Wall Street Value Investing

Author: Andrew Smithers (Smithers, A.) et al., translated by Gu Wei Hong, Ye Jian Yun
Publisher:
Publishing Date: 2001-08-01
Features: This book does not claim that stocks are inherently risky; on the contrary, it repeatedly assures us that long-term investors can invest in stocks—most of the time. At the same time, it warns that at certain periods in history, stock valuations may be too high, making stocks far from an ideal investment. And now, precisely such a period is upon us. "Investors who understand and effectively use q can take on lower risk and achieve higher returns compared to those who only adopt a 'buy-and-hold' strategy." Will the sun rise tomorrow? Of course, and it will always rise. Will stock prices plummet from historical highs? Of course, and they will always do so. The Wall Street Value Investing book points out that q has greatly outperformed the peak values of major stock markets in the 20th century. "Average reversion" suggests that q will also decline as stock prices fall from their current peak. You can ignore history and invest with full commitment.