Value Investing is so yesterday. Modern Research shows how you should be investing today.
Value investing is a popular strategy among investors and many excellent results have been achieved. And with Warren Buffett being recognised as one of the richest man who has made his riches through Value investing. it’s little wonder why so many gurus are teaching Value Investing today.
However, did you know that what defines value differs from person to person? Warren Buffett’s current method of Value Investing will not work for the average investors like us because he has the network and access to private deals that we can never tap into.
What modern research thinks:
Instead of focusing on every Value Investing method out there, academics took an opposite approach. They looked at the stocks that did well and looked for precise commonalities that exists in these stocks.
By basing their research solely on stocks and their returns, these academics removed secondary success factors such as the need for private deals, the need for an access to management, etc. These secondary success factors are conditions that the average investors do not have access to.
What modern research says:
After decades of research, the academics have identified 5 success factors that are present in stocks that beat the market and provide outrageous returns.
Berkin and Swedroe published a 400-page book on these recently.
Trying to explain everything in this 1 article would be too much. But, we will be sharing what we have learnt (and applied) about these 5 factors in a free, live course. Learn more here: Introduction to Factor Based Investing
Take a test drive, seat in at our free Factor-Based Investing Introductory Course and decide for yourself.
Plus, discover an investing strategy optimised for today's market while you are here