Investors Value Investing in the Age of Intangibles Two top managers take stock of the industry and the opportunities. Undiscovered Manager 54 A Healthy Blend Sector Rap 57 Changing Playbook User Profile 60 Navigating Newfound Financial Success Tony Thomas MORNINGSTAR CONVERSATION What's the state of value investing? It's a perennial question, but it has gained new interest after the death of famed value investor Charlie Munger and the renewed dominance of growth investing over the past year. I spoke with the chief investment officers of two shops that exemplify the best of value investing today: David Hoeft of Dodge & Cox and Bill Nygren of Harris Associates. The conclusion: Value investing is alive and well. Hoeft and Nygren noted where they dare to differ from Munger and how they've evolved as value investors. They also mused on the state of active management and the future of mutual funds. Our conversation took place on Feb. 28. It has been edited for length and clarity. Tony Thomas: Let's start with this Charlie Munger comment from the 2023 Berkshire shareholder meeting: " I think value investors are going to have a harder time now that there are so many of them competing for a diminished bunch of opportunities. My advice to value investors is to get used to making less. " Do you agree? David Hoeft, chief investment officer and investment committee member at Dodge & Cox. William C. Nygren, partner, chief investment officer, and portfolio manager at Harris Associates. 48 Morningstar Q2 2024