Value Investing: Staged for a Comeback?

In long-term perspective, portfolios have fared better when slightly weighted towards “Value” companies (companies that are less expensive due to perceived lower future growth). In recent years, “Growth” companies have outperformed and drive indexes higher. For example, since 1931, “Value” investing has outperformed “Growth” by nearly 5% per year. However, for the past 5 years, “Growth” has outperformed value by 11%. Our portfolios emphasize weighting towards “Value” companies and, as a result, have felt sluggishness. This will, however, shift at some point.

Source: StarCapital