Blind contrarianism fails in a disruptive economy
The guest argued that being a contrarian is no longer sufficient for value investing because technological disruption causes failing business models to collapse faster than in the past.
The argument
In Ben Graham's era, cheap companies often recovered because downturns were purely cyclical. Today, technological disruption means cheap companies are frequently 'melting ice cubes' under secular attack from competitors like Amazon, requiring deep qualitative judgment alongside a contrarian instinct.
Hear it yourself
"Our guest today is not only one of the most successful and visible practitioners of value investing, he's also made major contributions to the field through his writing and commentary, including directly to the Columbia Business School community."
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