Jeremy Schwartz, Global Chief Investment Officer of WisdomTree, discusses the importance of value investing and long-term performance, Warren Buffett's investment strategy, the challenges and sustainability of growth investments, and the advantages of value investing for long-term returns.
Value investing focuses on assessing stocks based on fundamental metrics and emphasizes long-term strategies and underlying business fundamentals.
Value investing, particularly with high-dividend stocks, has the potential for long-term outperformance and lower risk compared to stock picking strategies.
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Understanding Risk and Resilience in Business
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The Concept of Value Investing
Value investing involves assessing the price of a stock in relation to fundamental metrics like dividends and earnings. The focus is on the present value of future cash flows and judging a stock based on investor returns. It emphasizes long-term strategies and the underlying fundamentals of a business.
Value Investing Strategies and Performance
Value investing, particularly with a focus on high-dividend stocks, offers potential advantages in the long term. During the past 60 years, the cheapest stocks have outperformed the market by 200 basis points per year, highlighting the potential wealth accumulation. Value indexes tend to have lower risk and volatility compared to stock pickers, providing a margin of safety for investors.
How much you pay for stocks really matters. Should value investing be part of that strategy? To find out more, Barry Ritholtz speaks with Jeremy Schwartz. Schwartz is Global Chief Investment Officer of WisdomTree, leading the firm's investment strategy team in the construction of equity Indexes, quantitative active strategies and multi-asset Model Portfolios.