Stories
Value Investors Adapt to AI Stock Market: Redefining Strategies for Tech Growth
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CNBC TV18•24-09-2026, 06:33
Value Investors Adapt to AI Stock Market: Redefining Strategies for Tech Growth
- •Value investor Chris Grisanti successfully integrated tech companies like Dell Technologies, Microsoft, and Amazon into his portfolio, challenging traditional value investing norms.
- •Grisanti's MAI Focused Equity Portfolio, which includes AI-driven stocks, has outperformed the market and the Russell 1000 Value index.
- •The market's concentration in mega-cap tech firms, driven by AI, has led to a re-evaluation of traditional value principles, with major indexes now heavily tilted towards tech.
- •Morningstar analysts note that market concentration is causing long-standing funds, like Vanguard Dividend Growth and JPMorgan Equity Income, to relax their investment disciplines.
- •Despite challenges, AI is creating new opportunities for value investors, allowing them to find value in previously overlooked areas and perform well alongside growth stocks.
Key Questions Answered
Some value investors are redefining their approach by embracing technology stocks that trade at low valuations or cheap earnings multiples, such as Dell Technologies and Amazon, rather than strictly avoiding future growth promises.
Morningstar downgraded the fund's management and investment discipline rating to average because managers relaxed long-standing rules requiring portfolio stocks to consistently pay and grow dividends.
Managers at the fund initially relaxed the requirement that every holding yield 2% or more and eventually dropped the dividend requirement altogether following Amazon's addition to the Russell 1000 Value ETF.
