Skip to main content
No. of Recommendations: 1
The trouble with "Value" is that it is usually an isolated concept When in fact value is primarily tied to what are the other possible uses of the investment money. If bonds yield next to nothing the value of most stocks goes up. Then there is the psychological factor, a glass of water has a lot more value when you are thirsty than when you aren't thirsty. So likely "Value" has different desirability in different markets. Also important is cost of capital, and most value companies have to pay a lot for it. Compared to software companies or Tesla. The stats used to pick "Value" come from SEC documents,and are readily available to all, as are the techniques used to determine the less expensive ones. No edge here.
The SP500 turns over faster and faster, corporate lifetimes are shorter,and unless it is a company like Coca Cola it is hard to be sure it will still be here and be profitable in 5 years , much less in 10 or 15 years
Every strategy has its time and place,and Value seems to work best near the end of a bear market. But other strategies work well at that time too,.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.