Value investing requires patience through periods of underperformance: Jean-Marie Eveillard

Renowned investor Jean-Marie Eveillard emphasizes that value investing demands patience, discipline and a willingness to tolerate painful stretches of underperformance. He describes tracking error—the variance between a portfolio's returns and its benchmark—as an inevitable part of the value investing approach.

Eveillard argues that investors pursuing a value strategy must maintain focus on valuation and fundamentals despite shifting market preferences. Success in value investing, he suggests, hinges on accepting periods of lag and remaining committed to identifying intrinsic value over the long term.