One of today’s big debates is whether share markets are falling out of love with so-called ‘growth’ stocks and falling back in love with ‘value’ stocks. It can be worth paying attention to broad shifts in sentiment, but I think there is little utility in trying to divide stocks into these two arbitrary categories. Instead, it is better to simply focus on investing at rational prices in extraordinary businesses that have bright prospects.
That’s certainly what we do each day at Montgomery. In this white paper, I discuss how the meaning of the word ‘value’ has evolved since the days of Benjamin Graham and the importance of assessing the long-term potential of any company you invest in.