When we dig into it, it may not perform as well as we expect; it may carry more risks than we expect; and, there is a better way.
Sometimes the investment climate calls for a somewhat unbalanced portfolio.
This approach has worked
What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?
A high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.
Today’s FAAMGNs, that is today’s ‘vital few’, will not be the ‘vital few’ 20 years from now
Today’s investor cannot tell what percentage gain in earnings, dividends and prices he may expect in the next ten years
The various Principles of Operation that follow are not things I have dreamed up. They are frequently quotes or exact formulations or wording from Benjamin Graham, Warren Buffett, John Templeton, Philip Fisher, Peter Lynch, John Neff, Maynard Keynes and others.
Is buying with a margin of safety really the closet practice of market timing?
There is a lot of talk currently about the underperformance of value stocks compared with growth stocks over the last fifteen years. In fact, value investing has performed well against all other styles. This seeming contradiction comes from the fact that value investing and investing in value stocks are not the same thing.