Large Value: Counterintuitive Cash Cows
In This Chapter
Evaluating value investing
Weighing value against growth for performance and risk
Recognizing ETFs that fit the value bill
Knowing how much to allocate
Choosing the best options for your portfolio
Why do American suburbanites gingerly cultivate their daisies, yet go nuts swinging spades or spraying poison chemicals at their dandelions? Why is a second cup of coffee in a diner free, but a second cup of tea isn’t? Some things in this world just don’t make a lot of sense. Why, for example, would slower-growing companies (the dandelions of the corporate world) historically reward investors better than faster-growing (daisy) companies? Welcome to the shoulder-shrugging world of value investing.
I’m talking about companies you’ve probably heard of, yes, but they aren’t nearly as glamorous as Google or as exciting as Cisco. I’m talking about companies that usually ply their trade in older, slow-growing industries, like insurance, ...