Few good learning points on value investing (Bruce Greenwald)
Q&A: Bruce Greenwald, Professor & Investing Expert 'Value is in cheap, obscure and disappointing stocks' Jitendra Kumar Gupta / Mumbai April 26, 2011, 0:49 IST Bruce Greenwald is a professor at Columbia University’s Graduate School of Business and Director of Research at FirstEagle Funds. Called ‘a guru to Wall Street’s gurus’, he is a recognised authority on value investing. Edited excerpts from an interview with Jitendra Kumar Gupta : Many people focus on the revenue statement or earnings. How important is the balance sheet and what does one look for as a value investor? The balance sheet is more important than the income statement for value investors, since it provides more reliable valuation information, that does not depend on projecting the future. The exception to this rule is the case of franchise businesses, where long-run earnings depend on competitive advantages, not just assets. As a value investor what is the starting po...