Barron's Live Talking Stocks with John W. Rogers, Jr.
14 snips
Jan 12, 2026 
John W. Rogers, Jr., founder and chief investment officer of Ariel Investments, shares his insights on small- and mid-cap investing. He highlights the distortions caused by indexing and advocates for focusing on undervalued stocks. Rogers also discusses specific investment picks like Middleby and Prestige Consumer Healthcare, citing their strong management and growth potential. He predicts a market rotation where small caps may thrive, especially in 2026, and emphasizes the importance of aligning management goals with shareholder interests.
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Neglected Small Caps Offer Bargains
- John Rogers argues small- and mid-cap value stocks are deeply neglected and thus offer compelling bargains.
- He predicts large-cap growth faces multi-year challenges while small/mid value should outperform as funds rotate.
Indexing Distorts Market Breadth
- Indexing has concentrated return and distorted broad-market exposure toward a few mega-cap growth names.
- That concentration can lead to mispriced risk and an eventual unwind harming index investors.
Make Management And Moat Your Filter
- Prioritize management quality by meeting leaders and assessing honesty and capital-allocation discipline.
- Invest only in businesses inside your circle of competence with durable moats and strong balance sheets.
