Madrid's Value Investors Outperform Market with Traditional Strategies
Madrid has emerged as Europe's value investing hub, posting market-beating returns against growth equities. Disciples of Warren Buffett, led by Francisco García Paramés, have demonstrated that patience and balance sheet scrutiny still yield exceptional dividends in modern markets.
The Spanish asset manager is dubbed the 'Spanish Warren Buffett' for his rigorous adherence to intrinsic valuation principles pioneered by Benjamin Graham and perfected by Buffett.
Paramés' firm, Cobas Asset Management, has achieved a 15.7% cumulative annual return historically through its focus on undervalued European industrial, energy, and financial legacy companies that competitors ignored.
The success of the Madrid cohort is distinct from American value investing due to its integration with the Austrian School of Economics. Paramés blends Buffett's corporate analysis with Austrian macroeconomic theory, focusing on business cycles, capital misallocation, and fiat currency manipulation by central banks.