Bloomberg Talks Ariel Chairman & Co-CEO John Rogers Talks Small Value Companies
Oct 11, 2025
John Rogers, Chairman, Co-CEO, and CIO of Ariel Investments, shares his insights on small value companies, which he believes are now greatly undervalued and ripe for investment. He discusses the shift in market sentiment, highlighting the significance of tariffs on mid-cap investors. The conversation touches on the rising demand for live experiences post-COVID and evaluates Paramount's growth amidst streaming competition. Rogers also predicts a surge in M&A activity, citing a friendlier regulatory environment as a catalyst for strategic deals.
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Small-Value Stocks Are Orphaned Opportunities
- Small-value companies have been ignored and present fertile idea flow for research and investment.
- John Rogers says mundane businesses look orphaned compared with giant growth names, creating opportunity.
Experience Economy Is Staying Strong
- Post-COVID consumer preference has shifted strongly toward experiences over possessions.
- John Rogers notes momentum is holding and immersive venues like the Sphere benefit from that trend.
Paramount Is Valuable But Growth Is Uncertain
- Paramount holds valuable studio and content assets that seem undervalued in the stock.
- Rogers says growth is uncertain because Paramount must compete with Netflix, Apple, and Amazon.