By Jack Forehand, CFA, CFP® (@practicalquant) — Value traps are the bane of a value investor’s existence. We build our strategies around buying cheap companies and hoping the market will eventually see things…
Tag: Negative Screens
The Challenges of Avoiding Value Traps – And Some Criteria That Might Help
By Jack Forehand, CFA, CFP® (@practicalquant) — I wrote an article a few weeks back that looked at how much of the outperformance of value stocks since the bottom in March of…
Excess Returns, Episode 5: The Double Edged Sword of Avoiding Value Traps
Many value stocks are cheap because they deserve to be. Some of them no longer have sustainable businesses, and as a result their current discounted multiple will look really expensive…