Image Credit: F. Martin Ramin
Pop quiz: Name the giant store whose customers scoff at whatever goes on sale, but flock to buy whatever costs the most.
It isn’t a supermarket. It’s the stock market — especially over the past decade, when value stocks have moldered in the bargain bin. Such companies, trading at low prices relative to their earnings, net assets or other measures, have underperformed pricier growth stocks by one of the longest and widest margins on record….
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
“Reports of Value’s Death May Be Greatly Exaggerated” (Research Affiliates)
“Volatility Lessons” (Eugene F. Fama and Kenneth R. French)
“Factors from Scratch” (Jesse Livermore et al.)
“How Inflation Makes the ‘Value’ Factor a Sector Bet” (Lawrence Hamtil)