Join John Rogers, founder and co-CEO of Ariel Investments, a celebrated value investor specializing in mid- and small-cap stocks. He discusses the relevance of value investing against a backdrop of modern trends like AI and passive investing. Rogers highlights his strategies for identifying overlooked 'orphan stocks' and shares intriguing investments, including The Sphere in Vegas. He emphasizes building relationships with company management and the importance of looking for competitive advantages, all while navigating today’s complex market landscape.
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insights INSIGHT
Value Investing Philosophy
John Rogers, founder of Ariel Investments, focuses on undervalued small and mid-cap stocks.
He believes the current market, dominated by mega-cap tech, resembles past bubbles like the Nifty Fifty.
insights INSIGHT
Value Investing’s Resilience
Value investing is not dead; the current cycle of growth stock outperformance is unusually long.
Extremes create opportunities; when others are greedy, be fearful, and vice-versa.
In this book, Burton G. Malkiel argues that stock market prices are essentially random and unpredictable, aligning with the efficient market hypothesis. He discusses historical financial bubbles, the futility of trying to beat the market through technical or fundamental analysis, and the importance of a diversified portfolio. The book also covers various investing techniques and theories, including modern portfolio theory, and advises investors to adopt a long-term, disciplined approach to investing.
These days if you talk to people about the stock market, they might talk to you about the effect of the Fed. Or they'll talk about the Mag 7 and AI capex spend. Or they'll extoll the virtues of passive, low-cost investing. It seems like you hear less and less about the art of security selection: Finding cheap diamonds in the rough that have been overlooked by other investors. But some people are still keeping that world alive. John Rogers is the founder and co-CEO of Ariel Investments, and in his primary mutual fund he invests only in mid- and small-cap companies. Recorded live on stage at the Future Proof Festival in Huntington Beach, CA, we talk about his approach. He explains why he believes value investing still works, and the process he uses to select individual names. We also discuss what he looks for and how he researches stock picks. Among other things, he tells us why he's invested in The Sphere (yes, that Sphere in Vegas) as well as the company that makes the McFlurry machines for McDonald's.
Odd Lots 
