John Rogers

John Rogers: ‘Cheap Orphan’ Stocks Appear During High Volatility Markets

Here’s a great interview with John Rogers of Ariel Investments speaking with Business Insider. During the interview Rogers shares some great insights into how ‘Cheap Orphan’ stocks appear in high volatility environments, saying:

Q4 hedge fund letters, conference, scoops etc

We try to make volatility our friend. And when we see stocks that are gapping down on maybe where there’s no fundamental change in the long-term economic outlook of that business. Well that creates an opportunity. I think that’s an important thing. So volatility should be something that helps you. On the other hand when stocks spike higher and maybe get overpriced that can be an opportunity for us to trim. Take some profits and move into cheaper companies.

So volatility doesn’t scare us and we think that in this environment where everyone’s been in this flight to safety, More and more investment communities have gotten more and more conservative, so they’re moving money to the safe parts of the marketplace. That means the stocks that are left out can be truly orphaned and be really cheap. So we’re trying to find those ‘cheap orphans’ in this type of environment.

(Source: YouTube)

For more articles like this, check out our recent articles here.

Article by The Acquirer’s Multiple

Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Are you an intelligent investor?

ValueWalkPremium is a website and newsletter for smart investors like yourself. We focus on the latest hedge fund industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers