
Lessons 37
If investors had invested $1000 in the two portfolios on December
31, 1992, and subsequently reinvested the dividends every year until
December 31, 2006, they would have fared by far the best if they had
invested in the CVF portfolio. As can be seen in the gure, the competing
values top 20% portfolio would be worth more than $11,500 whereas the
average stock portfolio would only have increased to close to $4500.
4
LESSONS
There are two simple lessons to be learned from this chapter.
n
Using the CVF, and particularly its link to value creation and your
rm’s stock price, you can develop a better appreciation of your ...