Falling into a value trap is one of the biggest risks value investors face. Unfortunately, there is no set framework for analyzing and discovering traps or even a fixed description of what constitutes a value trap. If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value newsletter, Hidden Value Stocks However, according to Wall Street legend Joel Greenblatt, a value trap can be defined as a “low return” business or a company that is destroying value for shareholders. These businesses are often undervalued, and as a result, look attractive to value…
Joel Greenblatt: Avoiding Value Traps
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk