Posts

Showing posts from April 26, 2009

comeback for value investing

Image
Though growth stocks have made the most of the bull market momentum, value stocks did much better in containing falls during the inevitable reversal. The result: a better long-term record.
Aarati Krishnan The stock market has rallied 40 per cent in a flash; mid-cap stocks have kept pace with blue-chips and the action in small-cap stocks is reaching frenzied proportions, with many of them clustered at the upper circuit limit on any given trading day. While speculative froth is undeniably building up in one segment of the market, there has been a rational element to how stock prices behaved in this unexpected rebound. Value investing, or buying stocks that trade far below their intrinsic value, has paid rich dividends in the bounce-back from the March trough. And that's not a flash in the pan. Our analysis shows that value investing has delivered good results for Indian investors over the long term as well. That contrasts with the popular notion that India is a "grow…

comeback for value investing

Image
Though growth stocks have made the most of the bull market momentum, value stocks did much better in containing falls during the inevitable reversal. The result: a better long-term record.
Aarati Krishnan The stock market has rallied 40 per cent in a flash; mid-cap stocks have kept pace with blue-chips and the action in small-cap stocks is reaching frenzied proportions, with many of them clustered at the upper circuit limit on any given trading day. While speculative froth is undeniably building up in one segment of the market, there has been a rational element to how stock prices behaved in this unexpected rebound. Value investing, or buying stocks that trade far below their intrinsic value, has paid rich dividends in the bounce-back from the March trough. And that's not a flash in the pan. Our analysis shows that value investing has delivered good results for Indian investors over the long term as well. That contrasts with the popular notion that India is a "grow…