Using trailing twelve months earnings that are impacted by a recession is a mistake
Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.
What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?
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.