Homepage
PR Newswire
17-08-2015, 11:44 AM
Hey Value buds!
Apologies for going missing when i'm the one who started this thread. Took the national day opportunity to go on a holiday with my family. I hope you guys had a good rest away from the market too!
Continuing on this thread, have we actually wonder how viable are the value investing strategy other than it being advocated by a handful of successful value investors? Could these successful value investors be random events? Can value investing strategy be easily adopted by retail investors? As astute value investors, these are the questions we should be able to answer.
In this post we look at a 1994 study by LSV which examines the value strategy approach. I have summarized the key findings in a blog archive (specifically for this thread) and for the purpose of this thread, made it even shorter. If you like, you can visit the blog archive which includes also my comments.
Speed Read:
Any of you guys use the same methodology as LSV in constructing your portfolio? Is it working in the Singapore market as well?
Has anyone came across similar or contrary studies?
Would be great to hear from you guys!
Cheers
HSq.Cap
https://hsquarecapblog.wordpress.com
Apologies for going missing when i'm the one who started this thread. Took the national day opportunity to go on a holiday with my family. I hope you guys had a good rest away from the market too!
Continuing on this thread, have we actually wonder how viable are the value investing strategy other than it being advocated by a handful of successful value investors? Could these successful value investors be random events? Can value investing strategy be easily adopted by retail investors? As astute value investors, these are the questions we should be able to answer.
In this post we look at a 1994 study by LSV which examines the value strategy approach. I have summarized the key findings in a blog archive (specifically for this thread) and for the purpose of this thread, made it even shorter. If you like, you can visit the blog archive which includes also my comments.
Speed Read:
- Value investors regularly challenge conventional wisdom but short of questioning their own. In particular the value investing approach. The value investing approach is attractive because it works, and not because it is advocated by certain famous investors.
- Our maiden post looks at a 1994 study by LSV which examines the performance of value stocks against glamour stocks. Their result showed that value stocks consistently outperform glamour stocks over the period 1963 to 1990.
- Numerous literature have suggested that the outperformance is due to value stocks being fundamentally riskier. LSV have found no conclusive evidence that value stocks are riskier. Instead, the study has shown that value stocks exhibit extremely high reward-to-risk ratio.
- Beyond the results, LSV’s study provided lessons as to why “value investing is simple but not easy”. For the astute value investors, these lessons should be be seen as windows of opportunity.
Any of you guys use the same methodology as LSV in constructing your portfolio? Is it working in the Singapore market as well?
Has anyone came across similar or contrary studies?
Would be great to hear from you guys!
Cheers
HSq.Cap
https://hsquarecapblog.wordpress.com