Wall Street Blind Spots… Old School Investing Still Works…

2026-03-06

Download

Jose Mayora, author of Wall Street's Blind Spots, a new book about the realities of value investing in a market dominated by mega-cap growth stocks, explains that true value investing is not about low P/E ratios but about buying businesses at a meaningful discount to intrinsic value. He emphasizes disciplined, bottom-up research, geographic and sector diversification, and concentrated portfolios to uncover overlooked opportunities. We also explore the psychological challenges of investing through crashes and euphoric markets, the tension between patience and...

Jose Mayora, author of Wall Street's Blind Spots, a new book about the realities of value investing in a market dominated by mega-cap growth stocks, explains that true value investing is not about low P/E ratios but about buying businesses at a meaningful discount to intrinsic value.

He emphasizes disciplined, bottom-up research, geographic and sector diversification, and concentrated portfolios to uncover overlooked opportunities. We also explore the psychological challenges of investing through crashes and euphoric markets, the tension between patience and performance when managing other people's money, and the risks of over-investment.

We discuss...

Jose Mayora shares his background in investment banking, economics, earning the CFA, and co-founding DeVita Valley Growth Fund with a disciplined value-oriented philosophy.
The discussion highlights how traditional value strategies have lagged during the dominance of mega-cap tech stocks, particularly the "Magnificent Seven," over the past decade.
Mayora emphasizes that avoiding high-multiple stocks purely on valuation optics can cause investors to miss strong businesses compounding at high rates.
The conversation underscores the importance of remaining impartial and avoiding confirmation bias from sell-side research, headlines, or popular narratives.
Mayora argues that concentrated portfolios of 10–16 positions are more realistic for true value investing, as finding dozens of genuine bargains in expensive markets is unlikely.
We examine how broad market crashes create opportunity because markets become indiscriminate, often punishing high-quality companies alongside weaker ones.
Historical examples like Google during the 2008–2009 crisis illustrate how strong businesses temporarily trade at compelling valuations during downturns.
The psychological challenge of buying low-quality "junk" stocks for sharper rebounds versus sticking with durable high-quality companies is debated.
They discuss how long recoveries—such as after the dot-com crash—can test investor patience even when valuations are compelling.
Mayora explains that maintaining close communication and philosophical alignment with investors helps navigate inevitable periods of underperformance.
They debate missed opportunities in large-cap tech and the difficulty of staying disciplined when high-momentum stocks dominate returns.