3 Ways Value Investing Must Evolve, According to Bruce Greenwald
Bruce Greenwald argues value investing needs industry specialization and a returns-based framework—not naive DCFs.
Learn how to quantify moats, assess management, and model franchise fade.
– Why specialization matters now and how industry structure changes valuation
– How to decompose expected returns: cash return, reinvestment return, organic growth, minus fade
– A practical moat formula: minimum sustainable share divided by share stability
– What to measure in management and capital allocation (distribution history, reinvestment returns)
– How to model franchise ‘fade’ with explicit fade rates and the rule of 72
– Why AI favors specialized service businesses and the practical advice: specialize or stick with index funds
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