Barron's Live Confessions of a (Highly Successful) Value Investor
Mar 23, 2026
Chris Davis, chairman of Davis Advisors and third-generation leader of the firm, shares his value-investing perspective. He discusses why value lags in growth cycles and when it rebounds. He outlines market risks from de-globalization, higher rates, and AI. He explains which banks and companies like Tyson and Tokyo Marine fit value discipline and warns about liquidity and private credit risks.
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Assess Companies By Their Role In The AI Wave
- Evaluate companies by how they will use AI as users, enablers, winners, indifferent, or walking dead.
- Financials like Capital One, Wells Fargo, and J.P. Morgan can cut costs if they have scale, culture, and modern tech stacks.
Capital One As The Original Cloud Native Fintech
- Capital One is described as the original fintech that ran without branches until the mid-2000s and is fully on the cloud.
- Davis highlights founder-led continuity and a data-science culture yet a low 11–12x earnings multiple.
Buy Cyclicals When Price Reflects Depressed Earnings
- Buy cyclical or low-growth businesses only when price reflects depressed earnings and offers margin expansion potential.
- Davis uses Tyson as an example: diversified protein with depressed beef unit creating upside while trading at reasonable valuation.