Ahmed Mahar on Recalibrating for Today’s Investment Landscape

Value investing is an investing discipline in which the light bulb either goes off or it doesn’t. Having been the primary reason for my decision to venture into the asset management industry in 2012, I viewed this as a full-circle opportunity to recalibrate with an investing style and philosophy that resonated deeply with me. Value investing has naturally evolved with time, with its main advocates demonstrating that change in recent decades. With Columbia Business School at the forefront of the value investing discipline, joining the program was an easy decision, particularly in today's dynamic backdrop and given the shift in focus towards businesses more heavily weighted towards intangible assets.

The application of value investing in the modern era, where most new era businesses do not typically meet traditional value investing criteria has posed a problem for investors. The program offered insights into how many of the world's greatest investors have adapted to these changes. Specifically, it has required an alternative approach to valuation to account for accounting standards that have not kept pace with a change in the composition of assets of many of the world's most sustainable and high ROIC businesses. The program explicitly offers a simple, but effective valuation framework that overcomes these challenges, without compromising on the fundamental principles of value investing – namely the concept of a ‘margin of safety’.

It was an absolute pleasure learning from Professor Tano Santos. From the get-go, it was apparent that he was well prepared and immensely knowledgeable within his field through a sheer passion and dedication for his craft. The professor was able to succinctly articulate the historical context and evolution of the value investing discipline, to frame and subsequently address the challenges faced by the modern-day value investor. His teaching style was highly collaborative, and he welcomed questions and insights from the class; though I found his own perspective, breadth, and depth of knowledge so impressive, I was more than happy to listen to him rather than speak myself! He did an exemplary job in helping the students understand the course material, and I truly appreciated his multi-disciplinary approach when evaluating companies. I was particularly impressed with the manner in which he was able to conceptualize developments within a given industry and overlay them with the economic motives and incentives of the stakeholders interacting with a given company.

A valuation framework on its own is not enough to unearth high return investment opportunities in the public markets; instead, one must harmonise the disciplines of economics, valuation, and accounting to truly develop conviction in an investment case.

I would recommend the program to anyone with an interest in either public or private market investing, and who wishes to understand a modern day approach to investment evaluation.