Thanks for the thoughtful reply and I agree.

What I would add is I think trying to find that undervalued growth story is only going to get harder going forward. I say that because it seems to me Buffett’s style tilt over the last few decades is what everyone wants to copy cat nowadays. That is buying a wonderful company at a fair price. That usually involves extrapolating some solid growth numbers over the medium to longer term. I typically see that as the marketing angle for most funds management firms. Rarely now do I see them marketing their strategy around say buying “cigar butts”.

The idea that you can find a good company that will grow earnings at a greater rate for 5-10 years than the market thinks seems to me to be an ultra competitive area. Hence multiple expansion and the risk of errors if you aren’t quite up to the talent of Buffett and those that are trying to emulate his more recent style.

That makes sense I think as this is what sells well if your are trying to start up a fund and manage hundreds of millions.

Many individual investors don’t have that problem so perhaps shouldn’t dismiss looking for buying average companies that are dirt cheap. They have the chance liquidity wise to sell them when necessary and move onto the next opportunity as they see fit. That is trickier for Buffett now of course as he manages a tad bit more money than say in the 50s / 60s! I see this area as far less fashionable right now and possibly offers the individual investor greater potential.

It depends a lot on your skill set though. Many are far better than me at identifying the future growth trends and may well do better with a more “growth” style. But as you point out be sure to find the value behind the investment proposition.