Quite a difference. The equivalent numbers for growth stocks were just 10.0 percent and 9.4 percent. Large value beat large growth in six out of eight decades. Still, you don't get something for nothing. Value stocks, according to Ibbotson, were more volatile.
Research also reveals strong cycles in which one style outperforms another.
Growth dominated during the last half of the 1990s. I am perfectly content to buy a company when it was in the value stage, ride it to growth and then keep riding it forever. There are two lessons when it comes to value and growth. In other words, your portfolio should have some growth stocks and some value stocks. Second, and far more important, the market moves in fits and starts.