Anthony Bolton Comments on Investing in Value Stocks

• Tweet
• Pin It

Anthony Bolton, recently retired Fidelity Special Situations Fund manager, is coming out with a book Investing Against the Tide: Lessons From a Life Running Money and provided some viewpoints about investing in unpopular stocks in a recent Financial Times article.

He quotes Jeremy Grantham, “Growth companies seem impressive as well as exciting. They seem so reasonable to own that they carry little career risk. Accordingly, they have underperformed for the last 50 years by about 1.5 per cent a year. Value stocks, in contrast, belong to boring, struggling or sub-average firms. Their continued poor performance seems, with hindsight, to have been predictable and, therefore, when it happens, it carries serious career risk. To compensate for this risk and lower fundamental quality, value stocks have outperformed by 1.5 per cent a year.”

Source:

http://www.ft.com/cms/s/2/cbe95fd8-1aea-11de-8aa3-0000779fd2ac.html
***

• Tweet
• Pin It

Related Posts

• 

  Global X MLP ETF to be Added to the SMA Portfolio
  Global X MLP ETF to be Added to the SMA Portfolio
• 

  Marc Faber Warns of Dangerous Valuations and Crash Ahead
  Marc Faber Warns of Dangerous Valuations and Crash Ahead
• 

  Jeremy Grantham Thinks Stocks Could Move Up Another 20-30%
  Jeremy Grantham Thinks Stocks Could Move Up Another 20-30%
• 

  David Herro on Which European Stocks Will Shine
  David Herro on Which European Stocks Will Shine