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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (43159)7/4/2011 9:47:23 PM
From: Mark Marcellus1 Recommendation  Read Replies (1) of 78740
 
Now you need to ask yourself, why a stock went down to begin with - in most cases there will be good reasons. The market pays for future earnings, not the past ones.

When you are doing your own DD, I absolutely agree with the above. However, that has nothing to do with the MF strategy. The beauty of MF is that you don't have to worry about all that. You regularly buy baskets of stocks that have been good businesses in the past, are now cheap for what are indeed very good reasons, and for which you can have confidence that over time most of them will recover, return to form, and give superior returns. That's been true historically and I see no reason why it should change in the future.
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