Investors often find themselves at a crossroads when deciding how to allocate their resources for optimal returns. But one of the timeless strategies that has captivated investors seeking sustainable growth and long-term success in finance and investment is value investing, a philosophy made famous by Benjamin Graham and later championed by his protégé Warren Buffett. Value investors, armed with a keen eye for bargain opportunities, endeavor to uncover the hidden gems amidst the market's ups and downs.

In this episode, Rusty and Robyn talk with Brian Ferguson, Senior Portfolio Manager at Newton Investment Management Group. Brian has been with BNY Mellon companies for over 26 years, specifically for the U.S. Dynamic Large Cap Value Fund (BNY Mellon Dynamic Value Fund). He joined Newton in September 2021, following the integration of Mellon Investments Corporation's equity and multi-asset capabilities into the Newton Investment Management Group.

With a value-based investment philosophy, Brian talks to Rusty and Robyn about value investing. He shares insights into how investors should allocate between value and growth and the future of active management. Brian also discusses other important value sectors, including energy and healthcare.

Key Takeaways

• [03:30] - Brian's career background and role at Newton Investment Management Group.
• [04:26] - What distinguishes Newton Investment Management Group as a firm?
• [07:11] - What is it like to work with John Neff?
• [08:49] - How value investing has evolved over time.
• [12:28] - Brian's rule of thumb for allocating between growth and value investing.
• [14:00] - Brian's thoughts on active management.
• [17:48] - How the energy sector has changed over the years.
• [23:27] - How the financial sector plays offense and defense across the different sectors.
• [28:22] - The opportunities in the healthcare industry.
• [32:01] - Brian's thoughts on how AI impacts the financial industry.
• [35:05] - Brian's favorite investment idea.
• [41:15] - How Brian maintains his physical and mental energy to perform at a high level.
• [42:28] - The people Brian is grateful for professionally.
• [46:12] - Brian's recommendation for content.

Quotes

[09:22] - "Being a student of the marketplace and the markets, if you look at a hundred years of history, values outperform, on average, two out of three years. And that speaks to the notion that it does matter what you're paying for something, and it's easier to outperform low expectations than high expectations." ~ Brian Ferguson

[13:47] - "The better way to allocate between value and growth investing is to get a great manager and team with a proven process and philosophy, do both styles, blend it together, and then periodically rebalance it." ~ Brian Ferguson

[16:41] - "The dispersions of results and outlooks on the things that drive intrinsic value, namely cash flow and earnings, have never been wider. And in my 30-year career as an equity investor, I've never seen it as wide as it is. And that is music to the ear of active managers." ~ Brian Ferguson

Links 

• Brian Ferguson on LinkedIn
• Newton Investment Management Group
• Doin' This by Luke Combs
• Wellington Management
• Vanguard
• Keith Howell
• J.P. Morgan
• Berkshire Hathaway
• The Lion Tracker's Guide to Life
• The Money Masters
• The New Money Masters

Connect with Us

• Meet Rusty Vanneman, Orion's Chief Investment Officer
• Check Out All of Orion's Podcasts
• Power Your Growth with Orion

2519-OPS-9/11/2023