ETF Specialist

Value Investors Are Vexed

Ben Johnson, CFA

A version of this article appeared in the March 2019 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website 

The concept of value investing dates back at least as far as the 1920s, when Benjamin Graham and David Dodd first began teaching finance at Columbia University. The fundamental principles of value investing were later enshrined in the duo’s classic “Security Analysis,” first published in 1934.[1] The idea is painfully simple: Buy securities at prices below their intrinsic value and wait patiently for their market price to reflect their true worth. Or as my grandfather used to tell me, “Investing is simple, buy ‘em cheap and sell ‘em dear. Did I mention that it’s not easy? Good luck!”

Ben Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.