Are You Fishing In A Pond That Is Just Too Small? Global Value Investing Proven by Tim du Toit, Quant Investing Do you only invest in the in the country where you live? If you do it’s a big mistake as it severely limits your investment opportunities and returns. You are fishing in a pond that is just too small. Don’t take my word for it But don’t take my word for it as I found an interesting research paper that proves it works by James Montier, currently a member of the asset allocation team at GMO. (Be sure to…
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- Don’t take my word for it
- Does global value investing work?
- Great fund managers have shown it works
- In theory it should work
- Every country has problems
- If its 50% cheaper
- This is how he tested
- The European evidence
- What about emerging markets?
- Emerging and developed markets
- Value beat growth by 15% per year over 22 years
- And it convincingly beat the index
- But you have to be patient
- Global value investing needs patience
- A concentrated portfolio
- What buy 1,800 companies?
- What if you only bought 30 companies?
- Your yearly performance
- Your performance against the market
- Concentrated equals more volatile but that isn’t risk
- Less negative years than the market
- Patience is rewarded
- Conclusion, global value investing works
- How to build this strategy in the screener
- Composite value indicator
- Only the cheapest companies
- Companies over $250 million
- Select all the markets you can trade
- Sort the list by VC1
- That’s all you have to do
- Source:
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