Why should we risk investing at high valuations when we know that the result will be poor on average? Some of you may detect a paradox here. Unlike LSV Asset Management, which relies on sophisticated quantitative analysis, we do in-depth qualitative research on industries and businesses. As a result, we know a lot about our portfolio companies and their industries. Given that we have an informed view of them, should we not be willing to pay up when the opportunity arises? No. Why? Because I have more respect for the convergence theme with respect to valuation and potential returns than my
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