Anthony Bolton Comments on Investing in Value Stocks

By on March 29, 2009

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.”


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