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

To: Jurgis Bekepuris who wrote (54706)	1/4/2015 1:31:43 PM
From: paulelgin	3 Recommendations Recommended By E_K_S Mattyice Truedarkblue Read Replies (1) \| Respond to of 78627

Value investors will naturally underperform during bull markets, particularly long-in-the-tooth bull markets, b/c we are risk-averse. There are fewer opportunities that meet our rigorous criteria for commitment of capital, thus we sit and wait, even if it is painful to watch the indexes "outperform" in the short-run. Don't pay attention to the indexes as a benchmark, however; pay attention to your own long-run gains. Absolute performance means much more than relative performance. Preserve capital, keep dry powder on-hand, and load-up when opportunities are plentiful.

To: Jurgis Bekepuris who wrote (54706)	1/4/2015 9:20:16 PM
From: Paul Senior	2 Recommendations Recommended By E_K_S Jurgis Bekepuris Respond to of 78627

"Do you remember how it was in the runup to 2000/2001? Did you experience similar market underperformance then?" I underperformed in the 1999 tech bubble. I held none of the high-flyers, but did add to value stocks. Generally it seemed that they were way out of favor. They came back though at the tech bubble burst, and I believe I outperformed by far. Not sure though. Time, age (mine) and selective memory sometimes blur the facts.