Great video of a roundtable featuring John Keeley Jr., Rob Bartolo, Audrey Kaplan, and Bob Olstein over at SmartMoney.
http://www.smartmoney.com/mag/index.cfm?story=january2008-roundtable&nav=RSS20
I love how Keeley speaks up about how "growth" is just a component of "value".
If you don't want to watch the video, here are some excerpts of what Keeley said:
- "I don't know anybody here who would pick a physician by height, and I don't know why anybody would pick a company by its size"
- "Growth is a component of value... I give a lot of speeches and the audiences ask if I'm a value fund. I say yes, but what are the others? Are they over-valued funds?"
- "A value fund will value a growth company, and there's nothing wrong with paying 30 times earnings for a company, if in fact it merits what it's going to earn over the time [considered]"
- "There's nothing wrong with buying a company that doesn't grow. [If]you get a company that doesn't grow, and you get a company that gets a 12% free cash flow yield every year and they go back and buy their stock, you have a "growth" company!"
-"I find it humorous that a concept that was supposed to be DEscriptive has become PREscriptive ... These terms ("growth" and "value") have been bandied about on Wall Street to such a degree that people us them as something prescriptive, and it has nothing to do with how [a company] is going to perform or whether or not [a company] is going to perform, or whether you buy a small company or a large company - you gotta buy the right company, at the right price."
http://www.smartmoney.com/mag/index.cfm?story=january2008-roundtable&nav=RSS20
I love how Keeley speaks up about how "growth" is just a component of "value".
If you don't want to watch the video, here are some excerpts of what Keeley said:
- "I don't know anybody here who would pick a physician by height, and I don't know why anybody would pick a company by its size"
- "Growth is a component of value... I give a lot of speeches and the audiences ask if I'm a value fund. I say yes, but what are the others? Are they over-valued funds?"
- "A value fund will value a growth company, and there's nothing wrong with paying 30 times earnings for a company, if in fact it merits what it's going to earn over the time [considered]"
- "There's nothing wrong with buying a company that doesn't grow. [If]you get a company that doesn't grow, and you get a company that gets a 12% free cash flow yield every year and they go back and buy their stock, you have a "growth" company!"
-"I find it humorous that a concept that was supposed to be DEscriptive has become PREscriptive ... These terms ("growth" and "value") have been bandied about on Wall Street to such a degree that people us them as something prescriptive, and it has nothing to do with how [a company] is going to perform or whether or not [a company] is going to perform, or whether you buy a small company or a large company - you gotta buy the right company, at the right price."
