Anthony Bolton Comments on Investing in Value Stocks
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
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
***
Related Posts
-
Global Gold Miners ETF Allocation IncreasedCash available was added to the SMA Portfolio's holding...
- August 10, 2020
-
-
-
Is the Retirement Crisis Really a Crisis?PBS Frontline recently presented a documentary called “The Retirement...
- April 25, 2013
-
Alarming Chart of the Stock Markets of 1987 and 2012-2013Several days ago I posted a chart showing the...
- May 22, 2013
-
Bill Ackman Thinks Diversification is for the Lazy
Bill Ackman made a speech at the Active/Passive Investor...
- March 4, 2010
