Value investing stock market strategy from top fund manager David Samra - Business Insider

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Fund manager David Samra has handily beaten the market over nearly 2 decades. He shares 4 simple criteria he looks for in each investment — and details 4 'obvious' places investors should be rushing towards today.

Below is a chart of the Artisan International Value Fund juxtaposed against comparable benchmarks. It shows outperformance of nearly 4 percentage points since inception. Samra has been at the helm of the fund the entire time."When I approach an equity, I'm trying to get something for nothing — something that the market is not willing to pay for," he said on "

To him, companies with those characteristics are more likely to be value traps — businesses that appears to be cheap but are poor investments due to ineffective business practices, incompetent management, high costs, etc. — rather than a winning position. "If we do our job correctly, at the end of this process, we have a portfolio of undervalued securities of good companies generating cash and management making good capital allocation decisions on a day-in and day-out basis," he said. "We think that's a powerful combination of those 4 variables:He added: "It's very hard to find those factors in combination."

 

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