Bet on the tortoise over the hare – better to lag a bull than a bear market


#1

Originally published at: http://whichinvestmenttrust.com/bet-on-the-tortoise-over-the-hare-better-to-lag-a-bull-than-a-bear-market/

Fast growing stocks whilst sexy and interesting, don’t necessarily outperform their slower growing peers – but don’t take my word for it, there is some fascinating independent research that demonstrates that the slow growing tortoise beats the fast growing hare! Unless it is a market capitalisation tracker fund, that perfectly matches, the index any portfolio…


#2

I agree with @robert_davies, in fact I would go further, there are many studies that have shown value investing outperofrms, but you have to be prepared to hold on in there during the periods that it underperforms, which can last for several years.

If it’s paying a dividend and you don’t need access to the capital, then that is a good trade off for me because you’re being paid something whilst you wait.

I do hold some growth funds though such as Scottish mortgage, which has been a fantastic performer.

I would like to find a value tracker or ETF for America but there doesn’t seem to be any, which surprises me.


#3

Actually @robert_davies article should be taught to kids in schools. He is not only correct in what he writes but a lot of investors could do themselves a favour by reading it and recording it as their mantra. I have met and chatted online to too many investors who chase growth and end up buying duds. I used to do the same myself.

Good work sir!