It seems he doesn’t get it. Value Investing is not about a quarter or a year.
Faber talks about financials, value investing, Freddie (FRE) and Fannie (FNM).
If you are a value investor you are buying the unwanted and unloved. That by itself means that your initial investment, unless you happen to perfectly pick the bottom will sink or flat-line for a period, especially in the current economic state.
The hand-wringing that is going on now it just not warranted. Look out a year, that is what the true value investor is doing.
Disclosure (“none” means no position):None
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One reply on “Faber on Value Investing”
“Warren Buffett once wrote that the concept of value investing is like an inoculation- — it either takes or it doesn’t — and when you explain to somebody what it is and how it works and why it works and show them the returns, either they get it or they don’t. Ultimately, it needs to fit your character. If you have a need for action, if you want to be involved in the new and exciting technological breakthroughs of our time, that’s great, but you’re not a value investor and you shouldn’t be one. If you are predisposed to be patient and disciplined, and you psychologically like the idea of buying bargains, then you’re likely to be good at it.” – Seth Klarman (Alpha Interview)
I’m just focused on how I’m playing the game, Todd.