Could it be that the rules for valuing stocks have changed? That earnings and cash flow aren’t what determine a stock’s fundamental value? I don’t think so. But every value investor has to be wondering what in the wide world of investing is going on for value investing to be underperforming growth stocks for so […]
Value Investing
The 2-Minute Thought: Value Investing Isn’t Dead
Historically, value investing has outperformed. It hasn’t done so year in and year out – and it can certainly underperform over shorter periods of time. But over longer multi-year periods, it has outperformed. The evidence in its favor holds across markets, countries, and eras. Yet value investing has had a terrible period of underperformance the […]
In Defense of Buying Bargains
Bargains can be a wonderful thing. People love getting a $100 pair of jeans for $50 — or a bottle of wine or anything else likewise discounted. The exception to this has always been stocks. When a coveted $40 stock goes to $20, it suddenly gets shunned, and that’s been especially true lately. Cheap stocks […]
