Market dynamics – the case for value remains
In the world of haute couture, a famous designer once quipped – “In a world full of trends, I want to remain a classic”.
At Investors Mutual we would rephrase it as: “In a world full of trends, we want to remain a true-to-label value investor”.
The past 18 months has been a challenging and at times a frustrating environment for value investors. At IML we pride ourselves on our strict adherence to the IML investment mantra which has defined our approach to investing for the past 20 years – through all market cycles. That is to buy and own companies with a competitive advantage, with recurring earnings, run by capable management, that can grow, at a reasonable price.
This can be neatly described as an investment style of Value with a strong focus on Quality. However, over the past 18 months this proven approach has significantly lagged the styles of Growth and Momentum based investing.