Hello everyone and welcome to Ed Barrens.

I'm Andy Surwer and welcome to our guest, Chris Davis, Chairman and Portfolio Manager of Davis Advisors.

Chris, great to see you.

Andy, I'm so glad to be here.

So Davis is known for being a value-oriented fund group.

How else would you describe the company?

Well, these categorizations sort of emerged really in the late 80s, early 90s,

with the so-called the Morning Star style boxes.

And it's been something we've sort of bridled against ever since

because it creates this distinction between growth and value.

And of course, the mathematics of it is that growth is a component of value.

A company that grows profitably is more valuable than one that doesn't grow.

And it's funny because in the world of bonds, there's no distinction if you buy a bond with a low coupon or a bond with a high coupon.

The idea is that the price adjust so that your yield to maturity, all things being equal, is the same.

Nobody says, I'm a growth bond investor or I'm a value bond investor because I focus a lot

on the current coupon versus the discounted present value.

So this is a distinction we bridle against.

I think if I'm forced to wear a label, I prefer the label of value because it makes clear that we have a price

discipline at the heart of what we do and that buying things that we think are undervalued is the

core part of what we do. But when we get into the world of deep value investors, they sort of say,

well, how on earth could you have bought Amazon if you were a value investor?

And of course, we didn't use a different version of discounted present value for valuing Amazon versus valuing Wells Fargo.

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