Chapter 4. Nothing Succeeds Like Success

 

“The race is not always to the swift, nor the battle to the strong, but that’s the way to bet.”

 
 --Damon Runyon

In the last chapter, we saw that within the U.S. market, there are several different investment styles, of which we highlighted four: large company value stocks, large company growth stocks, small company value stocks, and small company growth stocks. The reason why the distinctions between these styles are important is that at different times, different investment styles have performed the best. The rewards for choosing the better styles and avoiding the weaker ones have been significant. In this chapter, you will learn a simple strategy for keeping your money in relatively productive areas of ...

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