David Booth on Value Investing

We really like this article from David Booth in relation to Value Investing. Here are the key takeaways:

• The price you pay for a share has a bearing on its expected return. The more you pay for a share, the less your expected return.
• In the same way, shares don’t always provide a better return than bonds, value shares don’t always outperform growth shares and small companies don’t always outperform larger companies.
• Trying to time the market has proven to be very difficult over a long period of time – particularly as you don’t know when the premiums will pay off.

Read the article here.