points are not possible to predict, market timers rely on uncertainty bets. Recent news reported that the famous short-seller Jim Chanos, who correctly predicted the downfall of Enron, Wirecard, and Hertz, is closing his hedge funds due to losses accumulated on short positions in Tesla and the S&P 500 Index. The principles of value investing have stood the test of time: corporations that produce steady and increasing cash flows, make sound investments in core activities of the economy, and operate as responsible corporate citizens will improve in value, regardless of market conditions, hence provide healthy long-term returns to investors.

Dr. Krisztina Büti, PhD, CFA, MBA
Assistant Teaching Professor of Finance and Accounting
Rady School of Management
University of California at San Diego

The views of guest writers do not necessarily reflect the views of Brandes Investment Partners.