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Vinvesting.com is the leading social networking site for value investors where you can get the latest investment ideas, insights and interviews from great investors like Warren Buffett, Templeton etc. Over the last 70 years, value stocks clocked a 13.4% average annual return, vs. 10.2% for growth stocks, according to Ibbotson Associates. |
Value managers take it on the chin in volatile markets
Submitted by admin on Thu, 07/31/2008 - 08:28
Being a value investor is a tough job at the best of times. Lately, it's been nothing short of excruciating. Value investors look for stocks that are trading at a discount to their true worth, using such measures as price-to-earnings and price-to-book ratios to uncover hidden gems. The idea is to buy stocks when nobody wants them, then cash in when the market comes to its senses and prices rise.
Most people don't have the stomach for value investing. To be successful, you need loads of patience and a strong contrarian streak. You also need the market to co-operate, something it hasn't done lately as the credit crisis and soaring fuel prices play havoc with stocks.
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