Jim Cullen of Schafer Cullen Capital Management - Value Investing: A Time-Tested Strategy for Long-Term Success

Orion's The Weighing Machine

Time and again, investors are reminded of the turbulent nature of financial markets. Attempting to predict short-term market movements can lead to a myriad of pitfalls and missed opportunities. Wise investors recognize that true wealth creation lies in the ability to weather market downturns and emerge stronger on the other side.

In this episode, Rusty Vanneman and Robyn Murray talk with Jim Cullen, Chairman and CEO at Schafer Cullen Capital Management. Jim founded the firm in 1983 and is responsible for overseeing Schafer Cullen Capital Management and has served as the CEO and Co-Portfolio Manager on all of the firm's strategies. Jim has also been responsible for overseeing the affiliated firm, Cullen Capital Management LLC, since its formation in 2000. His experience in the investment business spans over 60 years.

A leading value manager for decades, Jim talks about how the markets have changed over the last 60 years. He also discusses long-term value investing and how it makes sense for investors, the importance of dividends and dividend growth, and why market timing is the root of all evil for most investors.

Key Takeaways

• [03:06] - What the market looked like 60 years ago.
• [06:15] - How the 1970 bear market impacted Jim's investment philosophy.
• [11:20] - The inspiration behind Jim's book, “The Case for Long-Term Value Investing.”
• [15:06] - A look back at Schafer Cullen Capital Management's origins.
• [16:23] - Why Schafer Cullen Capital Management includes dividend growth in its value investing.
• [17:17] - How Jim tackles market timing with investors.
• [19:02] - Jim's approach to stock selection.
• [20:51] - What happens when the market is concentrated?
• [22:14] - What Jim has to say about financials.
• [23:59] - What Jim has to say to young people looking to invest in today's market.
• [25:23] - Jim's thoughts on how AI might affect the investment industry.
• [27:24] - Jim's favorite investment idea.
• [29:25] - The people Jim is thankful for professionally.
• [31:24] - Content recommendations from Jim.

Quotes

[10:00] - "Every five-year period has some tough periods, recessions, bear markets, and all the negative stuff. But the five-year time horizon bailed you out on all of them." ~ Jim Cullen

[17:40] - "Market timing is the root of all evil for most investors. It's the killer of long-term performance." ~ Jim Cullen

[18:04] - "Don't try to time the market because you make all your money when you come out of that recession. That's the biggest part of all the gains in the market over time." ~ Jim Cullen

Links

• Jim Cullen on LinkedIn
• Cullen Funds
• Good Vibrations by The Beach Boys
• Merrill Lynch
• Mid-Year Note the Danger Zone A Time for Value
• The Case for Long-Term Value Investing
• J.P. Morgan
• Jamie Dimon
• Jason Zweig
• Goodbye Mickey Mouse

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure

Advertisement supplied by Schaeffer Cullen Capital Management. Schaeffer Cullen Capital Management and OPS are not affiliated companies and the advertisement is not a recommendation or endorsement by Orion Portfolio Solutions, LLC for any of the services referenced or provided.

2044-OPS-7/28/2023