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Another Value vs Growth article to ponder
Old 08-18-2007, 01:08 PM   #1
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Another Value vs Growth article to ponder

I'm still holding true to my value/SCV tilt and I think that it still a wise long-term strategy. Here's what Investor Solutions has to say about it.

The data used in this analysis was only twenty seven years because it was based on the Russell 1000 index which dates back to 1979. Longer historical data is available via other indexes and the results are the same. There is a value premium that is consistent domestically, internationally, and in emerging markets as well, in both small and large equities. For some reason individual investors are building their portfolios in the exact opposite manner by overweighting growth stocks. Maybe they like lower returns and higher volatility, but, I doubt it.


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Old 08-18-2007, 04:43 PM   #2
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Hmmm - I dumped my sm value/REIT indices in 2006 and went more to Ben Grahams 'the middle way' via a Bogle - esque Total stock market(TSM iindex) - just buy the whole dang thing and whichever side skins or shirts(ie value or growth) wins - you own it -at the lowest possible cost ( and lowest turnover, heh heh heh).

Now then - still have my thumb on the scale with 15% dividend Norwegian widow stocks( a form of value) - but slowly(taxes permiting) scewing toward more growth(as in div growth).

Why? Cause the look back numbers say I'm wrong and Wall Street has been feeding the ducks in recent years with dividend products and then the tax break recently. Being retired, a former live by the numbers en-ga-neer - retired says driving into the future looking into the rear view mirror - maybe isn't the best course.

Willing to conceed RTM ala Bogle may exist - my favorite investment theory(chickenheartedness) rather than bet contrary - just buy the whole thing at the lowest cost/turnover.

Of course I'll continue to read the articles.

heh heh heh - pssst Target Retirement plus a few side bets(individual stocks). Numbers - I don need no stinking numbers - I'm retired!
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