That is good news for investors, especially with the stock market at record levels and valuations.

If you can invest at very low valuations, returns could be even more meaningful.

For example, they say, it is unclear how the bank arrived at specific valuations, based on the information that was publicly available.

They came at good valuations, and operating results have been very good.

As a result, smaller-company stocks are at or near historically low valuations.

"You've got stocks that are pretty beaten up, and from a long-term point of view, attractive at current valuations," he said.

Buying companies at attractive valuations, then waiting for their rebound is the core of his approach.

This outsized performance has also put stocks at valuations never seen before.

Whole areas of property will be lumped into bands with no attempt at individual valuations.

The problem, he said, is that people "have given up on looking at valuations."