Mickey Morrissey: Value vs price debate needs more nuance

Different beasts

clock • 3 min read

Mickey Morrissey explores the loaded value vs price debate and distills the argument into five key points...

The discretionary fund management industry is still caught up in a tussle over value versus price. There are evangelists on both sides: those that argue that cheapness should be the main criteria for investment selection and those that argue that it is worth paying any price for quality. The reality, in our view, is more nuanced. It is perhaps easy to understand the focus on price. It is tangible, readily understood and measured. High costs unquestionably act as a drag on long-term returns. ‘Value', by contrast, is a more complex and subjective judgement. It involves an assessment of ...

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