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Focus on the Value of a Business, Not the Stock's Valuation
American Association of Individual Investors (AAII)
October 2016

Rupal Bhansali takes an in depth look at the distinction between a stock’s valuation and the value of its business.


Performance data quoted represents past performance and does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Click on the following links for performance for the most recent month-end for: Ariel International Fund and Ariel Global Fund.

This article was written by AAII Journal and is based on an interview with Ms. Rupal Bhansali in which she candidly discusses her investment strategies. These opinions are current as of the date of the article, but are subject to change. The information provided in the article does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.

Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, foreign currencies and taxes. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses and create more volatility. Investments in emerging markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. The intrinsic value of the stocks in which the Funds invest may never be recognized by the broader market. Attempting to purchase with a margin of safety on price cannot protect investors from the volatility associated with stocks, incorrect assumptions or estimations on our part, declining fundamentals or external forces.

Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Click on the following links for the expense ratio and standardized performance data current to the most recent quarter- and month-end periods for Ariel International Fund and Ariel Global Fund.

In this article, Rupal J. Bhansali discusses examples relating to Disney and BlackBerry. As of March 31, 2017, these stocks were not held in the Funds. Portfolio holdings are subject to change. The performance of any single portfolio holding is no indication of the performance of the other holdings of the Funds or of the Funds themselves.

Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800-292-7435 or click here. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC. Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation.

 
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