UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFThump Big gold star, 5000 posts Old School Fool Ticker Guide Home Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1045  
Subject: Re: Value stocks long overdue Date: 11/2/2012 9:13 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Value stocks have been hands-down winners over the long term

This, to my thinking, is pure drivel. Not only do a disagree with the contention, but you'd have a hard time defining what exactly a "value" stock is. It's very open to interpretation. The fact is that any stock could be considered on a valuation thesis, but that doesn't define the business. I purchased AAPL for value, yet few would consider it a "value" stock. At the heart of even the most admired "growth" stocks is an expectation of future value. If the price isn't reflective of that growth potential, then it is reasonable to consider it for value.

There's a tendency in the investment community to attach a label to everything. I suppose the closest one could come to defining a value stock would be to start with ruling out potential for growth. If it's not growth, then it must be value (or income). Why else would you invest in it? The reality is that as a business growth slows, you look for another angle to base your investment thesis around.

It's somewhat more unusual, but stocks typically considered in this category can significantly retool their business and become a growth opportunity. Before the iPod, few considered AAPL for growth. Little more than a decade later it bears the mantle of largest market cap on the planet. That doesn't preclude it from being a value play for some investors.

Doug
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement