Value Investors are Winning

Posted on November 27, 2007 at 11:32 am
Filed Under Financial Markets, Financial Planning, Investment Planning

An article was published at www.reportonbusiness.com stating that long term, value based thinking is the way to go in our current market conditions.

Justin Hill is a Senior Investment Manager at Pictet International Management and his fund has returned an average of 11.1% over the past 10 years investing in global, value based companies. He says that they look for “a price-to-earnings ratio less than that of the market, and growth more than that of the market.” This fund is just one great example of the long term perspective that many fund managers hold to be true, and in this time in the market, it is now more important then ever.

Your Take-Away: You may have been told in the past to “do whatever everyone else isn’t doing”, and now is a great opportunity to take that advice to heart. Black Friday in the US is the largest shopping day of the year, primarily because of the massive savings provided by many, if not all retailers. Continuing to buy in this market and by taking advantage of Dollar Cost Averaging could provide significent savings to you knowing that over time, the market will turn around. If you buy your funds or stocks at a discount and you know the price will come back up, doesn’t that sound like a good “value”?

Before making any investment decisions, it is essential that you take a look at your current situation and and ensure that any investment you make works well within your current porfolio and matches your risk profile appropriately.

Until next time, have a Terrific Tuesday.

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