, Columnist
Value Investing’s Drought Defies Popular Explanation
Conventional wisdom about the strategy’s slump doesn’t stand up to scrutiny.
Confused.
Photographer: Ron Antonelli/Bloomberg
This article is for subscribers only.
This is the second in a series of three columns. Read the first column here about the conundrum facing value investors.
Value investing, a bankable strategy for decades, has fallen on hard times. Value stocks have badly underperformed growth ones since around 2007, and the trend has accelerated in recent years. Disappointed value investors understandably want answers, and several popular and appealing explanations are making the rounds. The problem is they don’t quite stand up to scrutiny.