5 Value Stocks the Fund Managers Own

THE VALUE INVESTOR: We have cut out the middle man and reveal the equities the value fund managers are holding in their portfolios for long-term growth

Emma Wall 29 May, 2014 | 10:40AM

Value investing is the art of buying companies for less than their intrinsic value. It is Warren Buffet’s favoured method of stock selection – and when done successfully can guarantee double digit returns over decades.

“I suppose all fund managers say that buy stocks that are worth more than they pay for them,” said Nick Kirrage, manager of the Morningstar Analyst Silver Rated Schroder Recovery fund.

“But with value investing, we have a more kind of disciplined way of identifying those companies, of finding businesses that trade explicitly low valuations, low P/Es, low cyclically adjusted P/Es, valuation metrics, and we fish in particular ponds of cheap stocks.”

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BP PLC301.25 GBP0.00
GlaxoSmithKline PLC1,410.40 GBP0.00
Lloyds Banking Group PLC36.00 GBP0.00
NatWest Group PLC157.30 GBP0.00
Unilever PLC4,381.00 GBP0.00

About Author

Emma Wall  is former Senior International Editor for Morningstar

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