…the market corrects those mispricings, he argued, value investing could see a comeback. “Price may be what you pay, in other words,” he wrote, “but value is what you get.”…
Search Results for: value
The Importance of Diversification
…asset classes is important, since they tend to behave differently: “This means that when the value of one type goes down, there’s a good chance that you’ll benefit from prices…
The Importance of the Sector Story
…lead to a different conclusion than the obvious one. The Underperformance of Value Value stocks have struggled in the past decade. There have been many explanations offered for that. One…
Expected Returns and the Enterprise Multiple
In a recent article for Advisor Perspectives, BAM Alliance director of research Larry Swedroe reports findings of a new study that show price-to-enterprise value (EM) as a more powerful predictor…
Excess Returns: Episode 9: The Benefits of a Value Composite
…of a value strategy. We talk about: Why a value composite can help limit risk and make a value strategy easier to follow Why all value metrics have their weaknesses…
Europe Gets a Lesson in Key-Person Risk
…of former star stock pickers like Neil Woodford. GAM reportedly lost nearly 40% of its assets and most of its market value since suspending Tim Haywood (who ran the firm’s…
Value Investing Headwinds
In an interview with Morningstar last November, International Value Advisors CIO and portfolio manager Charles de Vaulx outlines what he sees as headwinds for value investing. De Vaulx cites the…
The Elusive Definition of Risk
…all three of these questions. For example, value investors have been tested on both #2 and #3 over the past decade and many have found that they can’t handle as…
‘Hoodwinked’ Institutions Pushing Back on Private Equity
An article in Institutional Investor reports that institutions are questioning the value of internal rate of return (IRR), a widely-used measure of portfolio performance. According to Jos van Gisbergen, who…
Apple and Microsoft Won’t Continue to Dazzle Investors
…than for value. But when they get too carried away, then higher past returns will presage lower future returns.” The RA study found that although value companies are not unusually…