Money Life with Chuck Jaffe | June 17, 2019
Charlie discusses value versus growth, and how patient investing takes advantage of stock market inefficiencies.
This is a replay of a broadcast with Charles Bobrinskoy that occurred on segment of Money Life with Chuck Jaffe’s “Market Call” on June 17, 2019. Mr. Bobrinskoy candidly discusses his viewpoints of market conditions and certain specific companies. The information contained in the broadcast is not guaranteed as to its accuracy or completeness. It should not be considered investment advice. The opinions expressed in this segment were current at the time of interview, but are subject to change. The information provided in this replay 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.
Ariel Focus Fund is a non-diversified fund and therefore may be subject to greater volatility than a more diversified investment. Investing in small- and mid-cap stocks is more risky and volatile than investing in large-cap stocks. Investing in equity stocks is risky and subject to the volatility of the markets. The intrinsic value of the stocks in which Ariel Focus Fund invests may never be recognized by the broader market. Past performance does not guarantee future results.
A growth investment strategy seeks stocks that are deemed to have superior growth potential. Growth stocks offer an established track record and are perceived to be less risky than value stocks. A value investment strategy seeks undervalued stocks that show a strong potential for growth. The intrinsic value of the stocks in which a value strategy invests may be based on incorrect assumptions or estimations, may be affected by declining fundamentals or external forces, and may never be recognized by the broader market.
An actively managed portfolio is more risky than a passively managed portfolio that replicates an index because it contains fewer stocks than its benchmark index. Indexes are unmanaged, and an investor cannot invest directly in an index. However, investors may invest in an index fund, which mimics the composition of an index. There are lower costs associated with index funds, as compared to actively managed funds.
Price-to-earnings ratio: A valuation ratio of a company’s share price to its per-share earnings. In general, a high "P/E ratio" suggests that investors are expecting higher earnings growth in the future compared to companies with lower P/E ratios. P/E ratio comparisons are more applicable for companies in the same industry, against the stock market in general or against the company's own historical P/E ratio.
Mr. Bobrinskoy discusses stocks which may be, or may have been, held in one or more of Ariel’s portfolios. 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 portfolios or of the portfolios themselves. For top ten holdings of Ariel’s mutual funds, click here.
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.