The year that passed value by

摘要

It was not a year to be a value investor. The year began with glamour stocks like Cisco, Dell and America Online trading at high multiples of earnings and book value; it ended with these stocks trading at extremely high multiples. Value stocks, the kind I specialize in, lagged badly. Call me stubborn, but I remain committed to value. Now is not the time to get on the Internet bandwagon. Put your money into oil, tobacco and financial stocks. The long-term superiority of value investing over glamour investing has not gone away. All that said, I have to concede that the short-term performance of the stocks recommended here was disappointing.