Why Do Value Fund Investors Consistently Underperform?

Value investing can be a tough discipline to follow for the average individual investor. Research can take hours to put together, and it can take years for an investment thesis to play out. What’s more, trying to be “greedy when others are fearful” goes against our social nature as human beings (if you’re interested in why this is the case, I’ve covered the topic before, here). [timeless] As a result, many private investors turn to value-orientated mutual funds instead of specific stocks, the rationale being that more experienced mutual fund managers won’t make silly mistakes and have the stomach to…