Inside Active by Bloomberg Intelligence T. Rowe Price’s White on Four-Pillar Investing
25 snips
Dec 10, 2025 In this discussion, Justin White, a portfolio manager at T. Rowe Price known for his innovative four-pillar investment framework, shares insights on market dynamics. He analyzes the fading momentum of earnings and prospects for high valuations. White emphasizes the significance of quality, estimate revisions, acceleration, and valuation in stock selection. He warns about the risks of overestimating monopoly profits and highlights potential long-term winners like Booking and Visa while cautioning against elevated AI-related valuations.
AI Snips
Chapters
Transcript
Episode notes
Four-Pillar Stock Selection
- Justin White uses a four-pillar framework to stack multiple reasons to own a stock: quality, positive estimate revisions, fundamental acceleration, and valuation.
- He treats the pillars as a body of evidence and gives recent extra weight to quality as market structure changed.
Buy And Sell By Pillar Scores
- Use the four pillars as a buy/sell discipline: buy when multiple pillars score well and sell when they don't.
- You don't need all four pillars; strong quality or revisions can justify a smaller overweight despite poor valuation.
Why He Passed On Smile Direct Club
- Justin passed on Smile Direct Club's IPO by comparing its adoption S-curve unfavorably to Netflix's low-friction model.
- He judged SDC's penetration targets as unrealistic given its higher friction and cost of adoption.