Heartland Advisors

Heartland's 10 Principles of Value Investing™


Heartland is a value equity boutique.  We’ve employed the 10 Principles of Value Investing™ since our founding in 1984. 

We’re bottoms up stock pickers. That means we analyze businesses based on their merits and their prices.

The process is really both quantitative and qualitative.

We do quantitative work of crunching numbers to determine if we are buying a financially secure business, and if we are getting it at a discounted price.

Our valuation measures are things such as:
•    How much are we paying for every dollar of earnings?
•    What's the price relative to the combined value of their assets, or book value?
•    How much are we paying for their free cash flow? 

The most important thing is not looking at every metrics in all cases; but to apply the right metric depending on the business, or most relevant metric. So for example, it might be a really good idea to use book value when analyzing a bank. However, that might not be the best metric when looking at a tech company.

From a qualitative perspective, it’s not enough to just buy something cheap. 

The qualitative is designed to help us make sure we’re finding good businesses with good business strategies. What is the true quality of the business? So, things such as:
•    Do we believe in the management team? 
•    Do they have an effective business strategy? 
•    They're asking us to buy their stock; are they buying their stock? 

Stock picking is our primary focus. We have used our consistent, time tested 10 Principles™ to analyze businesses for over 40 years.


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Past performance does not guarantee future results.

The statements and opinions expressed in the articles or appearances are those of the presenter. Any discussion of investments and investment strategies represents the presenters' views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. Any forecasts may not prove to be true.

Sector and Industry classifications are sourced from GICS®.The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and S&P Global Market Intelligence (“S&P”).  Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose.  The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.

Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market.

Heartland’s investing glossary provides definitions for several terms used on this page.

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