Value vs. Growth : Don’t look back!

Naam spreker: Lodewijk van der Kroft, Partner

Ronde 2: 10.30 – 11.15

 Categorizing companies in value or growth buckets has serious drawbacks as their underlying business are dynamic and not static. The turnover in, and even the overlap between, value and growth indices is higher than you might think. There are plenty of examples of companies that rose to fame, then experienced lower growth and in some cases even serious decline.

All companies go thru lifecycles and some companies are better than others at managing and possibly extending their life. Much depends on a company’s culture. And there is no Bloomberg function for corporate culture!

To assess the qualities of a franchise an active manager can’t rely on the rear-view mirror but has to pursue a view on future developments that will affect the profitability of companies. So don’t invest thru the rear-view mirror. In our opinion, investing should be a humbling exercise in a forward-looking activity.

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