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Value Investing and the Mis-measures of Modern Portfolio Theory by Bruce Greenwa


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Professor Bruce Greenwald makes a very astute observation that value investors have a narrative problem in just saying we buy cheap stuff.  In conjunction with Professor Aswath Damodaran's recent presentation at the CFA Equity Valuation conference, he gave a lecture on this very point.


Aswath Damodaran: Numbers and Narratives (starts around the 12m mark) - link to Part I below:






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Dear beerbaron

Greenwald argument is that the five forces are many and what is relvant in real life is the the presensse of entery barriers.Without entery barriers the other forces are not as important in explnaing the above average profitability.I have heared this from greenwald  befor and wondered how he came to this conclusion.As result ,i kept  searching  and found a strategy book authord by a harvard faculty  citing emprical research empahsising entery barrier as the most relvant force among porter five forces.i guess this explain greenwald focus on entery barriers.

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