Seneca's Elston: Why we are focusing on good value UK mid caps

Better growth expectations than large caps

I must warn readers upfront that we at Seneca are value investors, and are thus naturally sceptical about growth investing in its simplest form, namely buying the stocks of companies that exhibit the highest sales, assets, profits, growth, etc.

However, we are equally sceptical about simplistic value investing, namely buying stocks just because they have low price-to-equity, price-to-book, price-to-sales ratios, etc. The original 'value investing' framework set out in Benjamin Graham and David Dodd's 1934 classic Security Analysis was about so much more than simple valuation ratios. How could it not be with 725 pages?  In fact, although Graham and Dodd are considered the fathers of value investing, they never even used that term. For Graham and Dodd, what would later become known as 'value investing' was as much about the...