Intangibles of Value Investing

Bill Nygren of Harris Associates, on how tangible book value may no longer be a good indicator of a company’s potential value.

  • Contrary to many investment managers, Harris Associates believes that value and growth investing are not really opposite approaches.
  • Company balance sheets are not what they used to be: the tie between book value and potential economic value has been broken.
  • Many investors still follow fads, get emotional, and overact – Harris Associates believes the tenets of value investing have not changed.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions.

Value investing carries the risk that a security can continue to be undervalued by the market for long periods of time.