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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (53151)	1/10/2014 6:59:35 PM
From: Spekulatius	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (1) \| Respond to of 78614

If you want to fuel you performance envy, read this thread: cornerofberkshireandfairfax.ca FWIW, my own return this year was about 30%, same than the SP500. I am satisfied with that, even though i did not bet the index, my portfolio has less risk than the index and in a strong bull market, where everything goes up, it's hard to beat the benchmarks with value stocks, just following the chart trends would work much better (and i think this is what many are doing). Look at it another way, earnings YOY are probably up 10% for the index (if that) so from the 30% performance, 20% or 2/3rd came from simple multiple expansion. This is clearly not the hallmark of a value driven market, since stocks were not particularly cheap in early 2013 either. I think it is dangerous to change your investments strategy because of a short term underperformance. For one thing, most people here found a way to make Mr. Market work for them over the years and they have found an approach that works and that they are comfortable with. Changing that approach should be done with great care and deliberation, because Mr. Market could easily change his stripes (go from a straight up to a see-saw pattern for example), at which point an approach that is backward looking might fail too. Most people, that have an approach that makes sense, methodological, based on valuation metrics, and who keep their emotions in check should do OK and beat the indices over time, if by nothing else but avoiding stupid mistakes that Mr. Market is prone to from time to time.