Lead-Lag Report: Navigating Value Investing and the Energy Transition with Vitaliy Katsenelson

After years of underperformance, investors have started to see a higher interest in the energy market. The rise of green energy and electric vehicles saw an explosion in investor interest in recent years.

However, that trend has started to wane. It now seems likely that a fully electric motor vehicle fleet is out of reach. And that shifting a more significant percentage of vehicle sales to EVs will also take considerable time.

That could mean that oil companies are here to stay. And that they may make great investments. That’s especially true for producers that have the lowest production costs. Quality leadership can also play a role there.

Plus, since the adoption of electric vehicles will likely take longer than expected, some industries are likely to have poorer prospective returns in the years ahead. Consequently, they may not be great investments. At least until they’re priced too fearfully by the market.

What’s happening in the energy market is a microcosm for investors as a whole. Looking at the shares of a company as a fraction of a business marks a key tenant of value investing.

Ideally, a company can be both a good value in current terms, but also have some growth qualities ahead of it.

To listen to the full interview, click here.