Value Investing News

The market’s reasonably priced for a change, but should investors wait until it gets ludicrously cheap?

The market’s price earnings ratio is lowish suggesting good returns ahead. But the long-term PE is high, suggesting we’re doomed. Can they both be right?

Investors hate uncertainty but paradoxically it ’s in uncertain situations that some of the best opportunities lie, if you have what it takes to embrace them. I want to look at Wogen (a company), for a couple of reasons:Graeme Pietersz an analyst and blogger recently challenged active investors to demonstrate their skill by explaining the inefficien....

Academic theory suggests you can’t knowingly beat the stockmarket. Investors that do are just lucky, or crooked. The majority that don’t are suckers. It’s not true.

Occasionally a cult forms around an investor. In the case of Mohnish Pabrai, it’s a sub-cult of the mother of all investment cults.

Historical tests show Dr Keith Anderson's 'Naked' PE ratio has awesome predictive potential, but does it work in today's markets? The Durham (UK) University academic reveals his latest stock picks.

1987? 1973? Investors are worrying about which year the stockmarket of 2007 most resembles. Both years saw major bear markets, but there's no need to worry, says Ken Fisher. The boom must go on and his reason will interest value investors. Fisher says prices have a long way to rise because investors don't understand just how undervalued they are.

Report on an academic study: In summary, institutional herding on hope and fear drives overvaluation (undervaluation) of growth (value) stocks, leading to their future reversals of fortune.

This post piggy-backs on a Value Play blog on Home Depot and how investors who bought it in 2001 overpaid. The writer suggests that sometimes it does pay, to overpay!

The basics of value investing through the eyes of a ten year old (and his Dad).

The PE ratio has been the investor's friend for over a century. The problem is it barely works. But a new 'improved' PE ratio promises better returns, and this article identifies the shares that should prove it.