Sarah Ketterer

One general defense against value traps is to by and large avoid product-cycle businesses. You can have faith that Nokia gets its act together in smartphones, or that Motorola returns to prominence in handsets, or that the latest device from Nintendo is a big hit, but we think that's very tricky. For a company caught [...]

Sarah Ketterer

Typical investor behavior is to want to own things coincidental to success, so there are plenty of investors out there who will bail at any sign of disappointment. By extending our time horizon out three to five years, we’re trying to take advantage of bargains that result when negative news and twitchy investors drive stock [...]

Sarah Ketterer

We're classic value investors in the sense that when share prices are low, we think risk is low as well. Most people can understand that in theory but don't believe it in practice and even act as if it's heresy. It's actually when prices are rising and stocks are converging with our share-price targets that [...]