Something to Sink Your FAANGs Into

There’s a misconception in the markets: Value stocks have lost their vigor. Value stocks have underperformed growth stocks over the past decade. In the U.S., the annualized compound return has been 12.9% for value stocks, or those trading at a low price relative to their book value. That contrasts with 16.3% annualized compound return for growth stocks, or those with a high relative price.

Value Judgments: Viewing the Premium’s Performance Through History’s Lens

There’s a misconception in the markets: Value stocks have lost their vigor. Value stocks have underperformed growth stocks over the past decade. In the U.S., the annualized compound return has been 12.9% for value stocks, or those trading at a low price relative to their book value. That contrasts with 16.3% annualized compound return for growth stocks, or those with a high relative price.