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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 or Value Trap?
Submitted by admin on Wed, 01/30/2008 - 10:53
As investors, we're interested in uncovering stocks that Mr. Market, for whatever reason, has mispriced. Hey, we're opportunists, right? After all, ferreting out value before the "smart" money does is the name of the game if you want to beat the market.
The trouble is that seemingly cheap stocks are plentiful. A quick screen finds more than 4,000 companies trading at levels 20% or more below their 52-week highs. Filter that group again, this time seeking companies trading at least 25% below their yearly highs, and you're still left with more than 3,400 names -- a list that includes China Mobile and Intel.
So, you should head to your favorite discount brokerage and start placing orders, right?
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