Ariel Investments' John Rogers on How You Can Still Win With Value Investing
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What is the overall premise of the interview with John Rogers on value investing?
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Hello, and welcome to another episode of the Odd Lots podcast. I'm Joe Weisenthal.
And I'm Traci Alloway.
Today, you're going to be listening to a special episode that we did recorded live on the beach in Huntington Beach, California.
That's right. We are back at the Future Proof Festival. It is a very special event that gathers a lot of investment professionals. to talk about markets and how they're actually investing through these very interesting times. And one of the most interesting investors out there, I think, has to be our guest for this episode.
Totally. So these days, I feel like when you talk to investors, when you talk to people about the market, it's very binary. It's like, what do you think about the Mag 7? What's your view
on
AI? What's your view on capex spending? What's your view on the Fed, et cetera? And you don't really hear many of those fashions, like good old-fashioned stock picking, security selection. And I miss that. I think it was interesting back in the days when there's sort of like Buffett and Graham Dodd style of investing. We're like, here's an interesting company. A lot of people don't know about it, but I found it. I like this stock. I like this company. And I think it's going to grow bigger. You just don't really get much of that discourse these days.
This also dovetails with my favorite ever style of analysis, which is just when an investor or an analyst just goes to one of the companies or locations
of
the potential investment and just observes how everything is working and talks to potential customers and things like that. I love that style of investment. And we are actually speaking to one of the most famous stock pickers of all time.
That's right. You're going to be hearing our interview with John Rogers. He's the founder and co-CEO of Ariel Investment Management. And he's very different. It's truly old school. It's all mid cap and small cap stocks. He's been running this mutual fund for decades now. And he's like this old school classic style stock picker. And you're gonna hear our conversation about how he goes out and finds companies and talks to management and tries to uncover these diamonds in the rough, so to speak.
So take a listen. As a reminder, this was recorded live on stage at Huntington Beach as part of the Future Proof Conference. You might hear some background noise. It was very windy that day. There was also a drone, which was an interesting experience, but we hope you enjoy it. Here is our conversation with John Rogers.
It's great to be here. Never been to an event like this before. I
know. It's such an extraordinary event. I don't even know what would be like an equivalent thing that anyone could have been to before, but very excited to be here. So in investing right now, you know, there's a couple big. themes that come up over and over again. There's the rise of passive investing in various flavors of that. There's just the incredible dominance over the last several years of the Mag7 and big tech and their momentum and the sector specific stuff. You are a stock picker. And you buy, you eschew that. You're not just one of these people riding the Mag 7 wave and you buy a lot of mid cap and small cap stocks that are in fields that maybe people don't think about.
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Chapters
8 chapters
1
What is the overall premise of the interview with John Rogers on value investing?
0:00–4:49
2
Why does John Rogers believe value investing still works despite the dominance of the Mag 7 and passive strategies?
4:49–11:16
3
How does Ariel Investments define and hunt for “orphan” small‑cap stocks that are overlooked by analysts?
11:16–16:59
4
What led Ariel Investments to invest in the Las Vegas Sphere and what was the due‑diligence process?
16:59–24:25
5
Why does Ariel hold a large position in Royal Caribbean and how did the cruise industry recover after COVID?
24:25–30:16
6
How does John Rogers view the current macro environment and its impact on his mid‑ and small‑cap portfolio?
30:16–35:26
7
What specific research techniques (site visits, management meetings, channel checks) does Ariel use to validate a stock’s moat?
35:26–41:50
8
What are John Rogers’s final thoughts on the future of security selection and the role of patient capital?
41:50–44:49
Speakers
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