VALUE Cville Episode 7 - Paul Johnson Part 2
Oct 8, 2025
In this engaging discussion, seasoned value investing educator Paul Johnson shares insights into the evolution of investment strategies. He debates whether outperforming the index is truly the right goal and explores how artificial intelligence has changed the investing landscape. Paul highlights the importance of relationships and human judgment as lasting advantages in a tech-driven world. He also delves into the significance of motivating factors for wealth, emphasizing the pursuit of financial freedom over mere accumulation.
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Episode notes
Evolution Of Value Investing
- Value investing has evolved from net-nets to wrestling with how much to pay for growth in global, high‑scale markets.
- Paul Johnson argues the business is harder and investors must decide whether to chase relative outperformance or deliver consistent long-term returns.
Absolute Return Versus Relative Performance
- Fixating on beating the index warps investing into a game of relative performance and short-termism.
- Graham focused on absolute returns and minimizing big losses to preserve long-term compounding.
AI Excels At Documents, Not Nuance
- AI speeds document processing but mainly captures patterns, not true nuance beyond texts.
- Paul separates document-based information from the vast non-document knowledge where AI currently lacks access.
