What Would Ben Graham Do Now?: A New Value Investing Playbook for a Global Age

6. The World Is Biased

Investors need an arsenal of advantages if they are to operate successfully in a world of colliding markets and actors. Solid financing and expertise are important. As discussed, political access can be a strength. A third, less obvious, but increasingly important advantage is reputation.

In developed economies and with traditional value approaches, an investor’s reputation is certainly critical and helps one become an attractive buyer. In more uncertain and unstable environments, however, this “buyer of choice” effect becomes much more powerful. An investor with a strong reputation not only has preferential access to otherwise inaccessible deals, but also can often act as the solution to the very regulatory grayness, weak ...