Keyword: Value Investing

Value investors look for companies they can buy for less than their estimate of present value. That estimate often uses financial-statement criteria such as book value, sales, cash flows or earnings. Value investors may look further for hidden value such as management ownership of a company’s stock, patents or special market niches for a company’s products. They may even look at what a company is worth in a possible takeover. A value fund manager will tend to have a portfolio of companies that trade at below-average price/earnings and price/book value ratios. What’s more, many companies in value portfolios pay higher-than-average dividends. (See also Momentum Investing and Sector Rotation Investing.)

Back to top

Where to put new money now

Make sure you have exposure to value funds as well as growth funds now. We currently favour Canadian equity funds over their US counterparts.

Fiscal stimulus and ultra-low interest rates helped   Read More

Where to put new money now

Make sure you have exposure to value funds as well as growth funds now. We currently favour Canadian equity funds over their US counterparts.

Fiscal stimulus and ultra-low interest rates helped   Read More

Where to put new money now

Make sure you have exposure to value funds as well as growth funds now. We currently favour Canadian equity funds over their US counterparts.

Fiscal stimulus and ultra-low interest rates helped   Read More

Value vs growth stocks

Underpriced slower-growing companies are often better investments than overpriced fast-growing companies. In other words, value investing often pays more than growth investing.                  
Jeremy Siegel is a professor   Read More