Welcome podcast listeners. We have a fantastic episode for you today.

Last year when we published the Best Investment Writing

Volume 2, we offered authors the opportunity to record an audio version of their

chapter to be released as a segment of the podcast and listeners loved it. This year we're bringing you

the entire volume of the best investment writing volume 3 in podcast format.

You'll hear from some of the most respected money managers and

investment researchers all over the world. Enough for me. Let's get to our guests and

let them take over this special episode.

Hi, this is Jack Forehand. I'm the C I O of validity capital management.

You can find out more about us at validityvalidea capital.com.

You can find my articles at blog dot validity.com. I'm going to read a piece titled the

case against value stocks. This is a piece I wrote in early 2019 as a way to

challenge my own thinking about value investing

and whether it will continue to work in the future like it has in the past.

So here it is, my case against value stocks.

Confirmation bias is one of the biggest problems in investing.

We all have a set of core beliefs and we tend to surround ourselves with people who also believe them

and focus on information that validates them. For me, one of those things is that value stocks will beat the market over time. There is no shortage of data to support value.

The academic research shows that it has worked historically, and the work of practitioners

like AQR, research affiliates, and O'Shaughnessy Asset Management does the same.

But there is a danger in following only the people and data who support what you believe.

It can blind you to the other side of the argument, especially when your beliefs are strongly

...