The long period of low interest rates punished companies who were succeeding by traditional measures

Transcript

Chris Davis: What was penalized during this period of time, at least, and I want to be very clear here, what we mean is penalized on a relative basis because if you look at our own portfolio, I mean we compounded it nine and half or 10% over this decade. But on a relative basis, the attributes that we focus on really were penalized. What do I mean by that? Conservative balance sheets. Companies reliant on interest income. I gave you the example of the shocking difference in the value of float, the spread compression of banks and insurers, we love having companies where margins have been relatively depressed because they are accelerating in this environment when other companies may be facing margin headwinds. The valuation of current versus future cashflow, that's right in the center of our entire investment discipline, and of course companies that have expense and return discipline, so in a sense, exactly the sorts of attributes that we look for in companies was penalized during that period.

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