Posted by on Apr 30, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Christophe Vorlet


By Jason Zweig | April 27, 2018 1:11 pm ET


Value investors haven’t been wandering in the wilderness for 40 years, but it’s starting to feel that way.

Over the past 10 years, the S&P 500 Value Index of companies selling at low prices relative to their earnings, revenues and net worth has returned an average of 7.1% annually. The S&P 500 Growth Index — stocks selling at high prices — has gained an average of 10.7%.

The longer-term picture is brighter for value-hunters: Over the course of many decades, cheap stocks have tended to do better, as you would expect from investments bought as bargains: From 1926 through the end of last year, value out-earned growth stocks by an average of 3.1 percentage points annually.


To read the rest of the column: 

The Wall Street Journal




For further reading:


Jason Zweig, Your Money and Your Brain

Jason Zweig, The Devil’s Financial Dictionary

Benjamin Graham, The Intelligent Investor




Value Stocks Are Hot—But Most Investors Will Burn Out

When Cheaper P/E Ratios Mean Nothing

Get Rich Slowly

John Maynard Keynes: Courage Is the Key to Investing

Philip Carret: Buy ’em Cheap and Hold ’em

An Investor’s Field Guide to Bottom Fishing

A Rediscovered Masterpiece by Benjamin Graham

A Portrait of the Investing Columnist as a (Very) Young Man