The World According To Eveillard

Ask yourself a simple question, Jean-Marie Eveillard says. “If Warren Buffett is the second-richest man in the world, why aren’t there more professional value investors?”

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An intriguing question indeed. “The answer is purely psychological,” he argues. “If you are a value investor, every now and then you lag, or experience what consultants call tracking error. It can be very painful. To be a value investor, you have to be willing to suffer pain. Bill Ruane of Sequoia once said he thought only 5% of professional investors were value investors.”