Anomaly – Value vs. GrowthDecember 4, 2018<br /> Since 1926, if you were to rank stocks by their price-to-book ratio those with low ratios (value stocks) have outperformed those with high ratios (growth stocks) by an average of 4.8% per year.Does this always work? Absolutely not. Value stocks have underperformed since the Great Recession…mostly because financials are classified as value stocks…even though their book values aren’t necessarily accurate.If you go back to Benjamin Graham…the pioneer of value investing…he suggested that financials be excluded from the equation in determining undervalued companies.It’s important to remember that all anomalies…all investment strategies…will be in-favor and out-of-favor at different times. The key is to stick with a strategy and remain disciplined.About the Author: There’s nothing Strategic Wealth Partners CEO Mark Tepper loves more in this world than winning. What constitutes a win for Mark? Successfully developing financial strategies for clients that get results. Since founding SWP in 2008, Mark put his competitive nature and years of experience to work putting points on the board for clients looking for... read more...Send a message toMark Tepper Reach OutSchedule a Virtual Meeting Book NowStay up to date on all the latest blogs.All we need is your email. Best Email* PhoneThis field is for validation purposes and should be left unchanged. Share It About the Author: There’s nothing Strategic Wealth Partners CEO Mark Tepper loves more in this world than winning. What constitutes a win for Mark? Successfully developing financial strategies for clients that get results. Since founding SWP in 2008, Mark put his competitive nature and years of experience to work putting points on the board for clients looking for... read more...Send a message toMark Tepper Reach OutSchedule a Virtual Meeting Book Now
