Value Investors can't beat the S&P 500?

Discussion in 'Stocks' started by short&naked, Oct 16, 2008.

  1. Is there any value investor out there (aside from Buffet) who can beat the averages?

    Christopher Brown who wrote "The Little Book of Value Investing"
    was never able to. He comes from a lineage of money managers that includes Warren Buffett's partners. Here is his fund vs. the S&P 500.;range=my;compare=^gspc;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=off

    This makes me question if value investing for the individual is even possible. Anybody out there doing it successfully? (i.e. beating the averages consistently).
  2. Yea, I know one. He's not much help though, he speaks very little English. He retired a few years ago very wealthy. He worked for GE and bought stock during his entire 30+ years working there. He was a buy and hold kinda guy. I don't think he even read a book about value investing.
  3. 1) Part of the "problem" is that larger-cap stocks, i.e. components of the S&P-500, attract more buying because of indexation and "excessive" derivatives hedging which supports their prices.
    2) Non-indexed stocks seem "undervalued" because they miss out on a lot of that trading.
    3) Generally, there's never an eruption of buying into a "value stock" until it gets a takeover offer or it can become an index component.
  4. he seems to be a real expert from his birth. yeah, it sometimes happens that such people exist. they just know how to do.