Roger Ibbotson on the Price of Popularity

People tend to pay more for brand name consumer products than generics–and stocks are no different, says Yale professor Roger Ibbotson. This according to an article in CFA Institute. “Popular stuff has higher valuations but lower expected returns,” he said during a talk at the CFA Institute Annual Conference, citing the example of how Bayer aspirin attracts a significant consumer base even though it is more expensive than the generic version (that delivers the same… Read More