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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (42556)5/7/2011 3:10:39 AM
From: Paul Senior  Read Replies (3) of 78754
 
re Greenblatt: The headline:

"Value Investor Greenblatt: Here’s How to Beat the Benchmark"

His significant point, I believe: "Finally, according to Greenblatt, at the top of the investing chain are value-weighted indexes, which consist of stocks with cheap valuation and high quality. Greenblatt likes the Vanguard Value ETF (VTV) and of course the mutual fund that he was involved in creating, the Formula Investing US Value 1000 fund (FVVAX)."

And here's how Yahoo says these two value funds are doing over the past five years compared to typical market benchmarks:

finance.yahoo.com^GSPC%2C^IXIC%2C^DJI

In other words, contrary to what the article promises, these two funds have not beat a benchmark that's defined by "market-cap weighted indexes".
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I'd love to see small cap value index funds and/or large-cap value index funds beat the market. And sometimes for some periods of time, I suspect they do. Not always though, afaik.

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